Introduction
The cryptocurrency market has witnessed an impressive start to 2023, with all major cryptocurrencies experiencing significant growth. However, despite these remarkable gains, many top cryptos remain significantly below their all-time highs. This presents an opportune moment to explore undervalued cryptos that possess the potential for substantial returns. Two such cryptos that warrant attention are Avalanche (AVAX) and Chainlink (LINK).
Avalanche: The Ethereum Challenger
During the previous crypto bull market, Avalanche ascended to a peak of $146. Its current price of $40 represents a steep discount of over 70%. This undervaluation is intriguing given Avalanche’s status as a formidable competitor to Ethereum (ETH). Dubbed the “Ethereum Killer,” Avalanche boasts superior speed and cost-effectiveness compared to its rival.
Avalanche offers a comprehensive suite of features akin to Ethereum, including non-fungible tokens (NFTs), decentralized finance (DeFi), blockchain gaming, and Web3 applications. Recently, the Avalanche network has witnessed a surge in popularity for a novel type of crypto collectible based on the concept of traditional NFTs. Over 95% of transactions on the Avalanche blockchain are now attributed to these collectibles, underscoring their popularity.
Avalanche’s recent surge of over 90% sets the stage for a potentially strong start to 2024. The remarkable performance of Solana (SOL), another Ethereum rival that has soared over 650% this year, could fuel investor interest in Avalanche and drive a potential influx of capital in the upcoming year.
Chainlink: The Data Oracle of Blockchain
Chainlink, another crypto that soared during the previous bull market, reached a high of $53 in 2021. Its current price of $15 signifies a discount of over 70%. Chainlink’s uniqueness lies in its role as a decentralized blockchain data oracle. Its primary function is to provide data to smart contracts, autonomous pieces of executable code.
In essence, Chainlink serves as the conduit for data exchange within the blockchain realm. Its significance is particularly pronounced in the world of DeFi, where smart contracts require constant access to real-time data. This explains Chainlink’s surge in value during the previous boom, as DeFi gained widespread attention.
In 2023, Chainlink has re-emerged with a focus on artificial intelligence (AI). The integration of AI and blockchain holds significant potential, and Chainlink is well-positioned to capitalize on this emerging trend. However, it’s important to note that the practical applications of this integration may vary in terms of appeal.
Assessing the Risk
Both Avalanche and Chainlink are speculative investments in a highly volatile market. They have demonstrated significant volatility in the past, with both soaring and plummeting in value. It’s crucial to exercise due diligence and thoroughly research these cryptos before making investment decisions.
Conclusion
Avalanche and Chainlink present compelling opportunities for investors seeking undervalued cryptos. Their deep discounts, coupled with their strong fundamentals and potential for significant growth, make them attractive propositions. As the crypto market continues to evolve, these cryptos are poised to capitalize on emerging trends and potentially deliver substantial returns in the years to come.