Here are 5 altcoins to study as crypto prices drop to near 1-year lows

Since the start of 2022, the pain trade has been an ugly sight across the cryptocurrency market, and during the last 24 days, Bitcoin (BTC) and altcoin values have drifted, prompting some analysts to predict a bear market.

Despite traders’ fears that new crypto winter is on the way, now is the time for investors to take advantage of outstanding opportunities to buy fundamentally strong cryptocurrencies at a discount.

In that sense, let’s take a deeper look at a few projects with solid fundamentals and a proven use case that can be suitable candidates for accumulation during the current market drop.

Polygon (MATIC)

Polygon (MATIC), an Ethereum (ETH) layer-two scaling solution, is currently down 50.76 percent from its all-time high of $2.92 set on Dec. 27, 2021.

Polygon had rapid growth and popularity in 2021 as a result of its compatibility with Ethereum and cheap transaction fees, making it a popular choice for users and protocols wishing to stay on the Ethereum network but avoiding the hefty transaction costs.

The network may support a wide range of decentralized applications, including lending protocols such as AAVE, decentralized exchanges such as Uniswap, and gaming and nonfungible token initiatives such as Aavegotchi.

Layer2 solutions like Polygon are likely to witness greater interaction as consumers seek lower-fee transactions, despite the fact that the capabilities and final timing for the launch of Eth2 are still unknown.

Fantom (FTM)

Fantom (FTM) is a layer-one blockchain protocol that gained popularity in 2021 as a result of its low fees and Ethereum Virtual Machine (EVM) compatibility, which attracted additional users and protocols to the network.

The price of FTM is currently down 36.3 percent from its December highs, and it is trading at $2.15 at the time of writing.

The steady climb in total value locked (TVL) on the Fantom network, despite the market-wide decline, supports the optimistic case for FTM, with statistics from Defi Llama revealing that the Fantom TVL is currently at an all-time high of $12.07 billion.

When compared to other networks like Solana (SOL), which has a TVL of $7.62 billion, Fantom has more value and hasn’t had any big network outages like Solana, yet it trades at a significant discount to SOL’s pricing.

With SOL trading at around $90, FTM would need to trade at $18.10 to match SOL’s market cap, implying that Fantom is undervalued in comparison to its layer-one competitors and has the ability to bridge the gap as 2022 continues.

Polkadot (DOT)

Polkadot (DOT), a sharded multi-chain protocol whose purpose is to ease the cross-chain movement of any data or asset kinds across different blockchain networks, is another token that could be in a good accumulation zone.

The price of DOT has been declining since early November 2021, according to data, as the token has outperformed its cohort of layer-one projects, presumably due to the lack of a functional Ethereum bridge.

This all changed on Jan. 11, when Polkadot’s Moonbeam (GLMR) parachain officially opened, establishing the Polkadot network’s first cross-chain bridge. Moonbeam has executed over 1,329,000 transactions and supports over 700 ERC-20 coins as of January 24.

As more parachains officially debut on Polkadot in the coming months, DOT’s demand and token price may climb as users seek to participate in the Polkadot network.

This all changed on Jan. 11, when Polkadot’s Moonbeam (GLMR) parachain officially opened, establishing the Polkadot network’s first cross-chain bridge. Moonbeam has executed over 1,329,000 transactions and supports over 700 ERC-20 coins as of January 24.

As more parachains officially debut on Polkadot in the coming months, DOT’s demand and token price may climb as users seek to participate in the Polkadot network.

Curve (CRV)

Curve DAO token has emerged as one of the most sought-after tokens by investors and protocols contending for control of governance on the platform, thanks to the growing importance of stablecoins in the crypto market.

According to data, the price of CRV has plunged 60% after achieving a record high of $6.80 on Jan. 4 and now trades at $2.76.

Despite the dip in CRV price, the ongoing ‘Curve Wars’ signal that demand for the token will rise once the present market weakness settles, as decentralized financial projects vie for governance power over the Curve ecosystem.

At the time of writing, veCRV, the Curve protocol’s voting token, holds 49 percent of the total circulating supply of CRV.

Frax Share (FXS)

Frax Share (FXS), the first fractional-algorithmic stablecoin system in the crypto industry, began gaining popularity near the end of 2021 and seeks to play a larger role in the stable coin sector.

The protocol’s FRAX stablecoin has become a DeFi audience favorite, owing to its decentralized character in a space dominated by centralized initiatives such as Tether (USDT) and USD Coin (USDC).

The overall volume of FRAX traded has increased over the last six months as a result of its adoption, reaching an all-time high of $6.3 billion.

FXS’s positive momentum is underpinned by constantly rising total value locked, which climbed by 30.53 percent in the last week and 86.9% in the last month to reach a new high of $2.28 billion on Jan. 24. This rise to a new high in TVL occurs despite the fact that practically every other asset on the crypto market has dropped in value.

FXS could see a spike in demand and token price as the relevance of dependable stablecoin protocols grows, since FRAX is now being accepted across DeFi by consumers looking for additional decentralised stablecoin options.