The crypto market is renowned for its wild swings and unpredictability. Despite the roller-coaster nature of digital assets, investors are often drawn to the allure of undervalued tokens, hoping to find the next hidden gem. While it might seem nearly impossible to predict the next meteoric rise, a discerning eye can identify tokens that are well-positioned to capitalize on current trends and drive substantial returns.
In this article, we’ll explore the 5 promising yet most undervalued tokens in 2023, examining their potential, features, and market outlook.
Our criteria for selection
Identifying undervalued tokens requires a comprehensive approach. Our criteria for handpicking the tokens on this list include innovation, team expertise, community engagement, market demand, and resilience to trends. Without further ado, let’s explore each of these tokens.
The hidden gems: Token analysis
1. Polygon (MATIC)
Polygon, with its ticker MATIC, has made significant strides in bridging the scalability gap for Ethereum. The project, acting as a Layer 2 scaling solution, addresses the challenges of slow transaction speeds and high fees that Ethereum has grappled with over the years before their recent updates.
With the capability to support over 7,000 decentralized applications (dApps) that operate without intermediaries, Polygon has transformed into a web of interconnected blockchains. This connectivity positions it as a catalyst for robust and practical dApp development, ultimately enhancing the value of the entire blockchain.
Statistics
As of press time on Nov. 7, MATIC’s current Price is $0.727 with a market cap of $ 6.7 billion and a 24-hour trading volume of $300 million.
Key strength
- Interoperability: Seamlessly integrates with Ethereum, making migration easy for dApps while ensuring scalability and cost-effectiveness.
- Multiple sidechains: Operates parallel sidechains for high transaction throughput, ensuring smooth dApp performance.
- Community and partnerships: Thriving community and strategic DeFi partnerships with Aave, SushiSwap, and Decentraland.
Potential for growth
The focus on user experience and simple processes positions MATIC to attract more developers and projects to its network. With ongoing technical upgrades and a committed team, MATIC has the potential to be a fundamental part of the blockchain’s future.
2. Agoric (BLD)
Agoric, represented by the symbol BLD, is revolutionizing the blockchain landscape by bringing JavaScript into the world of decentralized applications (dApps). By integrating hardened JavaScript into its smart contracts, Agoric offers a platform where millions of web2 developers can utilize their existing skills to create dApps, NFTs, and DeFi markets.
Statistics
BLD’s price stands at $0.131, with a market cap of $85 million and a 24-hour trading volume of $355,227.
Key strength
- JavaScript integration: Agoric’s standout feature is its integration of JavaScript into the smart contract landscape. With JavaScript’s global dominance, Agoric taps into a vast developer pool already proficient in this language. This offers an accessible platform for dApp, NFT, and DeFi creation without the steep learning curve associated with other blockchain languages.
- Native Tokens (BLD & IST): Agoric’s native tokens, BLD and IST, play a crucial role in the ecosystem. BLD serves as a staking token, enhancing network security and enabling token holders to govern the stable currency, IST, which is pegged 1:1 to the USD. This dual-token system supports various functions, including transaction fees and the Dapp Economy within the Agoric ecosystem.
- Excellent Team: Agoric boasts an exceptional team including co-founders Dean Tribble and Mark S. Miller, with a wealth of expertise in blockchain and smart contract development, further solidifying its position as a key player in the industry.
Potential for growth
Agoric’s recent partnership with BitGo is expected to drive increased adoption, facilitate interchain integration, and enhance its ecosystem. The focus on safer smart contracts positions Agoric for growth in the expanding DeFi sector, ensuring a promising future within the evolving blockchain ecosystem.
3. XRP
XRP is not your typical cryptocurrency. While many cryptocurrencies are designed to be alternatives to traditional fiat currencies, XRP serves as a bridge between them. It facilitates cross-border payments and settlements, making it an essential component of the global financial system. Ripple has established partnerships with numerous financial institutions, further solidifying its presence.
Statistics
XRP’s current Price is $0.68 with a Market cap of $36.66 billion and a 24-hour trading volume of $3.36 billion.
Key strength
XRP’s standout features are its remarkable transaction speed and cost-efficiency, established partnerships with financial institutions, and governance.
Potential for growth
XRP’s distinctive attributes place it in a league of its own within the cryptocurrency space. Its strong market presence and its utility in facilitating cross-border transactions hint at long-term growth prospects.
4. Algorand (ALGO)
Algorand is a self-sustaining blockchain network designed for secure, scalable, and efficient application development. With the ability to process around 1 million transactions each day by the end of 2020, Algorand has made its mark by aiming to be compatible with Ethereum. Its approach to creating a more secure and accessible platform gives it an edge in the competitive landscape.
Unlike other blockchain networks, Algorand does not rely on miners or validators to maintain its operations. Instead, it leverages a Pure Proof of Stake (PPoS) mechanism, where all ALGO holders engage in block creation and validation. This ensures decentralization and network resilience.
Statistics
ALGO’s current price is $1.25, with a market cap of $1 billion and a 24-hour trading volume of $60.23 million.
Key strength
Algorand offers rapid transaction speeds and scalability, ideal for DeFi and NFT platforms. It supports smart contracts, DeFi applications, and community-driven governance, extending its value beyond token price speculation.
Potential for growth
Algorand’s commitment to decentralization and scalability positions it as a promising blockchain platform.
5. Binance Coin (BNB)
Binance Coin denoted as BNB, serves as the native token of Binance, one of the world’s largest cryptocurrency exchanges. Binance’s leadership and robust fundamental foundation set it apart from competitors, particularly highlighted by its proactive move to launch a $1 billion recovery fund in response to the FTX exchange collapse.
With a daily average trading volume of $65 billion and spot transactions worth $300 billion in 2022, Binance Coin thrives within the tumultuous crypto market.
Statistics
BNB is priced at $251.25 with a market cap of $38.11 billion and a 24-hour trading volume of $546 million.
Key strength
- Utility token: The backbone of Binance’s ecosystem, offering reduced fees, participation in token sales, and powering Binance services.
- High liquidity: Among the most liquid cryptocurrencies, ensuring efficient trading and access to numerous pairs.
- Discounts and rewards: Holding BNB yields reduced trading fees and promotional airdrops, especially appealing to active traders.
Potential for growth
Binance’s continuous initiatives and the adoption of the Binance Smart Chain Such as its Ethereum compatibility to drive DeFi, NFT, and dApp growth, its Binance launchpad platform where BNB ownership grants access to fundraising opportunities highlight the token’s significant potential in 2023.
Conclusion
Investing in undervalued tokens can be a rewarding endeavor, but it’s crucial to tread carefully. Remember that when it comes to crypto, thorough research, and due diligence are your best allies.
Investors and enthusiasts should keep a close watch on these tokens, as they are not only undervalued but also poised for impactful contributions to the future of blockchain and cryptocurrency.
