Cryptocurrency

2 Cryptocurrencies That Are Down More Than 65% and Ready to Pop

The cryptocurrency market today is a place some investors are fleeing. Fears about higher inflation and the economic outlook have driven investors to safer investments — and out of the riskier crypto market.

But cryptocurrency players themselves haven’t changed significantly over the past few months. Some offer plenty of real-world utility and the potential to change the way business is done. And right now, you can get these players on sale. So, if you’re ready to bargain hunt, take a look at these two cryptocurrencies that may be set to rebound.

1. Ethereum

Ethereum (ETH 1.68%) already is a leader in the worlds of decentralized applications and non-fungible tokens. These areas are central to the future of cryptocurrency. Ethereum also is the world’s second-biggest crypto player by market value. But Ethereum is about to get even better. That’s because it is on the way to eliminating its biggest flaw.

Right now, the problem with Ethereum has to do with a lack of speed. That leads to congestion on the network, slow transactions, and high transaction fees. All of this is due to the way Ethereum verifies transactions. It’s now in the process of transitioning from the proof-of-work validation method to a proof-of-stake one. This step in Ethereum’s big update is called the Merge. And it’s set to happen this summer.

A speedier, cheaper Ethereum clearly could attract even more users and investors. So, if the Merge goes smoothly, that’s a very valid reason for Ethereum to climb.

2. Cardano

One of Ethereum’s co-founders went on to develop Cardano (ADA -0.18%). This young crypto player is still in its early days. The Cardano team is following a five-stage road map to make it a completely decentralized and self-sustaining system. Right now, work is happening simultaneously on the last two stages. And an upgrade known as the Vasil hard fork, set for next month, should help Cardano handle more transactions — and lower their costs.

But the big catalyst for Cardano may come later this year. And that’s the launch of hydra heads. These are off-chain ledgers that support transactions involving a small number of participants. The idea is to increase the volume of data Cardano can handle at a given time and speed up transactions. Initial estimates suggested one hydra head could process 1,000 transactions per second.

A successful launch of the hydra head project is crucial. That’s because this solution gives Cardano what it needs to keep a spot among the top crypto players.

Will these crypto players pop?

The elements I’ve mentioned above represent solid catalysts for Ethereum and Cardano. Right now, they’re down 71% and 66%, respectively. And they’re ready to pop. But there’s one caveat. That’s the general market environment. Continued inflationary pressures and concern about economic growth may continue to weigh on assets such as cryptocurrencies for a while. Even if Ethereum and Cardano have reason to gain, market sentiment may get in the way.

So, before investing in these or any other crypto players, it’s important to evaluate your own comfort level with risk and volatility. And it’s best to invest only what you can afford to lose.

If you are OK with the ups and downs of the crypto market, then this could be a great time to buy. If Ethereum and Cardano deliver on their promises, they could significantly appreciate over the long term.

Ethereum (ETH 1.68%) already is a leader in the worlds of decentralized applications and non-fungible tokens. These areas are central to the future of cryptocurrency. Ethereum also is the world’s second-biggest crypto player by market value. But Ethereum is about to get even better. That’s because it is on the way to eliminating its biggest flaw.

Source: https://www.fool.com/investing/2022/06/25/2-cryptos-down-65-percent-ready-to-rebound/

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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