Now that the crypto market is living through its bearish cycle, rumors such as “Bitcoin is dead” or “we should get ready for a long winter” are filling news feeds all over the Internet.
One way or another, bearish periods are always replaced by bull market trends, when the leading cryptos skyrocket, pulling all other market assets upward. This is always the time when pessimistic moods change for rather more encouraging ones until the next downtrend, of course, and market sentiments start changing all over again.
Amid this bearish period, we suggest you pay attention to some up-and-coming projects to invest in because right now, it seems to be the best time for buying coins at low prices before the next bullish wave arrives. So, here we go. Let’s begin with the reasons why the market actually dropped.
What Caused the Collapse?
The reasons for the market collapse:
- The Fed’s actions intensified capital outflows from high-risk assets;
- Large companies that own crypto have fallen into debt, which has also caused some concern.
- An end to “free” money from the government. During the Covid pandemic, the USA and governments of Europe issued significant amounts of money, which many people directed into crypto investments.
- In May 2022, LUNA and UST crashed, creating panic in the market.
- A “stuck transaction causing a backlog” on Binance resulted in a temporary halt of BTC withdrawals from the exchange — another factor that impacted the BTC price.
History Repeats Itself
If we look back at how many times the whole crypto market has dropped in the past, it becomes clear that the present situation is also temporary. The current drop was predicted back in 2020-2021. This is because digital assets were used for protection against inflation. Besides, the major world regulators’ relatively “soft” position regarding crypto contributed to the market’s development.
When Bitcoin dropped, it, as is always the case, caused a domino effect. Investors started getting rid of their assets and selling their investment portfolios en masse. However, for many, this market drop is an opportunity to pick promising crypto assets and purchase them at lower prices, and smart investors clearly see this opportunity.
To pick an up-and-coming asset to invest in this summer, pay attention to tokens with the highest growth potential. And no, we are not hinting at BTC or ETH. If you dig deeper, you will see that when market leaders demonstrate a fivefold price growth, smaller assets can actually give returns as much as 10 or 20 times higher.
How to Carry out an Analysis on Your Own?
Check out the project (asset) according to the following key points:
- What current problem does the project solve? What is its essence? Where is its asset used, and for what purpose?
- What consensus algorithm underlies the asset? Is the token emission limited? Look for this information on credible platforms like coinmarketcap.com.
- Does the project have social networks, and are there regular publications and updates? Check if there is an interaction between the project and the community. Is social media activity continually maintained? The service coinsguru.io will help you evaluate a project’s Twitter activity.
- Find out who the project’s early investors are. Discover whether there are any prominent players and well-known figures in the industry — this is a sign that the project is trustworthy.
- Look up what other companies the project invests in and collaborates with.
- On coinmarketcal.com, you can find information about the project’s events and upcoming plans, important news, etc.
- Check the frequency of news posting and feedback on cryptopanic.com.
- Evaluate the news schedule by technical analysis.
TOP 5 Altcoins to Buy
Polygon
Reasons to invest in this altcoin:
- Polygon enables the development of Ethereum-compatible blockchain projects. Since Ethereum is one of the top cryptos, it also contributes to the growth of the Polygon platform. The Plasma technology underlying the project allows transactions to be processed outside the Ethereum blockchain and completed in the ETH blockchain.
- Token emission is limited to 10 billion. 8 billion tokens have already been issued. Polygon uses a PoS consensus algorithm.
- The project’s Twitter account is active. Polygon has an impressive investment portfolio, so the developers are prepared for serious and long-term work. We noticed some large companies among Polygon investors (Coinbase, Sequoia Capital, AU21), which is a good sign.
- Polygon has several significant events scheduled. Every new event can spur the growth of the exchange rate.
- News is posted almost daily, and the project has a good level of recognition.
NEAR
Why buy NEAR:
- It is a decentralized platform where developers can deploy their own dApps. It has an impressively high throughput and the Nightshade sharding mechanism at its core. In addition, the NEAR network has its own NFT marketplace, which is showing good progress.
- Limited emission (max. 1 billion tokens), over 70% of which have already been issued. The PoS consensus protocol allows stake tokens (or “wallet mining”).
- The project’s Twitter account is quite active.
- NEAR investors include Coinbase and FTX. NEAR also invests in other projects.
- Several significant events have been scheduled for summer. The development team is actively working on the project’s growth and recognition in the market.
Cardano
Why invest in Cardano:
- The project made it to the TOP-10 in terms of capitalization. The platform has an incredibly high throughput.
- Emission is limited to 45 billion coins. Over 75% have already been issued. The project runs on a PoS consensus and staking is available.
- The project’s Twitter profile is active and engages with the community.
- The project has a top marketing campaign and has released a lot of news and updates in the past. Several large events have been planned for the near future.
Algorand
Reasons why Algorand deserves your attention:
- Limited token emission (10 billion), 69% of which have already been issued. Staking is available and the project operates on a PoS.
- The platform combines scalability, decentralization, and security in one blockchain. In addition, Algorand provides high throughput.
- Adequate Twitter activity and daily news publications.
- 6 investors — a combination of funds and private investors.
- There don’t seem to be many events scheduled for the near future.
ATOM
Key features:
- The number of tokens is unlimited. More than 280 million tokens are currently in circulation. Staking is available and the project is based on a PoS algorithm.
- The project has an active Twitter account.
- There are currently 11 investors.
- The development team is planning 4 events by the end of this year. News and updates are rolled out regularly, and the project is in the public eye.
Wrapping up
The above projects have every chance of success in the medium and long term. However, it is important to note that this article is not financial advice or a guide to action.You can carry out your own analysis of any crypto project you wish and check it against the crucial points we have listed in this article. Of course, it will take some time, but it will also allow you to evaluate the project objectively without having to go deep into technical details or whitepapers.
