Bitcoin (BTC) has lost as much as half its value since reaching an all-time high over $64,000 in mid-May. Other cryptocurrency prices have also fallen sharply and price rebounds in some cases have failed to hold. With the cryptocurrency markets experiencing extreme volatility in recent weeks, are you trying to decide what crypto to buy now?
It can be daunting in such an environment to choose which coins to invest in. Should you stay on the sidelines and wait for the market to stabilise?
If you’re wondering what is the best cryptocurrency to invest in right now, we’ve picked five possibilities for further research.
Best cryptocurrency to invest in for June 2021: from ETH to SUSHI
In light of recent price volatility, the top five cryptocurrencies to invest in include coins and tokens that have clear use cases that should drive their adoption over the long term.
The second-largest cryptocurrency by market capitalisation after bitcoin, ether has fallen sharply from its all-time high above $4,300 to around $2,300. The short-term outlook is somewhat bearish according to CoinCodex, with 15 technical indicators giving off bearish signals compared with 14 bullish signals. However, over the long term, market observers and forecasters expect ether to recover and rally to fresh highs, making it one of the best cryptos to invest in for June.
Trade Ethereum to US Dollar - ETH/USD CFD
The Ethereum blockchain executes smart contracts, which enable decentralised finance (DeFi) and non-fungible tokens (NFTs). These emerging applications are in their early stages and are expected to evolve into new markets, driving the use of the blockchain and increasing the ether price.
Ethereum is in the process of undergoing a series of upgrades, including a transition to the less energy intensive proof of stake (PoS) algorithm for processing transactions and EIP-1559 to reduce gas, or transaction fees. These upgrades are expected to further drive its adoption.
The ADA cryptocurrency, which runs on the Cardano blockchain, has risen rapidly this year to become the fourth-largest coin by market cap. Cardano is one of the largest blockchains that already uses PoS. The developers plan to launch smart contracts later in the year, offering an alternative to Ethereum for DeFi applications with high speeds and low transaction fees.
The ADA price has found relative support during the recent volatility. It’s fallen 53% from highs compared with a 55.5% decline for ether. A bounce sees it trading around 34.7% below its all-time high, at the time of writing. Ether remains around 45.3% below its peak.
Short-term sentiment for ADA is bullish, according to CoinCodex, with 23 technical indicators giving bullish signals, compared with just four bearish indications. For the longer term, forecasters predict the ADA price will move back above $2 and trade at fresh highs in the coming years.
The Polygon protocol, previously known as MATIC Network, aims to help developers create Ethereum-compatible blockchains. The protocol can then connect the blockchains so that Ethereum can become a multi-chain system that Polygon refers to as the ‘Internet of Blockchains’.
The MATIC price more than doubled on 26 May, having fallen from its all-time high reached on 18 May, after billionaire investor Marc Cuban confirmed he’d invested in the project.
:fire: @mcuban is one of the most prolific and insightful investors with investments in top startups and he is also one of the Sharks on @ABCSharkTank.— Polygon (previously Matic) (@0xPolygon) May 25, 2021
:raised_hands::skin-tone-2: We're proud to share that @0xPolygon is now part of the Mark Cuban company portfolio!
:globe_with_meridians: Visit: https://t.co/RZg0oIomFS
The price moved from $2.68 on 18 May to $0.75 on 23 May, rebounding to $2.44 on 26 May before slipping back below $2 in recent days. As such, the price has held up relative to other cryptocurrencies.
Short-term sentiment on the MATIC coin is , according to Coin Codex, with 24 technical indicators pointing to bullish signals, while five offer bearish signals. That is expected to lead to the coin reaching new highs over the long term.
SushiSwap is a decentralised cryptocurrency exchange (DEX) that launched in September 2020 as a fork of the Uniswap exchange. The SushiSwap platform charges a 0.3% fee on transactions in its liquidity pools. The SUSHI token rewards users with a share of the fee.
Following the recent selloff, SUSHI is trading around $10-11, down from its all-time high of $22.52 on 18 May. Some market observers note that based on its annual revenue from fees of around $1.39bn and a market capitalisation around $14bn, SUSHI is undervalued as it is worth no more than its income from a single year.
Right now, $SUSHI as a protocol is bringing in about $1.39B from fees on the DEX every year, with over $200M being distributed back to users on the platform.$SUSHI market cap = $1.8B— croissant (@CroissantEth) May 22, 2021
That's right, $SUSHI is nearly worth less than it makes in a single year.
Let that sink in...
Jeff Dorman, chief investment officer at digital asset management firm Arca, said: “SUSHI is now clearly mispriced even on a [fully diluted value] FDV basis after factoring in inflation.”
The short-term sentiment is bearish according to CoinCodex, with 15 technical indicators giving off bearish signals and eight indicators pointing to bullish signals. But forecasters like Digitalcoin predict the price will reach fresh highs by the end of this year.
A decentralised data processing network, Chainlink is one of the first protocols to facilitate the integration of off-chain data into smart contracts using an oracle network. This enables blockchains to interact with external data, events and payment methods securely, providing the information complex smart contracts need to support advanced features in decentralised applications and NFTs.
The LINK price reached $52.88 on 10 May, dropping to $15.09 on 23 May. It’s bounced to $29 in recent days. Some observers view the token as undervalued below $40. Forecasts predict it could return to that level later in the year.
In the short term, technical indicators are bearish, with 15 indicators giving bearish signals and 11 indicators offering bullish signals.
Cryptocurrency markets emerge from price crash intact
The long-term outlook for cryptocurrency market trends is positive, with institutional investors increasingly getting involved. Activist investor Carl Icahn told Bloomberg last week that “crypto is here to stay in one form or another”, and that he is considering investing as much as $1bn to $1.5bn in cryptocurrencies.
Crypto market observer and former Goldman Sachs executive Raoul Pal views the recent price crash as bullish for the long-term development of the cryptocurrency ecosystem. In a series of tweets, he noted:
“This is what I first saw in crypto back in 2012. A new, anti-fragile financial system that doesn’t break in times of stress, where ownership of assets is clear and losses are not mutualised to taxpayers. This was a big two weeks for crypto and for the future financial system.”
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