The vicious bear market we’ve seen play out this year in cryptocurrencies has taken many investors by surprise. For those looking for cryptos to buy, it really appears as if there’s no good place to start looking.
After all, most tokens are depreciating in value as investors continue to de-risk their portfolio. With surging inflation has come higher interest rates, which the Federal Reserve bumped up another 0.75% this week. Accordingly, portfolio positioning has changed substantially, and not in favor of crypto investors.
That said, with every previous bear market we’ve seen, most major cryptos have rebounded to make new highs. We’ve also seen thousands of new projects pop up to grab hold of surplus liquidity.
While that surplus is drying up in 2022, the party isn’t really over.
For those looking through this period of pain to the next bull market, finding top cryptos to buy may be a priority. With that in mind, here are three top tokens on my watch list right now. These are all top projects investors may want to consider when sentiment starts to turn around.
Source: Lichi / Shutterstock.com
One of the leading blockchain-based metaverse games, Decentraland (MANA-USD) has seen impressive growth. The network’s core MANA token acts as an in-game currency. Accordingly, for those who have seen the success of existing digital games such as Pokémon Go, there’s an easy-to-understand thesis for why such projects may see continued growth.
Decentraland is a project based on the Ethereum (ETH-USD) blockchain which specializes in digital real estate. Uses can invest in plots of land, explore with their friends, and find a metaverse to interact in. This past year, Decentraland saw some pretty high-profile support from various celebrities and corporations which have piled into this particular metaverse.
For example, in May, the platform saw the launch of M Social by Millennium Hotels and Resorts. Interestingly, hospitality groups aren’t the only purveyors of real estate on this platform. Other high-profile brands have sought a digital footprint to sell NFTs of their goods and expand their brand presence.
This model is one that is relatively simple to understand, even for those who aren’t a proponent of gaming. Should growth continue to materialize in the years to come, this is a project I think is worth watching right now.
A competitor to now-proof-of-stake network Ethereum, Algorand (ALGO-USD) is a crypto network that has seen some significant corporate acceptance. Indeed, as far as Ethereum proxies go, Algorand may be able to take market share over time. This reality makes it one of the top cryptos to buy now.
This project received a significant lift in 2021 when El Salvador stated that it would establish its blockchain infrastructure with the help of Algorand. However, since then, Algorand has been on the decline in terms of valuation.
This valuation decrease along with the broader sector may be expected. However, it’s the continued interest Algorand has seen from investors that makes this project appealing. Recently, Blockworks reported that venture capital company Borderless Capital launched a $500 million fund to invest in digital assets that power dapps on Algorand. Also, Sovereign (SOV), the central bank digital currency of The Marshall Islands, uses Algorand. Additionally, FIFA chose Algorand as its official blockchain.
These sorts of real-world integrations makes Algorand an intriguing project to consider. Should growth continue, which is a big question, investors stand to benefit from the long-term upside potential of this network.
Source: Hakan GERMAN / Shutterstock
Claiming to be the world’s fastest smart-contract network, Avalanche (AVAX-USD) has also seen some impressive growth in recent years. Despite seeing its AVAX crypto decline substantially from its peak, there are a number of reasons why many Avalanche investors remain bullish.
The developers behind the Avalanche protocol cite the network’s scalability as a key differentiating factor to consider. Using subnets, Avalanche has managed to find a way to allow more decentralized projects to interact on its blockchain, sharing staking resources. This has made Avalanche more efficient and extremely fast. For those bullish on cryptocurrencies for their role in supporting the rise of DeFi, this is a big deal.
The list of recent projects launched on Avalanche is long. And these projects will support the kind of long-term growth investors want to see. In some sense, crypto valuations come down to the size of a given network’s ecosystem. In this regard, Avalanche has done well to incentivize more development on its platform, perhaps to a greater degree than most projects out there.
Over the very long term, these cryptos to buy look like they have not only a shot of surviving, but thriving. Those looking for innovative growth assets may want to keep these tokens on their watch list right now.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.