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Most people are familiar with famous cryptocurrencies like Bitcoin and Ethereum — but the crypto-verse has thousands of coins to date. With many options available in the crypto market, it is natural to get confused about which cryptocurrencies to invest in.
While there is always risk in investing in cryptocurrencies — whether it’s a single coin or splitting your investment into multiple currencies — you can reduce risk and maximize profits by timely identifying undervalued cryptocurrencies.
While it may be too early to determine which undervalued cryptocurrency will maximize your returns, here’s a look at each undervalued cryptocurrency’s market capitalization, background, and future value projections. This will help you make an informed decision.
Before going to the detailed list of the best undervalued cryptocurrencies for 2022, here’s a bit more about the latest crypto trends.
The On-Going Trend of Crypto World
Knowing the buying and selling trends of the most renowned cryptocurrencies gives you better insight while comparing them with undervalued cryptocurrencies.
Buying Trends
In the buying trend, the following cryptocurrencies are topping the list:
- USD Coin
- Chainlink
- Dai
Selling Trends
Following cryptocurrencies are leading the selling trend of coins in the crypto world:
- Bitcoin
- Ethereum
- Binance Coin
According to the cryptocurrency predictions for 2022, the above trends aren’t entirely unexpected. However, you may make more money from your investments this year with the following undervalued cryptocurrencies.
Top 10 Undervalued Cryptocurrencies for 2022
Most of these cryptocurrencies barely make it to the media, but many people are already earning substantial returns from them.
Here are the best undervalued cryptocurrencies.
1. Fantom
Fantom is a decentralized finance, or DeFi, smart contract platform that uses its own bespoke consensus algorithm to provide DeFi services to developers.
The Fantom Foundation, which manages the Fantom products, was founded in 2018. OPERA is the blockchain network used by Fantom.
Fantom attempts to overcome challenges connected with smart-contract platforms, notably transaction speed. The developers claim that the transaction speed is lowered by two seconds using the Fantom coin.
- Price of Fantom as of Jan. 21, 2022: $2.25
- Market capitalization of Fantom as of Jan. 21, 2022: $5,735,220,615
Why Fantom?
Fantom aims to facilitate DeFi and make all crypto transactional bodies compatible with other undervalued cryptocurrencies.
2. Tezos (XTZ)
Arthur Breitman, the founder of Tezos and the architect of on-chain governance, first suggested Tezos in a position paper published in August 2014. Later, he published the white paper for this cryptocurrency.
The Breitmans founded Dynamic Ledger Solutions in 2015, and DLS was responsible for building the original code for Tezos.
Tezos is a blockchain network similar to Ethereum in that it is based on smart contracts. However, there is a significant difference. Tezos seeks to provide more advanced infrastructure than Bitcoin and Ethereum, which means it may evolve and improve over time . You can say it’s almost failure-proof.
- Price of Tezos as of Jan. 21, 2022: $3.38
- Market capitalization of Tezos as of Jan. 21, 2022: $2,953,474,904
Why Tezos?
Tezos is one of those digital currencies that can give you additional rewards from the support of Binance and Coinbase. If you have Tezos, you might get more than your actual returns.
3. Theta
Theta (THETA) is a blockchain-based network created in 2018 specifically for video streaming. Theta mainnet is a decentralized network where users exchange bandwidth and processing resources on a peer-to-peer blockchain network.
Theta has its own native cryptocurrency token, THETA, which is used to execute various governance duties within the network.
- Price of Theta as of Jan. 21, 2022: $3.46
- Market capitalization of Theta as of Jan. 21, 2022: $3,403.994,080
Why Theta?
Theta’s goal is to upgrade the video streaming industry. The centralization, poor infrastructure and expensive pricing of many games will no longer bother you. You can also win Theta rewards on sharing the computing power via Theta video sharing.
4. Polygon
Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun, two experienced blockchain developers and a business consultant, co-founded Polygon, which was previously Matic Network, and launched in October 2017.
The projects of Polygon aim to increase the acceptance of cryptocurrency. This is done by covering the scalability issue among other blockchain networks.
Binance and Coinbase have also supported Polygon.
- Price of Polygon as of Jan. 21, 2022: $1.69
- Market capitalization of Polygon as of Jan. 21, 2022: $12,544,860,831
Why Polygon?
Polygon is a great investment for its fast transaction speed. Polygon can process up to 65,000 transactions in one second using a single side chain, and the block confirmation time for these transactions is fewer than two seconds.
On a basic blockchain, Polygon also enables the development of financial applications followed by decentralization.
5. Filecoin
In 2014, Filecoin’s first project was launched as an incentive layer for the peer-to-peer storage network Interplanetary File System, or IPFS.
