Finding underrated cryptos is a tricky proposition as pump-and-dumps, scams, and questionable investments abound. While you could deploy capital across a range of cryptos and hope one or two strikes big, it’s better to consider where practical application meets consumer enthusiasm.
Each of these three underrated cryptos has massive tailwinds pushing them forward despite wider crypto skepticism. And, in each case, the crypto’s current valuation is shockingly low considering the upside on the horizon.
Bitcoin (BTC)
Bitcoin (CCC:BTC-USD) is hardly underrated by most standard metrics. In fact, Bitcoin is probably the least underrated crypto available. Its size, popularity, and name recognition all combine to make Bitcoin THE name in crypto. But this week’s series of Bitcoin ETF unveilings marks a pivotal point that, when we look back in ten or more years, will make today’s valuation seem underrated by comparison.
While the spot ETFs don’t materially change Bitcoin’s value proposition (in fact, I’d argue that they actually subvert the crypto’s core tenets), the fact stands that we’re now likely to see record cash inflows to Bitcoin by virtue of access. With fewer than 20% of Americans using crypto as an investment vehicle, bad press and difficulty navigating exchanges likely kept some investment cash on the sidelines. But, now, even the most conservative wealth and retirement managers will likely allocate some amount of client capital. Even if it’s just a token (pun intended) investment, small inflows add up. That holds doubly true for investors looking for a “buy and hold” angle rather than pumping and dumping.
Whether we ever see Bitcoin’s full utility realized, this week’s developments mark a major milestone in crypto – and for investors fighting to find underrated cryptos.
Decentraland (MANA)
Decentraland (CCC:MANA-USD) is an in-game crypto used to buy and sell within a metaverse-style ecosystem. And, priced well below $1, MANA is easily among the top underrated cryptos, considering how rapidly Web3 gaming is catching steam. In 2022, the global blockchain-based gaming market hit more than $4.5 billion in total value, with estimates pegging the future value at $65 billion by 2027. We’re likely going to see a gold rush within blockchain gaming platforms, and Decentraland is one of the top picks today.
Decentraland is also recognizing the utility of expanding in-game offerings. Last year, the company announced a cross-chain upgrade that lets players and users leverage other cryptos in-game aside from MANA. Counterintuitively, the move could serve to keep players within the Decentraland ecosystem, even if it puts pressure on MANA’s pricing in the short term.
The Sandbox (SAND)
The Sandbox (CCC:SAND-USD) is another one of those underrated cryptos positioned to capture the massive emerging blockchain gaming sector. Companies like Playboy (NASDAQ:PLBY), Atari, and Ubisoft (OTCMKTS:UBSFY) have already staked claims within the metaverse gaming platform.
At the same time, notables and properties as diverse as Snoop Dogg, Gordon Ramsey, The Smurfs, and deadmau5 have a presence within The Sandbox. While many decry past metaverse “real estate” booms as pump-and-dumps, the reality is that (as with any ad space) platforms like The Sandbox will be hot commodities as more users flock to the platform. Likewise, in-game currency values will spike too – setting SAND investors up for a strong rebound.
If you’re game for technical analysis, analysts point to SAND’s current pricing right around the “depression” phase of average investment cycles. This means a rebound could be on the horizon for the underrated crypto.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
