Here’s 5 altcoins to study as crypto prices drop close to a 1-year low

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The pain trade has been an unwelcome sight through the cryptocurrency market since the beginning of 2022 and over the past 24 days Bitcoin (BTC) and high coin prices have drifted, leading some analysts to suggest that a bear market is at hand.

Despite the concern of traders that another extended cryptocurrency could begin, there are times like these when investors can take advantage of great opportunities to take fundamentally sound cryptocurrencies with a discount.

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Cryptical Fear and Greed Index. Source: Alternative.me

In that vein, here’s a closer look at several projects with strong foundations and a proven use case that could be good candidates for accumulation during the current market correction.

Polygon (MATIC)

The Ethereum (ETH) Layer-Two-Scale Solution Polygon (MATIC) is currently down 50.76% from its all-time high of $ 2.92, which was set for December 27, 2021.

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MATIC / USDT 1-day chart. Source: TradingView

Polygon has seen tremendous growth and adoption in 2021 as its compatibility with Ethereum and low transaction costs have made it a target for users and protocols looking for a way to stay on the Ethereum network and avoid the high cost of transactions. .

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Whole MATIC wallets over time. Source: Dune Analytics

The network is capable of hosting all kinds of decentralized applications including loan protocols like AAVE, decentralized exchanges like Uniswap or gaming, and unbreakable token projects like Aavegotchi.

With the capabilities and end date for the launch of Eth2 still unknown, layer2 solutions like Polygon are likely to continue to see increased engagement as users look for lower fee transactions.

Ghost (FTM)

Fantom (FTM) is a single-layer blockchain protocol that has also risen in prominence over 2021, as its low-cost environment and Ethereum Virtual Machine (EVM) Compatibility have helped attract new users and protocols to the network.

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FTM / USDT 1-day chart. Source: TradingView

Data from Cointelegraph Markets Pro and TradingView shows that the price of FTM is currently down 36.3% from its December highs and trading at a price of $ 2.15 at the time of writing.

The bullish case for FTM is supported by the continued rise in total locked value (TVL) on the Phantom network despite the worldwide market withdrawal, with data by Defi Llama showing that the Fantom TVL is currently at an all-time high of $ 12.07 billion.

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Total value locked on Fantom. Source: Defi Llama

Compared to competing networks like Solana (SOL), which has a $ 7.62 billion TVL, Fantom has more value and has not experienced major network disruptions like Solana, yet it is trading at a significant discount compared to the price of SOL.

With the current price of SOL standing at around $ 90, the price of FTM should be $ 18.10 to have a compatible market cap, suggesting that Fantom is undervalued relative to its single-tier competitors and has the potential to close that gap as 2022 progresses. .

Polka Dot (POINT)

Another token that could possibly be in a good accumulation zone is Polkadot (DOT), a shared multi-chain protocol that aims to facilitate the cross-chain transfer of any data or assets across multiple blockchain networks.

Data from Cointelegraph Markets Pro and TradingView shows that the price of DOT has been declining since early November 2021 as the token undercut its cohort of single-tier projects possibly due to the lack of a functional bridge to Ethereum.

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DOT / USDT 1-day chart. Source: TradingView

All that changed on January 11 when the Polkadot Moonbeam (GLMR) parachute officially launched and established the first cross-chain bridge for the Polkadot network. As of January 24, Moonbeam has processed more than 1,329,000 transactions and supports more than 700 ERC-20 tokens.

As other parachutes officially launch on Polkadot in the coming months, DOT has the potential to see an increase in demand and a token price as users seek to get involved with the Polkadot network.

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Polkadot ecosystem. Source: PolkaProject

Curve (CRV)

When it comes to the growing importance of stalcoins in the crypto market, Curve DAO token has emerged as one of the most sought after tokens by investors and protocols competing for control of dominance on the platform.

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CRV / USDT 1-day chart. Source: TradingView

After hitting a record high of $ 6.80 on January 4, the price of CRV fell 60% and is now trading at $ 2.76 according to TradingView data.

Even with the fall in CRV price, the ongoing “Curve Wars” suggests that demand for the token is likely to increase once the current weakness in the market calms down as decentralized financial projects attempt to accumulate control over the Curved ecosystem.

At the time of writing, a total of 49% of CRV’s circulating supply is locked into veCRV, the voting token for the Curve Protocol.

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Percentage of CRV tokens locked on Curve. Source: Dune Analytics

Related: Does the Fed’s digital dollar leave room for cryptocurrencies?

Frax Stock (FXS)

Another protocol that seems to play a bigger role in the stability sector is Frax Share (FXS), the first fractional algorithmic stable system in the crypto sector that began to gain traction near the end of 2021.

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FXS / USDT 4-hour chart. Source: TradingView

The protocol’s FRAX stability has emerged as a fan of the DeFi crowd largely thanks to its decentralized nature in a field governed by centralized projects such as Tether (USDT) and USD Coin (USDC).

As a result of its adoption, the total volume of FRAX traded has increased over the past six months and is currently at an all-time high of $ 6.3 billion.

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FRAX monthly volume. Source: Dune Analytics

FXS’s bullish momentum is supported by a steadily rising total locked value, which rose 30.53% over the past week and 86.9% over the last month to reach a record high of $ 2.28 billion on January 24th. This climb to record TVL is even coming. as the prices of almost every other asset have fallen through the crypto market.

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Total value locked on Frax Share. Source: Defi Llama

With FRAX now being adopted through DeFi by users looking for more decentralized stability options, FXS could likewise see an increase in demand and a symbolic price as the importance of reliable stalcoin protocols intensifies.

The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves risk, you need to do your own research when deciding.