Bitcoin and Ethereum, the two largest cryptocurrencies, are the most attractive investments. But with prices at $ 46,071 and $ 3,232, it becomes difficult for anyone to actually invest in them.
So the question is, what alternative coins can be the right investment and whether their popularity is justified based on their performance?
Put simply, there are many coins in the $ 1 range. While that may seem like a good price for an entry point, buying in bulk brings us back to the previous problem. Hence, people are looking for alternatives like Cardano and MATIC.
Based on their recent demand, this is where altcoins are traded below $ 1 and analyzed to see if they are a good investment.
Based on the price since July 21, Ravencoin (RVN) is up 164%. The one-day increase in altcoin was 34% on August 6 alone and is currently trading at $ 0.13. Dogecoin (DOGE) was trading at $ 0.25 while VeChain (VET) was trading near $ 0.1 and XRP was trading at $ 0.8; they were up 46.81%, 80.4%, and 54% respectively.
While these are good rallies against Cardano (ADA) and MATIC (by Polygon) that are around 48.56% and 64.2% or will they look a little better.
What about their volumes?
Again based on volumes, there are some interesting numbers. RVN’s real volume at press time was $ 166 million, which also peaked at $ 2 billion in March. Despite its low prices, DOGE had a volume of up to 869 million US dollars. This was followed by the controversial altcoin XRP at $ 461 million, and eventually VET was pretty much behind at $ 89 million.
However, when these are contrasted with the $ 1 coins, the picture is different. MATIC’s $ 129 million is significantly lower than even RVN’s, approaching ADA’s $ 224 million volume.
Is developer activity a factor?
Indeed, it is one of the biggest factors. The developer activity (DA) represents the strength and efficiency of the coin network. Low DA corresponds to a stagnant network. And when you look at it, the picture becomes much clearer as to which coin is a better investment.
RVN has one to no DA at the moment and a terrible hash rate. DOGE’s DA continues to drop sharply and VET saw a good increase on July 29th. XRP here is the only one with really strong developer activity, which makes it an attractive coin.
So what should you choose?
Based on the above data, the factors behind making a decision for a better investment, it becomes clear that Ravencoin (RVN) come and go with no actual value behind it, it is not a good choice. Dogecoin (DOGE), the love of “Dogefather” has some potential for the future and while it may sound absurd, it seems like a good choice under $ 1.
While VET is not that great, its 80% increase, supported by a good DA, makes it a sizeable investment. After all, XRP is the only coin here that has a stable, potential and investable future. Once the ongoing lawsuit is closed, the altcoin could see some real-world use cases.
For traders, shorting and lunging is a viable strategy, some of the alternatives mentioned above offer short selling opportunities while those with potential can be tapped.