As of March 2024, there are over 23,000 cryptocurrencies in existence. Newcomers to the crypto market often need help identifying the most convenient coins and tokens to invest in this universe of digital assets. In contrast, seasoned crypto investors know that undervalued cryptocurrencies might represent profitable long-term investments. So, identifying undervalued cryptocurrencies is paramount to deciding which coins and tokens you should get and hold for significant future returns.
To simplify things, we have compiled a list of the top five undervalued ‘old’ cryptocurrencies aside from Bitcoin and Ethereum. You can get these cryptocurrencies most conveniently on LetsExchange.io.
What Is an Undervalued Cryptocurrency?
An undervalued cryptocurrency is any digital coin or token bought and sold on the market at a lower price than its probable worth. In other words, we have an undervalued cryptocurrency when the trading market has not yet realized its actual price, leading to lower demand. However, when the market builds confidence in a coin and appreciates its utility, the demand, and by extension, the price of an undervalued cryptocurrency, can significantly increase within a relatively short time.
Although new cryptocurrencies in the market are the most susceptible to being undervalued, ‘old’ coins like Bitcoin and Ethereum can also suffer from the same problem. So, below, you can find a list of ‘old’ cryptocurrencies that might be excellent investment opportunities. Remember that investing in undervalued cryptocurrencies works best if you hold your assets for a long time, typically not less than a few years.
1. Decentraland (MANA)
Decentraland is a virtual reality platform on the Ethereum blockchain, allowing users to create, experience, and monetize content and applications. MANA is an ERC-20 token, one of the two tokens the Decentraland platform uses (the other token being LAND). MANA was launched following an initial coin offering (ICO) in 2017. Users can buy virtual plots of land using this token.
MANA performed well throughout 2021, reaching its all-time high price of $5.9 on November 25. Since then, this token has progressively lost value. As of March 18, 2024, it traded at about $0.6. However, this undervalued token is poised to resurge as virtual worlds become more popular. Sound utility and a credible development team contribute to the potential for growth in the coming years.
2. The Sandbox (SAND)
The Sandbox is a blockchain-based virtual world where users can create, build, buy, and sell digital assets. It was launched in 2011 and has evolved into one of the most successful gaming platforms, combining the powers of decentralized autonomous organizations (DAOs) and non-fungible tokens (NFTs). The Sandbox is based on a Play-to-Earn (P2E) model, allowing gamers to monetize their in-game creations.
The Sandbox utilizes the SAND utility token to pay for transactions on the platform. This token has performed similarly to Decentraland’s MANA token, reaching its all-time high of $8.4 on November 25, 2021. Coincidentally, it has progressively lost value and traded at about $0.6 as of March 18, 2024. Although currently undervalued, the SAND token has solid potential to significantly increase its price in the future as virtual worlds become mainstream.
3. ApeCoin (APE)
ApeCoin is an ERC-20 governance and utility token used within the APE Ecosystem. This coin was created by the same team behind Bored Ape Yacht Club, one of the most successful NFT collections. ApeCoin aims to empower and incentivize a decentralized community building at the forefront of web3.
ApeCoin hit the trading market on March 17, 2022, at an opening price of $8.5. On the same day, this token reached its all-time high of $39.4. However, the price of this crypto asset plummeted in the following two months. As of March 18, 2024, APE traded at approximately $2. Many experts think this token is significantly undervalued and might resurge in the coming years.
4. The Graph (GRT)
The Graph is an indexing protocol launched in late 2020. It is used to query data for networks like Ethereum and InterPlanetary File System (IPFS), powering many applications in the web3 ecosystem. The Graph facilitates extracting data from different blockchains, which has been difficult. The Graph Token (GRT) ensures the economic security of The Graph Network and the integrity of the data being queried.
The GRT’s opening price was $0.12 on December 17, 2020. This token rapidly increased its value, reaching its all-time high of $2.9 on February 12, 2021. However, GRT lost value throughout 2021 and the first half of 2022. As of March 18, 2024, GRT traded at about $0.4. However, GRT is currently highly undervalued, considering this token's utility. As The Graph starts supporting indexing data from more networks, the GRT price might dramatically increase.
5. Algorand (ALGO)
Algorand is an autonomous, decentralized blockchain supporting various applications. The Algorand mainnet went live in June 2019. This network was initially designed to be a competitor to Bitcoin regarding speed and efficiency. Applications on Algorand have been demonstrated to be secure, scalable, and efficient.
Algorand held an initial ICO for its ALGO cryptocurrency in June 2019, with each coin selling at $2.4. On June 20 of that year, ALGO began to trade in the open market at $3.15. On the same day, it reached its all-time high of $3.3. As of March 18, 2024, ALGO traded at $0.25. However, although it is less popular, Algorand has proved to be a good competitor to Bitcoin. When the market realizes the value of this network, the ALGO price might significantly increase.
Conclusion
Undervalued cryptocurrencies might be excellent long-term investments. However, with thousands of different crypto assets in the market, it can be challenging to identify undervalued coins. We have listed five of the top promising undervalued coins and tokens. Hence, you can pick any of them to add to your investment portfolio. But before investing, it would be better to research the coin you are interested in thoroughly. Remember, undervalued cryptocurrencies work best as long-term investment vehicles.
Disclaimer
Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.