The ache commerce has been an unwelcome sight throughout the cryptocurrency market for the reason that begin of 2022 and over the previous 24 days Bitcoin (BTC) and the altcoin costs have drifted, main some analysts to counsel {that a} bear market is at hand.
Despite merchants’ concern that one other prolonged crypto winter could possibly be beginning, it occasions like these when traders can capitalize on nice alternatives to select up basically sound cryptocurrencies at a reduction.
Crypto Fear & Greed Index. Source: Alternative.me
In that vein, right here’s a better take a look at a number of tasks with sturdy fundamentals and a confirmed use case that could possibly be good candidates for accumulation through the present market correction.
Polygon (MATIC)
The Ethereum (ETH) layer-two scaling answer Polygon (MATIC) is at the moment down 50.76% from its all-time excessive of $2.92 which was established on Dec. 27, 2021.
MATIC/USDT 1-day chart. Source: TradingView
Polygon noticed an amazing quantity of progress and adoption over the course of 2021 as a result of its compatibility with Ethereum and low transaction prices made it a vacation spot for customers and protocols that have been on the lookout for a method to stay on the Ethereum community and keep away from the excessive price of transactions.
Total MATIC wallets over time. Source: Dune Analytics
The community is able to internet hosting all method of decentralized functions together with lending protocols like AAVE, decentralized exchanges like Uniswap or gaming and nonfungible token tasks like Aavegotchi.
With the capabilities and remaining date for the rollout of Eth2 nonetheless unknown, layer2 options like Polygon are prone to proceed to see elevated engagement as customers search lower-fee transactions.
Fantom (FTM)
Fantom (FTM) is a layer-one blockchain protocol that additionally rose in prominence over 2021 as its low charge setting and Ethereum Virtual Machine (EVM) Compatibility helped appeal to new customers and protocols to the community.
FTM/USDT 1-day chart. Source: TradingView
Data from Cointelegraph Markets Pro and TradingView reveals that the value of FTM is at the moment down 36.3% from its December highs and buying and selling at a worth of $2.15 on the time of writing.
The bullish case for FTM is backed by the continued rise whole worth locked (TVL) on the Fantom community regardless of the market-wide pullback, with knowledge from Defi Llama displaying that the Fantom TVL is at the moment at an all-time excessive of $12.07 billion.
Total worth locked on Fantom. Source: Defi Llama
When in comparison with competing networks corresponding to Solana (SOL) which has a TVL of $7.62 billion, Fantom holds extra worth and has not skilled any main community disruptions like Solana, but it trades at a big low cost when in comparison with the value of SOL.
TVL of #Fantom and #Solana are practically the identical now (10.67B vs 10.31B)
Buy $FTM now like purchase $SOL at 23$#fantomseason #solanawinter #fantomnews pic.twitter.com/eeUop6biZJ
— Fantom News (@fantomnews) January 15, 2022
With the present worth of SOL standing at roughly $90, the value of FTM would must be $18.10 to have an identical market cap, suggesting that Fantom is undervalued relative to its layer-one opponents and has the potential to shut that hole as 2022 progresses.
Polkadot (DOT)
Another token that would doubtlessly be in an excellent accumulation zone is Polkadot (DOT), a sharded multi-chain protocol whose purpose is to facilitate the cross-chain switch of any knowledge or asset sorts throughout a number of blockchain networks.
Data from Cointelegraph Markets Pro and TradingView reveals that the value of DOT has been on the decline since early November 2021 because the token underperformed its cohort of layer-one tasks presumably as a result of lack of a functioning bridge to Ethereum.
DOT/USDT 1-day chart. Source: TradingView
This all modified on Jan. 11 when Polkadot’s Moonbeam (GLMR) parachain formally launched and established the primary cross-chain bridge for the Polkadot community. As of Jan. 24, Moonbeam has processed greater than 1,329,000 transactions and helps greater than 700 ERC-20 tokens.
As different parachains formally launch on Polkadot within the months forward, DOT has the potential to see an increase in demand and token worth as customers look to become involved with the Polkadot community.
Polkadot ecosystem. Source: PolkaProject
Curve (CRV)
When it involves the growing significance of the stablecoins within the crypto market, Curve DAO token has emerged as one of the crucial sought-after tokens by traders and protocols who’ve been vying for management of governance on the platform.
CRV/USDT 1-day chart. Source: TradingView
After hitting a file excessive of $6.80 on Jan. 4, the value of CRV has fallen 60% and now trades at $2.76 in response to knowledge from TradingView.
Even with the drop in CRV worth, the continued ‘Curve Wars’ counsel that demand for the token is prone to rise as soon as the present weak point available in the market subsides as decentralized finance tasks try and accumulate governance powers over the Curve ecosystem.
At the time of writing, a complete of 49% of the circulating provide of CRV is locked in veCRV, the voting token for the Curve protocol.
Percentage of CRV tokens locked on Curve. Source: Dune Analytics
Related: Does a Fed digital greenback go away any room for crypto stablecoins?
Frax Share (FXS)
Another protocol that appears to play a bigger position within the stablecoin sector is Frax Share (FXS), the primary fractional-algorithmic stablecoin system within the crypto sector that started to realize traction close to the top of 2021.
FXS/USDT 4-hour chart. Source: TradingView
The protocol’s FRAX stablecoin has emerged as a fan favourite of the DeFi crowd largely because of its decentralized nature in a subject dominated by centralized tasks like Tether (USDT) and USD Coin (USDC).
As a results of its adoption, the entire quantity of FRAX transacted has risen over the previous six months and is at the moment at an all time excessive of $6.3 billion.
FRAX month-to-month quantity. Source: Dune Analytics
FXS’s bullish momentum is backed by a steadily growing whole worth locked, which elevated by 30.53% over the previous week and 86.9% during the last month to hit a file excessive of $2.28 billion on Jan. 24. This climb to a file TVL comes at the same time as the costs of practically each different asset fell throughout the crypto market.
Total worth locked on Frax Share. Source: Defi Llama
With FRAX now being adopted throughout DeFi by customers on the lookout for extra decentralized stablecoin choices, FXS may likewise see a rise in demand and token worth because the significance of dependable stablecoin protocols intensifies.
The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Every funding and buying and selling transfer includes danger, you need to conduct your personal analysis when making a call.
