The cryptocurrency market soared to more than $3 trillion in value last fall. But in recent times, things haven't been so bright for this newish industry.
Russia's invasion of Ukraine hurt demand for many assets -- especially those considered risky, such as cryptocurrency. Geopolitical or economic uncertainty usually drives investors away from risk.
In most cases, though, what's going on in the world doesn't change the basic story of certain stocks or cryptocurrencies. And that means when their prices drop, it may be a great time to scoop them up. That's the situation for these two dynamic cryptocurrencies. They are dirt cheap buys right now.
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1. Cardano
Cardano (ADA 1.25%) has dropped more than 68% from its peak of nearly $3 in August. It's now trading for less than a dollar. And here's why that makes it a bargain: All of the excitement and growth for Cardano actually isn't behind us, it's just ahead.
Cardano originally set out a roadmap for development -- with its goal being to become a completely decentralized and self-sustaining blockchain. Developers are now working on the last two stages of the five-stage roadmap.
But what's even more exciting is this: Cardano developers also are working on a scaling system that could result in a major increase in capacity and transaction speed. It's a layer-2 solution called Hydra.
Each Hydra "head" can complete a transaction almost instantly. That's versus about 20 seconds for Cardano right now. Developers expect to launch the system either this year or in early 2023.
Cardano is likely to win on speed in the future -- an important point for any blockchain. And we can count on Cardano getting things right because it uses a system of peer review before launching any update. This may slow launches down a bit, but avoiding future glitches makes it worth the wait.
2. Algorand
Algorand (ALGO -1.29%) has declined nearly 70% from its high back in September. Like Cardano, it's also trading for less than a dollar but has plenty of potential to climb significantly from here.
Algorand is a blockchain network known for its speed and efficiency. Right now, it processes about 1,200 transactions per second, but soon, that will increase to 3,000. And the next goal is more than 45,000. All of this is with instant finality -- so the transaction reaches completion on the spot.
Algorand achieves all of this through the structure of its network and its method of verifying transactions. The blockchain is a two-layer system.
The first layer is meant for smart contracts and the creation of assets. The second layer is used for decentralized-application (dApp) development and complex smart contracts. The use of two layers limits congestion.
Algorand verifies a transaction through a pure proof-of-stake system, so verification power is given randomly to stakeholders -- not just to those with the largest stake. This preserves decentralization and enforces security.
Plenty of projects are happening on Algorand from finance to gaming. The Republic of the Marshall Islands even chose it to power its own digital currency.
Algorand has what it takes to stand out in the cryptocurrency market as it develops. And that could mean this crypto is greatly undervalued at today's level.