Filecoin is an open cryptocurrency and protocol with a blockchain that records the network’s participants’ commitments and transactions. Proof-of-replication and proof-of-spacetime are both used in the blockchain.
- Price of Filecoin as of Jan. 21, 2022: $21.88
- Market capitalization of Filecoin as of January 2022: $3,322,585,106
Why Filecoin?
Filecoin is a decentralized data storage system, and the decentralization keeps your data’s integrity intact.
Unlike centralized cloud storage providers like Amazon Web Services or Cloudflare, you can supervise your data and have global access to the web.
6. Hedera
In August 2018, Hedera raised funds through an Initial Coin Offering, and in September 2019, it opened wide access to its mainnet for the first time.
Investors were able to buy Hedera’s original utility token, HBAR, at the lowest feasible price during the ICO.
Thanks to Hedera’s robust blockchain technology, it can outperform many blockchain-based alternatives in numerous crucial aspects, including speed, cost and scalability. Hedera transactions have a transaction cost of just $0.0001 on average, and they are usually complete within five seconds.
- Price of Hedera as of Jan. 21, 2022: $0.2338
- Market capitalization of Hedera as of Jan. 21, 2022: $4,226,555,349
Why Hedera?
The Hashgraph technology is an alternative to blockchain. This non-conventional technology makes Hedera unique from other undervalued cryptocurrencies.
Hashgraph claims to be able to process more than 10,000 transactions per second, compared to 5-20 most prominent proof-of-work blockchains.
7. Klaytn
Klaytn, launched in June 2019, is a public blockchain platform. It aims to communicate the benefits of blockchain technology by providing an accessible user experience and development environment.
Through an efficient “hybrid” design, the platform combines the greatest aspects of both public –which consists of decentralized data and control, distributed governance, and private — known for low latency, high scalability — blockchains.
- Price of Klaytn as of Jan. 21, 2022: $1.27
- Market capitalization of Klaytn as of Jan. 21, 2022: $3,285,956,088
Why Klaytn?
Klaytn seeks to make blockchain technology accessible to many users, from small businesses to large corporations. The company’s objective is to make global decentralization via blockchain possible.
Furthermore, the idea has already attracted a number of well-known brands from around the world.
8. PancakeSwap
PancakeSwap is an exchange for transferring BEP20 tokens on Binance Smart Chain that began in September 2020. While using PancakeSwap, you can trade against a liquidity pool using a completely decentralized automated market maker methodology.
The money is deposited into these pools in exchange for LP tokens, which are used to fill the respective pools.
- Price of PancakeSwap as of Jan. 21, 2022: $8.87
- Market capitalization of PancakeSwap as of Jan. 21, 2022: $2,326,772,019
Why PancakeSwap?
You can get rewards by staking Pancake Swap tokens. Staking in crypto is done by depositing and locking the LP tokens. This process is called farming, and the reward is in the form of CAKE tokens.
With no holding time, you have the option for un-staked tokens. PancakeSwap allows investors to invest in the future and increase their returns, but it all comes with inevitable risks.
9. Quant
Quant was founded in June 2018 to connect blockchains and networks globally without compromising the network’s efficiency or interoperability. It is the first initiative to address the issue of interoperability by developing the first blockchain operating system.
- Price of Quant as of Jan. 21, 2022: $109.71
- Market capitalization of Quant as of Jan. 21, 2022:: $1,324,545,086
Why Quant?
Overledger, Quant’s operating system, was created to allow any blockchain-based project to reach other blockchain networks. It can also connect an app to other apps in the same blockchain ecosystem, such as Ethereum.
The Quant App Store also supports reading and monitoring transactions from different ledgers.
10. Algorand
Algorand is a self-sustaining, decentralized, blockchain-based network with various purposes.
The Algorand mainnet went live in June 2019, and by December 2020, it could process around 1 million transactions each day. The Algorand ICO took place in June 2019, with a token price of $2.4.
- Price of Algorand as of Jan. 21, 2022: $1.03
- Market capitalization of Algorand as of Jan. 21, 2022: $6.866,373,938
Why Algorand?
Because of its nascent ecology, Algorand is a strong bet for 2022. As more developers create applications on Algorand’s blockchain, the company’s value may double or triple this year.
Takeaways
You can undoubtedly make good money from crypto mining, but it’s better if you calculate each risk associated with each undervalued cryptocurrency. To know if a cryptocurrency is undervalued, research the following factors:
- Look for the founders of the particular technology behind the crypto coin.
- Search for the market that deals in the specific cryptocurrency.
- Check out the companies partnering with the cryptocurrency.
- Finally, look out for the price pattern history of the crypto coin.
The room for investment in the crypto world is increasing day by day, and you can make the best out of it by investing in these undervalued cryptocurrencies.
Data is accurate as of Jan. 21, 2022 and subject to change.
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