Being a crypto value investor might sound like a contradiction in terms to stock value investors, who base their analysis on earnings and the strength of a company’s market share position.
But although crypto projects on the whole don’t tend to have any earnings, it doesn’t mean they do not have customers – or to put that another way, network users.
In other words we can measure the value of a network by usage and an assessment of its potential for building network usage because of the strength of its technology.
In our pick of the top 3 undervalued cryptos, we have selected one DeFi coin, one smart contract coin and one media platform coin. And if you are looking for other choices in the best cryptocurrency to buy category, check out our guide.
1. DeFi Coin – fully featured DEX coming soon
Defi Coin (DEFC) launched in June when we tipped it for great things and since then has garnered a lot of interest. The coin’s core functionality is built around a decentralised exchange (DEX) and a mission to educate the world about decentralised finance (DeFi).
From its presale price of $0.10, the coin has exploded in value. At the time of writing it is trading on the BitMart exchange at $0.68 (up 38% today) and has traded as high as $1.67 (21 July).
Rumour has it that the project will soon be announcing investment from an institutional player.
What is definitely known is that in around three weeks’ time the testnet for its DEX – named DeFiCoinSwap – will be going live, in a significant milestone for the project.
DeFiCoinSwap will bring with it the full gamut of features that those involved in DeFi have come to expect.
Features will include:
- Swap
- Earn
- Migrate
- Analytics
- Dashboard
- Pool
- Farm
- Stake
A spokesperson for the project said: “The team at DeFi Coin has a wealth of knowledge in the crypto industry and will be seeking out new partnerships with mainstream cryptocurrencies whereby they will Stake, Pool & Farm their tokens on DeFiCoinSwap.”
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2. Solana – showing impressive traction
Solana is capturing a chink of the crypto zeitgeist right now, with its super fast smart contract platform achieving some significant milestones. Solanart – an NFT marketplace built on the platform – has just hosted the sale of digital art by the Degenerate Art Academy with not a hitch in terms of congestion and exorbitant fees.
It is one thing to boast of 50,000 transactions per second but delivering is what really matters, and Solana has come out of this realtime test smelling of roses when compared to market leader Ethereum, where it can cost thousands of dollars to mint NFTs and popular offerings can slow the network down to a crawl because of congestion.
Avalanche, Audius, Serum, Kin and more
Other Solana-based projects such as Avalanche have also been catching a bid, so readers may also want to check them out.
Audius, Serum and Kin are all flying at the time of writing, with Audius the standout project among them because of its recent tie-up with massively popular Tik-Tok app as its music platform partner.
Solana is currently the 10th most valuable network by market cap ($22.38 billion) and is up 18% today at $78.
We think that’s still a cheap price for a coin that is coming up fast on the inside lane to catch Ethereum. At the heart of Solana is a revolutionary protocol based on Proof-of History, which is a timestamped system to automatically order transactions. Alongside it is a proof-of-stake consensus system to secure the network.
If you are looking out for the next cryptocurrency to explode and you think it might not be Solana, then check out our guide.
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3. Theta Fuel – powering the Netflix of crypto
The third of our top 3 most undervalued cryptos is Theta Fuel. The Theta Network is one of the up-and-coming media networks. It describes itself as the protocol for creating, streaming and consuming online video content.
The ecosystem’s token economics is comprised of two tokens, THETA for staking and securing the network and TFUEL which is used for microtransactions and other network operations. Both tokens incentivise users to offer up unused bandwidth and storage resource in a peer-to-peer setup.
THETA is currently trading at $7.09. TFUEL reached a high of $0.589 20 June and is currently priced at $0.328. We think TFUEL is well-positioned to reclaim that high.
In June 2021, Theta Network added NFTs to its functionality and last month activated smart contracts on the platform (Mainnet 3.0).
Also, in June Theta Labs received a patent for technology it has invented to prevent denial-of-service attacks against networks with decentralised edge architecture. The technology uses verifiable delay functions (VDFs) to achieve this end. The text from the filing at US patent office reads: ” The invention featured in this patent introduces significantly improved protection against attacks for decentralized networks like Theta Network.”
We believe that Theta’s robust technology and its potential for network growth underwritten by the above developments, mean the market has overlooked the value in this coin after the run-up in price in June turned sour.
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