5 altcoins to study as cryptocurrency prices fall to near 1-year lows

Since the beginning of 2022 and the past 24 days Bitcoin (bitcoin) and altcoin prices have drifted, leading some analysts to believe a bear market is imminent.

While traders are concerned that another extended crypto winter may begin, at times like this, investors can take advantage of great opportunities to buy fundamentally sound cryptocurrencies at discounted prices.

Crypto Fear and Greed Index. Source: Alternative.me

In this context, here is a closer look at several projects with strong fundamentals and proven use cases that could be good candidates for accumulation during the current market correction.

Polygon (MATIC)

Ethereum (Ethereum) second layer scaling solution Polygon (MATIC) is currently down 50.76% from its all-time high of $2.92 set on December 27, 2021.

MATIC/USDT 1-day chart. Source: TradingView

Polygon has seen tremendous growth and adoption during 2021 as its compatibility with Ethereum and low transaction costs make it a destination for users and protocols looking to stay on the Ethereum network and avoid high transaction costs.

The total number of MATIC wallets over time.Source: Dune Analysis

The network is capable of hosting a variety of decentralized applications, including lending protocols such as AAVE, decentralized exchanges like Uniswap or games and non-fungible token projects like Aavegotchi.

As the features and final date of Eth2’s rollout are still unknown, layer2 solutions like Polygon will likely continue to increase engagement as users seek lower-fee transactions.

Phantom (FTM)

Fantom (FTM), a layer-one blockchain protocol, is also gaining prominence in 2021 as its low-fee environment and Ethereum Virtual Machine (EVM) compatibility help attract new users and protocols to the network.

FTM/USDT 1-day chart. Source: TradingView

data from Cointelegraph Market Pro and Transaction view Show FTM’s price is currently down 36.3% from its December high and is trading at $2.15 at the time of writing.

Despite a market-wide pullback, total value locked (TVL) on the Fantom network continues to rise, supporting a bullish case for FTM, where data Data from Defi Llama shows that Fantom TVL is currently at an all-time high of $12.07 billion.

Total value locked by Fantom. Source: Defi Llama

Compared to competing networks such as Solana (Sol) with a TVL of $7.62 billion, Fantom holds a higher value and hasn’t experienced any major network outages like Solana, but it’s trading at a significant discount compared to SOL’s price.

SOL is currently around $90 and FTM needs to hit $18.10 to have a matching market cap, suggesting that Fantom is undervalued relative to its Tier 1 rivals and has the potential to shrink that as 2022 progresses. gap.

Polkadot (DOT)

Another coin that might be in a good accumulation zone is Polkadot (point), a sharded multi-chain protocol whose goal is to facilitate the cross-chain transfer of any data or asset type across multiple blockchain networks.

From Cointelegraph Markets Pro and Transaction view The price showing DOT as a token has been falling since early November 2021 Underperforming its first tier projects Possibly due to the lack of an efficient bridge to Ethereum.

DOT/USDT 1-day chart. Source: TradingView

That all changed on January 11, when Polkadot’s Moonbeam (GLMR) parachain officially launched and established the first cross-chain bridge for the Polkadot network. As of January 24, Moonbeam has processed over 1,329,000 transactions and supports over 700 ERC-20 tokens.

With other parachains officially launching on Polkadot in the coming months, DOT is likely to see demand and token prices increase as users look to participate in the Polkadot network.

Polkadot ecosystem. Source: PolkaProject

Curve (CRV)

When it comes to the growing importance of stablecoins in the crypto market, the Curve DAO token has become one of the most sought-after tokens among investors and protocols, who have been battling for governance control on the platform.

CRV/USDT 1-day chart. Source: TradingView

After hitting an all-time high of $6.80 on Jan. 4, the price of CRV has fallen 60% and is currently trading at $2.76, according to TradingView.

Even as CRV prices fall, the ongoing “curve wars” suggest that demand for the token could rise once the current market weakness subsides as decentralized finance projects try to accumulate governance power on the Curve ecosystem.

At the time of writing, a total of 49% of the circulating supply of CRV is locked in veCRV, the voting token of the Curve protocol.

The percentage of CRV tokens locked on Curve.Source: Dune Analysis

related: Does the Federal Reserve’s Digital Dollar Leave Any Room for Crypto Stablecoins?

Frax Shares (FXS)

Another protocol that looks to play a bigger role in the stablecoin space is Frax Share (FXS), the crypto space’s first fractional algorithmic stablecoin system that is starting to gain traction in late 2021.

FXS/USDT 4-hour chart. Source: TradingView

The protocol’s FRAX stablecoin has become a fan favorite among the DeFi crowd, thanks in large part to its decentralized nature in a space dominated by centralized projects like Tether (USDT) and dollar coins (USD/USD).

Thanks to its adoption, FRAX’s total trading volume has increased over the past six months and is now at an all-time high of $6.3 billion.

FRAX monthly trading volume.Source: Dune Analysis

FXS’s bullish momentum is supported by a steady increase in total locked value, which has grown 30.53% over the past week and 86.9% over the last month, reaching an all-time high of $2.28 billion on January 24. Even reaching record TVLs fell across the crypto market along with the price of almost every other asset.

The total value locked in Frax Share. Source: Defi Llama

As users looking for a more decentralized stablecoin option now adopt FRAX in DeFi, FXS is also likely to see an increase in demand and token prices as the importance of a solid stablecoin protocol grows.

The views and opinions expressed here are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.