2 High-Growth Cryptocurrencies to Buy on This Dip

Here are two top high-growth cryptocurrencies investors looking to buy the dip may want to consider in this bear market environment.

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cryptocurrency, crypto, blockchain

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The “buy-the-dip” mentality that’s governed the market for the past year has certainly been something to behold. For high-growth cryptocurrencies, the influx of capital into the markets has provided some eye-watering returns for investors.

However, with the removal of liquidity from the system in 2022, this “buy-the-dip” mentality is turning into a “sell-the-rip” perspective for many investors. Indeed, this view makes sense, given the rather bearish macro view facing the market.

That said, fortunes are made and lost in times like these. Accordingly, for those looking to buy the dip (for the long term) in some worthy, growth-focused crypto projects, here are two worth considering right now.

Ethereum

Ethereum (CRYPTO:ETH) is the first major crypto project to launch smart contracts. This move has propelled Ethereum to second spot behind the original cryptocurrency, Bitcoin.

Indeed, as far as high-growth cryptocurrencies go, Ethereum is certainly a top network. With the largest ecosystem of decentralized applications and developers building on this network, Ethereum has enjoyed network effects rarely seen in the crypto world.

That said, with the velocity of money slowing down of late, Ethereum is just as prone to selloffs as the rest of the market. Of late, Ethereum’s moves have reflected weakening sentiment and deteriorating macro conditions.

However, the upcoming Ethereum merge, which will bring proof-of-stake consensus and Ethereum 2.0 to the world, there’s reason to be excited about this token. From here, I think ETH could be one of the more volatile, but higher-upside tokens for investors to consider.

Top high-growth cryptocurrencies: Avalanche

Avalanche (CRYPTO:AVAX) is one crypto project that’s been dubbed an “Ethereum killer.” These titles are usually bestowed on the highest-quality, smart contract-enabled, proof-of-stake (PoS) platforms. In many ways, this is a compliment to the developers behind Avalanche’s blockchain.

Via a unique technical setup, including subnets, Avalanche has provided one of the most scalable PoS platforms out there. Like other tokens, AVAX has been hit hard by this selloff. However, should the market rebound, there are expectations from many experts that Avalanche will be a blockchain of choice for new projects to be built upon.

Widely used for transfers, there are approximately 500,000 unique addresses using Avalanche. That’s five-times the number of monthly addresses on Arbitrum, Ethereum’s most popular layer-2 solution. Thus, there’s some data to back up the thesis that Avalanche could be a top-five token in the future.

Bottom line

Over the long term, I think both Ethereum and Avalanche provide impressive upside potential. While market conditions don’t warrant such a view, it’s really about investors’ time horizon.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald has positions in Ethereum. The Motley Fool has positions in and recommends Avalanche, Bitcoin, and Ethereum.

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