In the current cryptocurrency landscape of 2023, the majority of top digital assets are experiencing substantial gains. Bitcoin (CRYPTO: BTC) has surged over 107%, while Solana (CRYPTO: SOL) has witnessed an impressive increase of more than 650%. However, amid this bullish trend, some cryptocurrencies are still trading significantly below their all-time highs from two years ago, presenting intriguing investment opportunities. Noteworthy among them are Avalanche (CRYPTO: AVAX) and Chainlink (CRYPTO: LINK).
Avalanche, once reaching a peak of $146 during the previous crypto bull market rally, is now trading at $40, marking a substantial 70% discount from its highest point. Recognized as a formidable competitor to Ethereum (CRYPTO: ETH), Avalanche has earned the moniker of an “Ethereum killer” due to its superior speed and cost-effectiveness. Providing a comprehensive suite of features akin to Ethereum, including non-fungible tokens (NFTs), decentralized finance (DeFi), blockchain gaming, and Web3 applications, Avalanche has recently gained attention for its innovative crypto collectibles. These collectibles, similar to the popular Bitcoin Ordinals, now constitute 95% of all transactions on the Avalanche blockchain, indicating a growing trend. With a recent surge of over 90% in the past 30 days, Avalanche could be poised for a robust start in 2024, potentially driven by the positive performance of its counterpart, Solana.
Chainlink, another cryptocurrency that experienced significant growth during the last crypto bull market rally, reached a high of $53 in 2021. Currently priced at $15, Chainlink presents a discount of more than 70%. Chainlink’s uniqueness lies in its role as a decentralized blockchain data oracle, serving data to smart contracts. This critical function positions Chainlink at the heart of data exchange in the blockchain sphere, especially in decentralized finance where real-time data access is crucial. Chainlink’s earlier surge in value was fueled by the DeFi craze, and in 2023, it has reintroduced a compelling idea involving the integration of artificial intelligence (AI) and blockchain. While some concepts may not be immediately captivating, Chainlink’s potential to pioneer a groundbreaking application at the intersection of blockchain and AI could propel its value in the years ahead.
Investors should exercise caution as both Avalanche and Chainlink are speculative investments in a volatile crypto market. Past instances have shown these cryptocurrencies soaring before experiencing significant downturns. Diligent research is imperative to understanding why these assets are trading at steep discounts, considering the efficiency of the market. However, for those intrigued by deep discounts and willing to embrace risk, both Avalanche and Chainlink could be cryptocurrencies to watch heading into 2024.
As with any investment decision, it’s essential to assess your risk tolerance and conduct thorough due diligence. While these cryptocurrencies present potential opportunities, it’s important to note that The Motley Fool Stock Advisor analyst team has not included Avalanche in their list of the 10 best stocks for investors. Investors are encouraged to explore a variety of investment options and consider professional advice tailored to their individual financial goals and risk appetite.