The crypto bubble has just popped. Cryptos have been plunging over the past month, shaking investor faith in the cryptocurrency market and wiping away around $1 trillion from the crypto market. Bitcoin (CCC:BTC-USD) has lost nearly half its value since reaching an all-time high of over $64,000 in mid-May. Although it is hard to know whether digital currencies are out of the woods, in the past few days, the crypto market has shown signs of recovery. Therefore, today’s article discusses seven cryptos that could rebound soon.
Vitalik Buterin, the founder of Ethereum (CCC:ETH-USD) told CNN in late May: “We’ve had at least three of these big crypto bubbles so far. And often enough, the reason the bubbles end up stopping is because some event happens that just makes it clear that the technology isn’t there yet… It feels like crypto is close to ready for the mainstream in a way that it wasn’t even four years ago.”
Former Goldman Sachs executive Raoul Pal shares Buterin’s optimism. He believes that the recent crash is a bullish catalyst that should enhance the development of the crypto ecosystem in the long term. He recently said, “A new, anti-fragile financial system that doesn’t break in times of stress, where ownership of assets is clear and losses are not mutualised to taxpayers. This was a big two weeks for crypto and for the future financial system.”
The developments of the past year has shown that a digital economic system is fast evolving. Digital currencies, payment systems and platforms are an integral part of increased digitalization. Therefore, many cryptos that are making headlines today are possibly here to stay for the long-term and will eventually reach new highs.
Yet readers should also remember that the acceptance of digital currencies will not be uniform across countries. For instance, recent weeks saw China crack down on cryptos. Earlier in the year, several crypto exchanges collapsed in Turkey, bringing volatility to the price of Bitcoin. We may even see a crypto tax announcement from the U.S. government, as it wows to get tough on tax avoidance. Therefore, investors should not bet the farm on digital assets.
This list includes a few of the most promising ideas in the blockchain space today. All have solid upside potential for the rest of the year. With that information, here is our list of seven cryptos ready for a rebound in June.
Cryptos to Buy on Rebound: BitTorrent (BTT-USD)
BitTorrent was founded two decades ago as a file-sharing software over a peer-to-peer network. It was acquired by the Tron Foundation in 2019 and established a BitTorrent token cryptocurrency (BTT) to deliver incentives to users and expand its protocol.
File providers receive BTT-USD for sharing a file on their system, users spend the crypto to request files or increase their download speed. There is no limit to file capacity. The platform aims to build the foundation for future growth by improving its quality of service.
Once associated with the illegal pirating of movies, BitTorrent managed to rebuild its reputation and has since come a long way. It is now the largest peer-to-peer (P2P) software on the blockchain. After all, there will always be a market of internet users who need feasible ways to share files online. Currently, BitTorrent boasts 2 billion users and 200 million wallets worldwide. Companies that use its protocol include Netflix (NASDAQ:NFLX), Facebook (NASDAQ:FB), and Twitter (NYSE:TWTR).
BitTorrent is currently hovering at 0.36 cents (or about $0.0036), up more than 1043% year-to-date. On Apr. 6, it reached an all-time high of 1.0589 cents (or about $0.0106). BTT-USD has since been falling. It has bounced back at the 0.35 cent support area. Yet, it is down more than 60% from its all-time high (ATH) seen in early April.
Despite the recent volatility, investor sentiment for BTT-USD is bullish. In fact, an initial coin offering (ICO) on Binance earlier in the year sold out in just 15 minutes. BitTorrent demonstrates upside potential due to its growing user base. Once the present choppinesses subsides, it could be one of the first cryptos to rebound soon.
A remarkable price rally in 2021 made ADA-USD the 5th-largest digital coin by market capitalization (cap). The Cardano network is also one of the largest blockchains that uses proof-of-stake (PoS) validation. As an eco-friendly cryptocurrency, ADA-USD has differentiated itself among other cryptos.
