The bear market has been brutal for the past year. Most altcoins hit all-time highs in November 2021 before dropping rapidly in the last two months of 2021. This model is expected to continue until 2023.
Many cryptocurrencies are currently undervalued: So why?
The first six months of 2022 have been particularly brutal. By mid-June, Bitcoin’s price had dropped from $48,000 to $18,000, and Ethereum’s price dropped from $3,800 to just under $1,000. Prices were able to recover briefly in August before falling more easily again. Late October/early November saw another minor rally, especially in altcoins, before the FTX crash that sent many cryptocurrencies to 2022 lows. Prices have stabilized at a low level since then.
The bear market is an expected part of the Bitcoin cycle followed by altcoins. As a result, losses were expected. However, these losses could have been much higher than expected. Because the market has been affected by two main processes:
- Continuous increases in key interest rates in the US have strengthened the US dollar and thus fiat currencies. As a result, the value of cryptocurrencies falls.
- Also, cryptocurrencies are undervalued as confidence in the market has been severely damaged by the FTX bankruptcy. This whole process has a long-term effect.
Which are the top 3 altcoins to watch out for in 2023?
According to experts, cryptocurrencies may see an increase in value in the next 12 months. Analyst Prasanna specifically pointed to the following altcoins:
Polygon performed admirably in 2022, making it into the top ten cryptocurrencies by market cap. However, Matic could be one of the undervalued cryptocurrencies of 2023. cryptocoin.com As we reported, Polygon is an Ethereum Blockchain scaling solution. It also emerged as a multi-chain network. Polygon is being used by an increasing number of developers to build dApps due to its high scalability and connectivity with the Ethereum ecosystem.
Apecoin is the ecosystem token of the Bored Ape Yacht Club. During the previous bull market, millions of dollars flowed into BAYC. The excitement surrounding NFTs caused an explosion of interest in NFT collection. A huge ecosystem is forming around BAYC and its token, Apecoin. The developer of the game, Yuga Labs, has already stated that many new features will be released in 2023. Features such as animated avatars will enter the market in their metaverse called Otherside. The initial excitement surrounding the Metaverse may have passed. But some of the excitement may come back in 2023. The millions of dollars invested in the project should ensure the rapid growth of the network.
Trust Wallet Token (TWT)
Trust Wallet is one of the best known software wallets on the market. It also includes multi-level security authentication and private key storage. Thus, it stands out with its high safety standards. Trust Wallet has benefited from the crisis of centralized crypto exchanges following the FTX scandal in 2023. Many investors still hold cryptocurrencies on major exchanges. While hardware wallets provide the highest level of security, many investors prefer a simpler software solution. As a result, Trust Wallet’s token could become one of the undervalued but high-potential cryptocurrencies in 2023.