Even those who aren’t caught up in the crypto hype know that Bitcoin and Ethereum run the show in the cryptocurrency space. Their dominance is so strong and has been going on for so long – in Bitcoin’s case, since the very beginning of the crypto industry – that is hard to imagine they could ever be dethroned. As a result, many investors never bother to look beyond the two leading coins, despite the fact that the market has grown significantly over the past years and is now teeming with numerous and diverse crypto projects.
The case for investing in underrated cryptos
It makes perfect sense for traders and investors to stick to established cryptos. These have larger market capitalization, boast real-world use cases and have already weathered several market downturns, which means they are much more resilient and make for a safer investment in a market where extreme price fluctuations, regulatory uncertainty and the risk of major losses are considered normalcy.
However, focusing solely on this powerful crypto duo is quite limiting and can cause one to miss out on potentially lucrative investment opportunities since many newer projects present remarkable growth potential. So, while it’s understandable that people want to learn how to buy ETH or BTC and overlook other options, it’s important to draw attention to promising cryptos. Undervalued crypto projects also have lower barriers to entry and can also set you up for more substantial earnings when they make their breakthrough.
Besides, if you want to reduce risks and enhance profit potential when investing, it’s important to diversify not only among different industries, asset classes and geographical regions but also within the same asset category. So, if you want to build a stronger portfolio, here are some less popular digital currencies that are worth checking out, in no particular order.
Solana (SOL)
Solana is not exactly a no-name in the crypto industry, but it’s certainly not in the same league as Bitcoin and Ethereum either. Most crypto enthusiasts are familiar with it, but for the wider audience it remains a largely unknow crypto, so let’s make the introduction.
Solana was launched in 2020 as an independent layer 1 blockchain with smart contract functionality, aiming to facilitate fast and efficient transactions. Given the project’s vision and purpose, many have compared Solana to altcoin leader Ethereum and even dubbed it the Ethereum Killer.
Far from posing a real threat to Ethereum, Solana does boast notable capabilities, including fast transaction speed, low fees and scalability potential, which have enabled the development of a thriving dApp ecosystem around the network. The team behind the project states that Solana has the ability to process as much as 65,000 transactions per second thanks to its innovative Proof-of-History (PoH) protocol.
These blockchain’s strong fundamentals have pushed SOL, its native token, up in the rankings, making it the fifth most valuable digital asset. SOL is mainly used for staking purposes, to validate transactions on the network, and to pay network fees.
Polygon (MATIC)
The project was launched as Matic Network in 2017 and later rebranded as Polygon in 2021. Its story is tied to that of Ethereum, being designed as a layer 2 solution meant to reduce the transaction burden on the popular blockchain and thus enhance its processing capabilities.
Polygon functions as a scaling solution by enabling the creation of additional Ethereum-compatible sidechains that can take over the task of executing transactions which are later transferred to the main Ethereum blockchain. This addresses congestion risks, while also giving users the possibility to benefit from lower fees and fast speed when utilizing Ethereum’s resources.
Being intrinsically connected to Ethereum, Polygon borrows from the platform’s security and reputation, which also enhances the appeal of its native token MATIC. While MATIC only ranks 64th in the crypto hierarchy, the increasing number of projects deployed on Polygon as ell as its innovative features and strong value proposition make it a noteworthy contender.
Cardano (ADA)
Many of the crypto ventures launched after Bitcoin and Ethereum drew inspiration from these projects while trying to improve on their capabilities and functionalities. That’s also the case with Cardano, a highly innovative blockchain platform, based on a proof-of-stake (PoS) mechanism, that was established in 2017 by one of the developers who helped build Ethereum.
The vision behind the project was to provide a solution to the limitations of first-generation blockchain Bitcoin, and second-generation blockchains like Ethereum. To achieve this goal, Cardano introduced a unique Proof of Stake (PoS) consensus protocol, also known as Ouroboros, and several other features such as layer 2 solution Hydra and the Hard Fork Combinator which were rolled out with later upgrades.
The blockchain’s contribution to industry development and the support it receives from the community fuel the belief that the native Cardano cryptocurrency token ADA might be poised for more substantial appreciation in the future.
Dogecoin (DOGE)
Contrary to what you might have heard, meme coins are not extinct. Sure, the hype has died down, as expected, but some of these humorous tokens are still alive and well, and Dogecoin is the best example in this respect.
Dogecoin was the crypto that launched the meme coin movement back in 2013 and remains to this day the most valuable and reputable asset in this category. Despite its unassuming beginnings, Dogecoin came to people’s attention in 2021 after Elon Musk made a remark about it on Twitter.
Over the years, Dogecoin developed into a trustworthy blockchain platform, revealing sound values and motivations. As the network’s creators explain, the intention was not just to mock digital currencies but also to create a crypto that could make it easier for beginners to enter the crypto space.
There are obviously many other digital currencies on the market that show great potential and might take off in the years to come. Notable mentions include XRP (XRP), TRON (TRX), Polkadot (POL), Litecoin (LTC), Graph (GRT), and the list could go on. So, make sure to do your research and scour the market for new opportunities.