Pain trading has been an unwelcome sight in the cryptocurrency market since early 2022 and over the past 24 days Bitcoin (BTC) and altcoin prices have drifted, leading some analysts to suggest that a bear market is at hand.
Despite traders worrying that another prolonged crypto winter could begin, it is at times like these that investors can take advantage of great opportunities to buy fundamentally sound cryptocurrencies at a discount.
In that vein, here’s a closer look at several projects with strong fundamentals and a proven use case that could be good candidates for accumulation during the current market correction.
Polygon saw tremendous growth and adoption during 2021 as its compatibility with Ethereum and low transaction costs made it a destination for users and protocols looking for a way to stay on the Ethereum network and avoid high transaction costs. .
The network is capable of hosting all sorts of decentralized applications, including lending protocols like Aave (AAV), decentralized exchanges like Uniswap, or non-fungible gaming and token projects like Aavegotchi.
With Eth2’s capabilities and final rollout date still unknown, layer-two solutions such as Polygon will likely continue to see increased engagement as users seek lower-cost transactions.
Fantom (FTM) is a layer-1 blockchain protocol that also rose to prominence in 2021, as its low-cost environment and Ethereum Virtual Machine (EVM) compatibility helped attract new users and protocols to the network.
FTM’s bullish case is supported by the continued rise in Total Value Locked (TVL) on the Fantom Network despite the market-wide pullback, with data from Defi Llama showing that the Fantom TVL is currently at an all-time high of $12.07 billion.
Compared to competing networks such as Solana (FLOOR) which has a TVL of $7.62 billion, Fantom holds more value and hasn’t experienced major network disruptions like Solana, but it is trading at a significant discount to SOL’s price.
— Fantom News (@fantomnews) January 15, 2022
With SOL’s current price standing at around $90, FTM’s price would need to be $18.10 to have a matching market cap, suggesting that Fantom is undervalued compared to its top tier competitors and has the potential to close that gap as 2022 progresses. .
Another token that could potentially be in a good accumulation zone is Polkadot (POINT), a shared multi-chain protocol whose goal is to facilitate cross-chain transfer of any type of data or asset across multiple blockchain networks.
Data from Cointelegraph Markets Pro and TradingView shows that the price of DOT has been falling since early November 2021 like the token underperformed its tier one project cohort possibly due to the lack of a working bridge to Ethereum.
Everything changed on January 11 when Polkadot’s Parachain Moonbeam (GLMR) was 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.
As more parachains officially launch on Polkadot in the coming months, DOT has the potential to see an increase in demand and token price as users seek to engage with the Polkadot network.
Regarding the growing importance of stablecoins in the crypto market, the Curve DAO token has become one of the most sought-after tokens by investors and protocols vying for governance control over the platform. .
After hitting an all-time high of $6.80 on Jan. 4, the price of CRV has fallen 60% and is now trading at $2.76, according to data from TradingView.
Even with the price of CRV falling, the ongoing “Curve Wars” suggest that demand for the token is likely to increase once the current market weakness fades as decentralized finance projects attempt to accumulate governance powers over the Curve ecosystem.
As of this writing, a total of 49% of the circulating CRV supply is locked into veCRV, the voting token for the Curve protocol.
Frax shares (FXS)
Another protocol that seems to be playing a bigger role in the stablecoin industry is Frax Share (FXS), the first fractional algorithmic stablecoin system in the crypto industry that started gaining traction towards the end of 2021.
The protocol stablecoin FRAX has become a fan-favorite of the DeFi crowd largely thanks to its decentralized nature in a field dominated by centralized projects like Tether (USDT) and USD coins (USDC).
Following its adoption, the total volume of FRAX transactions has increased over the past six months and is currently at an all-time high of $6.3 billion.
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 past month to a record high of 2.28 billion on January 24. This rise to a record TVL comes even as the prices of almost every other asset have fallen in the crypto market.
With FRAX now being embraced in DeFi by users looking for more decentralized stablecoin options, FXS could also see an increase in demand and price for tokens as the importance of reliable stablecoin protocols grows.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.