ADA-USD has been able to get around various problems associated with Bitcoin’s rigid structure and Ethereum’s high fees and congestion issues. It uses a two-layer computational structure that improves the scaling issues of Bitcoin and smart contract features of Ethereum.
The platform has seen a major surge in adoption due to its capability to build smart contracts. ADA-USD offers users an alternative to Ethereum for decentralized finance (DeFi) applications with higher speed and lower fees.
At the end of 2020, ADA-USD was trading around 18 cents. Today, it’s trading at $1.53. It has gained over 775% year-to-date (YTD). The altcoin has proved to be quite resilient during the recent crash compared to some other cryptos. It is currently trading about 38% below its ATH.
Currently, the investor sentiment for the “Ethereum killer” is bullish. For the longer term, the price of ADA-USD will likely move back above $2 and trade at new highs in the coming years.
Cryptos to Buy on Rebound: Chainlink (LINK-USD)
Our third crypto, Chainlink, aims to integrate off-chain data into smart contracts using an oracle network. Oracles are sources of data between the blockchain and the “real” world. Chainlink works as a connection that links independent blockchain projects to real-world data.
Experts point to a need for a bridge that can help the blockchain systems see and react to what is happening in real life. Put another way, Chainlink provides the vital information smart contracts need to operate advanced features in decentralized applications and non-fungible tokens (NFTs).
For instance, Chainlink can integrate finance information from other well-known sites into smart contracts. Thus, smart contracts could be designed to pay out insurance claims if values like share price or temperature fall outside a certain range.
LINK-USD is an Ethereum token powering the Chainlink network. Chainlink was founded in 2017 by Sergey Nazarov. He is a well-known name in the crypto space as the founder of the smart contracts concept.
The altcoin was launched in 2017 with a price under 20 cents and remained under $1 until 2019. It got its most significant boost when Google (NASDAQ:GOOG, GOOGL) began using Chainlink in 2019. The price soared from under $2 during the first days of 2020 to a high of over $52.88 on May 10, 2021. LINK-USD currently trades around $23, and is up about 95% YTD.
Incorporating real-world data opens up an enormous potential for blockchain networks in the long-run. Thus, we could soon see LINK-USD become a crypto standard among decentralized oracle networks. It is one of my top altcoin picks to rebound in June.
Next on our list is Polkadot, one of the youngest cryptos. It was created by former Ethereum leaders who developed a new digital asset with more advanced features designed to overcome the scalability issues in Ethereum. It enables developers to build their own blockchains and effectively connect them with each other based on a standard security system.
The project’s vision is to create a completely decentralized Web 3.0. Most InvestorPlace.com readers would be familiar with how Web 3.0 “will focus on using a machine-based understanding of data to provide a data-driven and semantic web. The ultimate goal of Web 3.0 is to create more intelligent, connected and open websites.”
Polkadot’s competitive advantage lies in its capability to accept different kinds of independent chains. DOT-USD token is its native cryptocurrency. The blockchain platform allows messages and monetary values to be transferred peer-to-peer.
Thus, it is a multi-chain technology built on trust among users. For instance, it has a dynamic governing structure of voting rights for all DOT-USD holders. At the time of writing, Polkadot has become the 9th largest cryptocurrency by market cap.
DOT-USD started the year at $8.305. Now, it is trading around $28, or up about 175% YTD. Despite the recent decline in price, this is an impressive performance. Once the crypto space recovers, long-term investors are most likely to see new highs.
Cryptos to Buy on Rebound: Polygon (MATIC-USD)
Previously known as the MATIC Network, Polygon has a mission to help developers create Ethereum-compatible blockchains. It provides the framework for building Ethereum-compatible blockchains. Therefore, Polygon is also referred as the “Internet of Blockchains.” Its digital token, MATIC-USD, currently ranks as the 18th largest cryptocurrency by market cap.
Polygon addresses some of the issues that…
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