Dogecoin, XRP, VET, Ravencoin: Which alts present a good buying opportunity
Bitcoin and Ethereum, the two biggest cryptocurrencies are the most attractive investments. But with prices touching $46,071 and $3,232, it becomes difficult for everyone to actually invest in them.
So the question is what alternative coins can be the right investment and if their popularity is justifiable based on their performance?
Simply put, there are many coins ranging around $1. Now while that may seem like a good price for an entry point, buying large volumes again takes us back to the earlier problem. Thus people look for alternatives like Cardano and MATIC.
Thus, based on their recent demand here are the altcoins trading under $1 and analysis on if they are a good investment.
Based on price since July 21, Ravencoin (RVN) gained by 164%. The altcoin’s single-day rise on August 6 alone was 34% and is currently trading at $0.13. Dogecoin (DOGE) was trading at $0.25, while VeChain (VET) was moving close to $0.1, and XRP was moving higher at $0.8; they were up by 46.81%, 80.4%, and 54% respectively.
While these are good rallies when put against Cardano (ADA) and MATIC (of Polygon) which rose by 48.56% and 64.2% respectively, they become slightly better looking.
What about their volumes?
Once again based on volumes, some interesting figures come up. RVN’s real volumes were at $166 million at the press time which also peaked at $2 billion in March. DOGE despite low prices had volumes as high as $869 million. Following it closely was the controversial altcoin XRP at $461 million and finally lagging rather severely was VET at $89 million.
However, when these are put against the $1 range coins it’s a different picture. MATIC’s $129 million is considerably lower than even RVN and close to ADA’s $224 million volume.
Is developer activity a factor?
It is one of the biggest factors indeed. Developer activity (DA) represents the coin’s network’s strength and efficiency. Low DA equals to stagnating network. And looking at it, the image starts to become much clearer as to which coin is a better investment.
RVN has one to none DA at the moment and a terrible Hash Rate as well. DOGE’s DA continues to fall severely and VET saw a good rise on July 29. XRP here is the only one with an actually strong developer activity, making it an appealing coin.
So what should you choose?
Based on the above data, the factors in deciding a better investment, it becomes clear that likes of Ravencoin (RVN) come and go, with no actual value backing it up, it is not a good choice. Dogecoin (DOGE), the love of “Dogefather” does have some actual potential going forward and while it may sound absurd, under $1, it seems to be a good choice.
While VET isn’t exceptionally great its 80% rise supported with good DA makes it a substantial investment. Finally, XRP is the only coin here that has a stable, potential, and an investable future. Once it is done with the ongoing lawsuit, the altcoin could see some real-world use cases.
As traders, shorting and longing is a viable strategy, some of the above alts present opportunities to short while the ones with potential can be hodled.
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