May 2020 started hoping that we might just have found the bottom of this prolonged bear market. However soon, disaster struck us. UST, the very popular decentralized Stable coin, unpegged. This moved the entire crypto-economy into a downward spiral.
Investors usually consider stablecoins as safe havens. Considering the bear market, many of them moved to stablecoins to keep their net worth safe. Following the popularity of DAI in previous years, UST gave an alternate option to store their value safely. However, they lost money due to the unpegging. Also, the price of the governance token (Luna) fell to near zero. In the meantime, BTC dumped, and so did the other major coins. So what should we do now? Here there are Top 5 Coins that are very good projects to look at:
What to Invest in Times of Crisis?
Well, of course, we do not recommend you close your positions (non-Luna and non-UST positions). The only thing you need to do is revisit your portfolio and check if it is ready for the next bull market.
In case, you have Large Cap coins with great potential, buy the dip (Dollar Cost Average). However, in case you have lots of mid-caps or low caps, it’s time to re-evaluate. We are sure, they have dipped a lot. Some of them might not recover again.
But the positive point is, that some fundamentally strong coins have also dipped, and you can easily switch your positions in between these coins with a negligible loss. If you have spare money, you need to wait for some time for the market to settle down.
In short, invest in the best coins once you think it is the bottom (you will never be able to time one, a bit of plus and minus is fine). Select these coins in such a way that they give you the best balance between risk and rewards. Here are our top 5 picks for this month:
1. Ethereum (ETH)
Ethereum is changing. With EIP 1559, Ethereum has already changed its gas-fees structure. This has resulted in fewer gas wars (up to a certain threshold) and thus reduced transaction costs. Ethereum has also introduced a token burn mechanism that is working smoothly. We now need to see an increase in the transaction speed and a further reduction in transaction prices. This will be introduced in Ethereum 2.0. With this upgrade, Ethereum will move from a Proof of Work consensus mechanism to a Proof of Stake consensus mechanism.
On the other hand, Ethereum has seen its TVL (Total Value Locked) moving to other chains. However, the recent performances of these chains (Solana shutdown and Luna crash) have proved that they are not as reliable. Ethereum’s developer community remains the strongest and with the upcoming innovations, the TVL will come back.
2. Cosmos (ATOM)
Did you know that Terra is a blockchain built on the Cosmos SDK? What does that mean? Does it harm the reputation of Cosmos? It enhances Cosmos’s reputation. It proves that Cosmos is more resilient. Therefore, Cosmos can build an ecosystem of projects who in turn have their huge ecosystems.
Cosmos NFT Showcase: Women From Cosmos, DJz of DGEN, Orbital Apes, Alpha Centaurian https://t.co/kQXadeB27d
— Cosmos Chjango (looking for Rust engineers) (@chjango) May 12, 2022
Some great projects like Kava and Secret Network are already taking Cosmos to great heights. The introduction of the IBC (Inter Blockchain Communication) Protocol has opened up a whole new world of cross-chain transfers without the risk of bridge hacks.
3. Polkadot (DOT)
Polkadot has been slowly taking all the positive steps. It is onboarding Parachain slots regularly. Projects like Moonbeam and Astar have been growing in TVL. Therefore, the ecosystem has a lot of synergy, with some major projects rooting for Acala’s aUSD to become the major stablecoin. The network has been running smoothly with zero downtime. Along with Cosmos, Polkadot has the potential to become the blockchain of the future.
Existential Deposits ensure Polkadot & @kusamanetwork maintain peak performance and reduce fees by eliminating unnecessary bloat from storing empty accounts, or accounts with less than a DOT, on the network.
— Polkadot (@Polkadot) May 14, 2022
4. The Sandbox (SAND)
There are only 2 true decentralized Metaverses. Decentraland and The Sandbox. Both these tokens have shown huge resilience in the Bear market. They are the most advanced in terms of development, have great partnerships, and have great leadership teams and communities. If the Metaverse is the future, then The Sandbox and Decentraland are the way forward. We are going for The Sandbox, as it has a lower market cap and lowers land prices than Decentraland.
We continue to bring value to our LAND Owners.
ROADMAP 2022 for LAND Owner
SAND Airdrop to all LAND Owners
CLAIM, STAKE, BUY, PLAY, BUILD, MIGRATE and…MEET.
Discord AMA on May 20th @ 3PM UTC
Read on for a breakdown by topic below… pic.twitter.com/yZY59bJrCO
— The Sandbox (@TheSandboxGame) May 13, 2022
5. PolkaFoundry (PKF)
Compared to the others in the list, PolkaFoundry is a relatively low market cap project. It has an IDO Platform called Red Kite. Red Kite is one of the Top IDO platforms and if you hold PKF you will be able to participate in the IDOs in the coming bull market. Many of the IDOs launched by Red Kite in the last bull run has given returns of more than 10x. This includes Bloktopia.
Gear up! Good news has arrived! $PKF is on a list of 50 tokens on the Ethereum network that could be listed on Coinbase by the end of Quarter 2
It's time for your $PKF to work for you!
— PolkaFoundry (@PolkaFoundry) April 12, 2022
Note: Bitcoin (BTC) is a must-buy in all portfolios. In this bear market, it has dipped lesser than the other top coins. So as a ground-rule, we accumulate strong projects with better multipliers in a bear market. And then in the Bull market, we move back to stablecoins (not UST) and BTC.
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