Cryptos have come under significant pressure since May. Short-term profit-taking is part of what’s behind the down leg in prices. Additionally, the recent announcement banning crypto mining in China has exacerbated market swings. Furthermore, the environmental cost of a large number of digital currencies has posed questions as to what to expect from this asset class moving forward.
On the other hand, though, a number of altcoins have still been gaining popularity among more traditional investors. They appreciate that a number of these coins have solid technology that makes them attractive for decentralized finance (DeFi) applications. In fact, holding some of these cryptos could be similar to investing in various Internet protocols in the 1990s. Despite the decline in crypto prices since May, many names are still up double or even triple digits year-to-date (YTD). For instance, Bitcoin (CCC:BTC-USD) is up about 18% YTD, Ethereum (CCC:ETH-USD) is up over 200% and Dogecoin (CCC:DOGE-USD) is up almost 4000%.
Of course, with thousands of names to research, the cryptocurrency world can feel confusing. So, today’s article will introduce several cryptos that offer better value following the recent price decline. In addition to altcoins, I will also discuss two exchange-traded funds (ETFs) that deserve to be on your radar. These ten crypto names include:
- Algorand (CCC:ALGO-USD)
- Ankr (CCC:ANKR-USD)
- Bitcoin Cash (CCC:BCH-USD)
- Cardano (CCC: (CCC:ADA-USD)
- DigiByte (CCC:DGB-USD)
- Polkadot (CCC:DOT-USD)
- Tron (CCC:TRX-USD)
- VeChain (CCC:VET-USD)
- Amplify Transformational Data Sharing ETF (NYSEARCA:BLOK)
- VanEck Vectors Digital Transformation ETF (NASDAQ:DAPP)
Interested readers should keep in mind that altcoin prices are significantly more volatile than the stock market. Therefore, as an asset class, they may not be suitable for everyone.
Cryptos to Buy: Algorand (ALGO-USD)
52-week range: $0.222124 – $1.824609
The first pick on this list of cryptos, Algorand was launched by Silvio Micali and supports a wide range of DeFi applications. In general, Bitcoin and other names suffer from slow transaction times. ALGO’s network, however, was set up to improve efficiency and speed up transactions.
In addition to low transaction fees, there is also no mining involved. Algorand is based on a pure-proof-of-stake (PPoS) protocol. In other words, all validators within the blockchain are known to one another. To create a new block, they agree on the next step. Research by Jing Chen of Stony Brook University highlights the following:
“Algorand dispenses with “miners” and requires only a negligible amount of computation […] Algorand guarantees the finality of a transaction the moment the transaction enters the ledger.”
ALGO-USD started 2021 at around 40 cents. Today, it trades for 92 cents. That is an eye-popping return of about 130%. However, in the past month, it is down around 3%. With a market capitalization of $2.88 billion, it is placed among the top 35 altcoins according to CoinMarketCap.
52-week range: $0.003208 – $0.205687
Next up on this list of cryptos, the Ankr token powers its namesake Web3 infrastructure platform. What is Web3? Basically, it’s the next generation of the internet wherein “data will be interconnected in a decentralized way […] Web 3.0 networks will operate through decentralized protocols — the founding blocks of blockchain and cryptocurrency technology.”
Furthermore, Ankr utilizes shared resources for blockchain node hosting solutions. As a result, developers and enterprise clients can deploy nodes at a cheaper price when compared to other cloud providers. In fact, the Ankr platform already has partnerships with names like Polkadot, Binance (CCC:BNB-USD) and many more.
ANKR-USD, the network’s Ethereum token, started 2021 around $0.008. Now it trades at $0.080, marking a return of about 904%. However, in the past month, it is down about 15%. With a market cap of $562 million, it currently ranks 105 among the altcoins on CoinMarketCap.
Cryptos to Buy: Bitcoin Cash (BCH-USD)
52-week range: $205.66 – $1,635.15
Designed in 2017, Bitcoin Cash functions as an electronic cash payment system to complete everyday transactions. Since it was created from a fork of Bitcoin, it shares many of the characteristics of BTC, including the proof-of-work (PoW) consensus algorithm.
What do I mean by “fork” here? Well, recent research by Nick Webb of the University of North Carolina School of Law points out that “A hard fork occurs when a portion of a blockchain’s users make a significant, permanent change to the underlying technical protocol, producing a divergent, parallel blockchain.” Yet, compared to Bitcoin, BCH has a larger block size in order to “increase a maximum block size to process more transactions than BTC.” Therefore, BCH transactions are faster and cheaper to complete than standard Bitcoin.
BCH-USD started 2021 around $343. Now, BCH-USD trades at about $523, making for a more than 52% return. Like others on this list of cryptos, though, it’s down about 12% in the past month. Finally, with a market cap of roughly $9.8 billion, it is among the top 15 altcoins on CoinMarketCap.
52-week range: $0.0761 – $2.4618
Unlike some of the other most ubiquitous cryptos right now, the Cardano network uses a proof-of-stake (PoS) consensus algorithm. The cryptocurrency also has a specific layout that helps improve upon the scaling issues associated with Bitcoin and the fees of Ethereum.
With a market cap of about $45.3 billion today, Cardano is currently the fifth largest crypto according to CoinMarketCap. ADA-USD started 2021 at around 18 cents. Now, this pick of the altcoins is trading at around $1.42. So far this year, it has returned a massive 709%. Yet, as more users who are building smart contracts put their faith in Cardano, the price will likely increase much more.
Lastly, though, ADA is also hailed as an eco-friendly crypto.
