2 Cryptocurrencies to Buy for Potential Recovery

The largest and most liquid cryptocurrencies may not always be the first to recover, and you may have to go deeper into the pool to find the potential winners.

| More on:
Hand arranging wood block stacking as step stair with arrow up.

Image source: Getty Images

Since June 2022, Bitcoin has hovered around the US$20,000. It has gone up but nowhere near the US$30,000 mark and has fallen but not too hard to trigger another selling frenzy.

It has started showing early signs of recovery, but it’s too soon to say whether it’s the start of a proper recovery that may push Bitcoin, if not to its 2021 height, then at least into the US$40,000 to US$50,000 territory, or if it’s just a temporary phase.

Both have their merits, and many investors may benefit, even from a relatively short recovery. But if you want to bet on crypto recovery and the bear market ending soon, Bitcoin might not be the best asset to do it with, and there might be several other, smaller cryptocurrencies that may have a better recovery potential.

A decentralized exchange token

The Uniswap (CRYPTO:UNI) crypto represents the native token of the Uniswap exchange, the largest decentralized crypto exchange in the world. Unlike the largest crypto exchanges in the world, like Binance and Coinbase, which are centralized, Uniswap offers more control (over its assets) to its users by using a peer-to-peer model.

As the largest crypto of its kind, Uniswap has an inherent edge, and even though its native cryptocurrency is currently only the 17th-largest crypto by market cap, it may climb the charts in the future.

Uniswap reached its peak in May 2021, a few weeks after Bitcoin reached its first peak in the year. However, Uniswap didn’t mimic the next peak, and it has been downhill for the crypto ever since. It’s currently trading at one-seventh of its peak price. But it has already started to recover and has seen a sizeable jump from its lowest price in the last 30 days (about 25%).

If it keeps going up at this pace, possibly sustained by the crypto market’s recovery as a whole, you may see a significantly higher recovery from this small crypto than you would with the larger ones like Bitcoin and Ethereum.

An Ethereum alternative

Solana (CRYPTO:SOL) is one of the most well-known Ethereum alternatives currently available in the crypto market, especially for non-fungible tokens. Solana offers its users significantly lower gas fees, faster processing times, and a more environmentally friendly blockchain.

This and a few other technological edges are pushing Solana upwards, and it’s already one of the 10-largest cryptocurrencies by market cap.

Unlike Uniswap, Solana reached its highest peak around the second Bitcoin spike in 2021 (in November) and was trading for $322 per unit. Now, it’s below $50.

So, even if it reaches the $300 mark in its recovery journey, you can expect 600% growth if you buy now. Solana’s price has been relatively stable since June — another parallel to Bitcoin, so you may want to keep an eye on the crypto leader to predict Solana’s recovery.

Foolish takeaway

Crypto investing in Canada is attracting more value buyers lately, thanks to the widespread discounts and brutal slumps in the crypto market. Uniswap and Solana are just two of the many cryptocurrencies you can buy at a heavy discount right now in the hopes that the recovery will take them to, or at least closer to, their former peaks.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Bitcoin, Ethereum, Solana, and Uniswap Protocol Token. The Motley Fool has a disclosure policy.

More on Investing

A cannabis plant grows.
Cannabis Stocks

Canopy Growth Stock Is Rising But I’m Worried About This One Thing

Canopy Growth stock is soaring as the legalization effort makes real progress in both Germany and the United States.

Read more »

young woman celebrating a victory while working with mobile phone in the office
Investing

3 Roaring Stocks to Hold for the Next 20 Years

These top TSX stocks are excellent long-term buys, given their multi-year growth potential and solid underlying businesses.

Read more »

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

grow dividends
Investing

Here’s My Top 3 TSX Stocks to Buy Right Now

Even though the TSX has been rising, there are still some good bargains out there. Here are three top compounding…

Read more »

Target. Stand out from the crowd
Investing

Prediction: This Canadian Growth Stock Could Double by 2030

Alimentation Couche-Tard (TSX:ATD) is a top growth stock that could do well over the next six or so years.

Read more »

Businessman holding AI cloud
Tech Stocks

Could Investing $20,000 in Nvidia Make You a Millionaire?

Nvidia stock has made investors millionaires in the last 10 years. Is it too late to invest to become a…

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

money cash dividends
Stocks for Beginners

Have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

If you're looking for cheap stocks, these three have a huge future ahead of them, all while costing far less…

Read more »