The crypto market has tumbled in recent days. The price of Bitcoin is down 25% since the start of May and the price of Ethereum is down 30%. Many altcoins have fared even worse – Terra Luna is down 99.9% after its TerraUSD stablecoin lost its peg to the dollar.
While many crypto investors are feeling short-term pain, now is the perfect opportunity to buy the crypto dip. The crypto market has gone through crashes before, and each time it’s come back stronger. After Bitcoin crashed in the spring of 2021, it roared back later in the year and more than doubled in value from the short-lived bottom.
That said, not every crypto is likely to rebound equally or quickly. So which cryptocurrencies should you buy on the dip?
We’ve picked out 5 cryptos that are worth watching right now. These cryptocurrencies appear to be significantly oversold during the May crypto crash and aggressive investors could be rewarded for buying while the rest of the market sells.
1. Lucky Block (LBLOCK)
LBLOCK is the official cryptocurrency of Lucky Block, a play-to-earn crypto game that offers a daily crypto giveaway to players. The platform gained immense popularity when it first launched, becoming the fastest crypto project to ever reach a $1 billion valuation.
Now, LBLOCK is worth slightly less than it was when the coin was first launched. The slide predates the current crypto panic – LBLOCK has been steadily losing value since hitting an all-time high in February. Right now, the token is off its high by around 90%.
That slide could come to an end soon, however, and LBLOCK may be an undervalued cryptocurrency. Lucky Block is starting its daily giveaway in mid-May, which means that LBLOCK token holders will start earning daily rewards. Instead of holding a token that has promised value in the future, LBLOCK investors will receive crypto income every single day. That’s very likely to increase demand for this token.
On top of that, Lucky Block has demonstrated that it has more than one innovation up its sleeve. The platform recently announced an NFT game that offers players a chance to win $10,000 every day. The sale of NFTs for the game alone could bring in $15 million in cash for Lucky Block, which the platform can use to build even more games in the future.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
2. DeFi Coin (DEFC)
DeFi Coin is the native cryptocurrency of the DeFi Swap decentralized crypto exchange. The coin has seen a lot of volatility, in large part because DeFi Swap was running behind on launching its exchange. However, the exchange finally launched earlier this month, and the price of DeFi Coin skyrocketed more than 500% overnight.
Since then, DEFC has been shedding value once again. The coin is now trading at $0.343, down nearly 40% from its recent high. It’s not clear if a bottom has formed yet, but it seems likely that the price will stabilize or reverse once speculation comes to an end.
When a bottom does form, DeFi Coin represents one of the best value buys in the crypto market right now. That’s because DeFi Swap designed this coin to encourage long-term investing. There’s a 10% fee every time someone sells DEFC, so there’s a lot of incentive to hold onto this asset rather than actively trade it. Over the long run, that should limit supply and push up the price.
In addition, DeFi Swap generously rewards DeFi Coin owners. The exchange offers a crypto interest account for DeFi Coin and pays out DeFi interest rates ranging from 30% to 75% APY. Those are very high rates compared to what other DeFi staking platforms offer. That alone could drive up demand for this coin as word about DeFi Swap’s new platform spreads.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
3. Tikka (TIKKA)
Tikka has been insulated from the May crypto crash by virtue of the fact that it hasn’t launched yet. This cryptocurrency, which is offered by Cube Wealth, is expected to launch sometime in the next few months.
With the Tikka token, you stand to benefit from Cube Wealth’s wealth management platform. Tikka holders will receive a share of advice and trading revenues from Cube Wealth. You’ll also get access to the platform itself, enabling you to take advantage of Cube Wealth’s investment management tools.
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From a fundamental perspective, there’s a lot to like about Cube Wealth’s platform and Tikka along with it. Cube Wealth is well-established in India, with more than $23 million in assets under management and 50% year-over-year revenue growth. The platform also has an 84% customer retention rate, indicating that its wealth management tools really are at the top of their class.
When it does launch, expect Tikka’s ICO to be more tepid than most recent offerings have been. With prices down throughout the market, crypto investors are likely going to be wary of any new altcoin. That means that you may be able to purchase Tikka at a bargain.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
4. Terra (LUNA)
Terra is a platform for creating algorithmic stablecoins that are pegged to currencies like the US dollar, Euro, British pound, and more. Until recently, it was one of the hottest new platforms in the world of stablecoins. The platform’s cryptocurrency, LUNA, soared 230% between February and April this year.
However, LUNA is now down more than 99.9% from its price at the start of May. A coin that just 2 weeks ago traded for more than $80 is now worth less than 1.5 cents.
The reason is that as crypto prices started to plunge, there was a run on the Terra USD stablecoin. The algorithmic supply and demand forces that are meant to keep 1 UST equal to $1 couldn’t keep pace, and the stablecoin lost its peg. At one point, 1 UST was worth less than $0.30. Predictably, investors lost faith in Terra, and LUNA has nosedived as a result.
Will LUNA recover? That’s far from certain – once a stablecoin’s reputation is damaged, it’s hard to repair. But given that this stablecoin was the darling of the crypto world only a few weeks ago, it could be worth taking a chance that investors will give it another try. The Luna Foundation Guard, the nonprofit that holds reserves for LUNA, has committed to massively increasing its reserves and will hopefully learn from this incident to prevent a similar run going forward.
Investing in LUNA is highly risky. But if the coin can turn things around, it could be one of the most rewarding long-term crypto investments coming out of the May crash.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
5. Fantom (FTM)
Fantom is another cryptocurrency that has suffered heavily during the recent sell-off. It’s now trading at just over $0.30 per coin, down more than 90% from the all-time high reached in mid-January.
The good news is that the price could be nearing a bottom. Fantom has a durable area of support around $0.22 per coin that it developed during the crypto crash last spring, and it hasn’t yet tested this support. At the same time, trading volume in this coin is relatively low, a potential indicator that selling pressure is beginning to fade.
Longer-term, investors can be bullish about Fantom because it has positioned itself as one of the most scalable and speedy alternatives to the Ethereum blockchain. Developers can upgrade existing Ethereum dApps (decentralized apps) to run on the Fanton blockchain relatively easily.
Still, it’s worth approaching Fantom cautiously if you’re looking at the fundamentals. Ethereum is still the most widely-used platform for running smart contracts, and competitors like Solana, Avalanche, and Polkadot are all developing similar platforms. The benefit to investing in Fantom right now is that it’s fallen further in the current crash than most of its peers.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
Conclusion
The May crypto crash has been tough on investors, but it’s also created an enormous opportunity to buy the dip. If you’re bullish on the long-term success of cryptocurrency, now may be a great time to double down.
Due to its innovative crypto gaming platform and huge price rises so far, Lucky Block could be the number one crypto to invest in at this time.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
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