Cryptos to Buy: DigiByte (DGB-USD)
52-week range: $0.017776 – $0.182471
DigiByte, another proof-of-work (PoW) blockchain, is the next pick of the cryptos on this list and also prioritizes scalability and cybersecurity. In other words, this three-layered, open-source network aims to be much faster and safer than peers. DigiByte was launched by founder Jared Tate all the way back in early 2014.
To dive deeper, Jeremy Levine of the University of California, Santa Barbara remarks that DigiByte allows “mining with certain equipment […] which is intended to ensure no individual or oligopoly dominates the consensus model to rewrite the rules in their own favor.” Basically, this means that DigiByte is one of the more equitable cryptos, too.
This platform’s native coin, DGB-USD, started trading in 2021 at around $0.024. Now, it is hovering at $0.045. But crypto enthusiasts believe DGB could increase in value even more significantly as mining it is easy and can be done via typical computers. Today, its current market cap of about $659 million puts it among the leading 100 altcoins.
52-week range: $2.69 – $19.32
Polkadot, founded by the Web3 Foundation, is an open-source sharding multichain protocol. Furthermore, many analysts point out that “Sharding could be the key to allowing blockchains to scale, while maintaining the privacy and security features that make the distributed ledger technology so hot.”
Essentially, the Polkadot network facilitates the cross-chain transfer of any asset type as well as data (i.e., not just tokens). Therefore, a range of blockchains can become interoperable and exchange information among themselves. That interoperability is necessary for a fully decentralized web where new applications can be created easily.
DOT-USD, Polkadot’s native token, is used in transactions as well as for ensuring network governance. The crypto started 2021 at around $9.29. Now, DOT trades at $16.81. YTD, it has returned about 103%. However, in the past month, it’s down about 22%. Finally, with a market cap of roughly $16 billion, it is among the top 10 altcoins.
Cryptos to Buy: Tron (TRX-USD)
52-week range: $0.016769 – $0.179934
Founded in 2017 by Justin Sun, Tron is another blockchain-based smart contract platform. This pick on my list of cryptos uses a delegated-proof-of-stake (DPoS) consensus. The network’s aim is to build a free digital content entertainment system that would allow easy digital content sharing.
In particular, members of the gaming industry have been following Tron’s growth. This is because it could help creators connect with their audiences directly. The network’s native protocol token, TRX-USD is used for miner rewards, payments and voting rights.
TRX-USD started 2021 at around $0.027. Now, it trades at 0.065. YTD, it has returned about 143%. With a market cap of $4.67 billion, TRX is among the top 30 altcoins.
52-week range: $0.008917 – $0.278216
Next up on this list of cryptos, VeChain has been gaining traction lately as it develops numerous corporate partnerships. Essentially, VeChain aims to help improve logistics and supply-chain operations — an issue that has become even more important of late.
Furthermore, with its proof-of-authority (PoA) protocol, VeChain offers a high degree of scalability. Several of this name’s enterprise-level partners include Louis Vuitton (OTCMKTS:LVMHF), Renault (OTCMKTS:RNLSY) and Walmart (NYSE:WMT).
Lastly, this name’s native VET-USD currency began 2021 at around 2 cents. Today, it is a little shy of 9 cents. With a market cap of $5.46 billion, the digital token currently ranks as the 23rd largest cryptocurrency by market cap according to CoinMarketCap.
Cryptos to Buy: Amplify Transformational Data ETF (BLOK)
52-week range: $21.01 – $62.94
Dividend yield: 1.40%
Expense ratio: 0.71% per year
Out next choice on this list is not actually one of the cryptos, but rather an ETF that could appeal to a range of InvestorPlace readers. First listed in 2018, this fund invests in businesses that develop or utilize blockchain tech.
Further, some of BLOK’s top sectors (by weighting) are Software & Services (55.8%), Diversified Financials (18.3%), Semiconductor and Equipment (5.5%) and Retailing (4.8%). Today, the ETF accounts for net assets of about $1.17 billion and has 45 holdings. Additionally, the companies in the fund mainly come from North America (71.5%) and Asia-Pacific (20.9%).
Some of the leading names in BLOK are Microstrategy (NASDAQ:MSTR), Paypal (NASDAQ:PYPL), Square (NYSE:SQ), Marathon Digital (NASDAQ:MARA) and Hut 8 Mining (NASDAQ:HUT). Altogether, these five firms make up over 23% of the ETF’s total holdings.
So far in 2021, BLOK stock is up by about 33%. For those who don’t want to invest in cryptos directly but would like exposure to blockchain, this name could be a great option to consider.
VanEck Vectors Digital Transformation ETF (DAPP)
52-week range: $21.59 – $34.20
Expense ratio: 0.65% per year
Last up on this list of cryptos is another fund, namely the VanEck Vectors Digital Transformation ETF. Like BLOK, this fund also invests in businesses that focus on digital assets and related technologies.
DAPP, which has 25 holdings, follows the MVIS Global Digital Assets Equity Index. Moreover, the fund only just started trading in April 2021 and has around $32.5 million in total net assets. Thus, it is a young and small ETF.
In terms of the sectoral breakdown, the Information Technology (IT) sector makes up the highest portion of this ETF with 75.6%. That is followed by the Financials and Communication Services sectors which account for 20.9% and 2.4%, respectively. Lastly, the fund’s top 10 holdings account for over 63%.
Square, Voyager Digital (OTCMKTS:VYGVF), Nvidia (NASDAQ:NVDA), Galaxy Digital (OTCMKTS:BRPHF) and Silvergate Capital (NYSE:SI) are some of the leading names in DAPP. Since inception, this ETF is down about 23%. Interested investors could consider buying the dips in DAPP stock.
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On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation.