Can crypto recover before 2023? Yes. It can, and it most likely will, but the definition and scale of the recovery are hard to pin down. And after the tragic fall of Luna, we can safely assume that there would be a huge discrepancy in recovery as well. Some cryptocurrencies might recover faster and may even reach their former peaks, while others might fall short of the mark and start trading around a new, revised, higher baseline.
Take Luna, for example. A realistic scenario where the crypto might reach its former peak includes is to burn the available supply down to 350 million from the current 995 million, which is extreme, to say the least. However, we can safely assume that the general trend would be Bitcoin recovering and the rest of the cryptocurrencies following course.
Even if they can’t reach the top they fell from, the recovery might still offer robust growth if you choose the right stocks.
And there are two cryptocurrencies that stand out from the crowd for the recovery.
The fifth-largest crypto by market cap
Binance Coin (CRYPTO:BNB) currently sits squarely in fifth place. The difference between it and the next crypto in line is wide enough that it will have to lose more than half its value to fall a rank. It’s currently trading for around $350 per unit — a massive step down from the $817 peak the crypto achieved last year.
If it starts to recover and falls short, with its growth reaching $700 at max, you can still double your money. And based on the recovery/growth pace displayed by the cryptocurrency in the past, it might only take a few months at most.
Will Binance recover? Binance is in trouble with the SEC, which is looking into its Initial Coin Offering (ICO) and some money-laundering claims, which the company has strongly refuted. But on the plus side, cryptocurrencies are proceeding with their global and technological expansion plans.
The seventh-largest crypto by market cap
One main difference between Binance Coin and the seventh-largest crypto, XRP (CRYPTO:XRP), is that its rank (due to the market cap) is tenuous at best. There is very little room on both sides, and assuming the sixth and the eighth-largest cryptos stay at their place (or experience very little nudge upward or downward), one strong fall or bullish phase can change XRP’s place in the pecking order.
It’s also more heavily discounted. The crypto fell from its peak of $1.38 per unit to $0.38 by now. And in its recovery phase, it could easily triple your investment without reaching its former peak. There are signs indicating a strong recovery and signs that might indicate a harsher decline.
The co-creator has dumped a massive amount of his holdings this year. And a former executive has predictive that XRP might hit $100 someday.
The current bearish phase might be the perfect time to invest in crypto and buy a lot of prospective “winners” at discounted prices. But most investors are slightly afraid to tie their capital to an asset that might go down much further than it already has and may never recover to its 2021 height, even though it’s highly unlikely.