Avalanche: A Hidden Gem
During the previous crypto bull market, Avalanche reached an impressive peak of $146. Today, it is trading at only $40, marking a substantial 70% plunge from its highest point. This sharp discount appears striking, especially considering that Avalanche is recognized as a formidable competitor to Ethereum. In fact, Avalanche is often referred to as the “Ethereum killer” due to its superior speed and lower transaction fees. Like Ethereum, Avalanche offers a complete suite of services, including non-fungible tokens (NFTs), decentralized finance (DeFi), blockchain gaming, and Web3 applications.
For instance, Avalanche hosts popular crypto collectibles similar to the highly sought-after Bitcoin Ordinals, building upon the concept of traditional NFTs. Notably, these collectibles have accounted for an astonishing 95% of all transactions on the Avalanche blockchain. Depending on one’s perspective, this surge in NFT-driven activity can either be exhilarating or concerning.
In the past 30 days alone, Avalanche has experienced a remarkable surge of over 90%, potentially setting the stage for a strong performance in 2024. From my analysis, one of the key reasons behind Avalanche’s impressive year-end rally is Solana’s exceptional growth. Since Solana and Avalanche share similarities in terms of their value proposition (both being direct rivals to Ethereum), many investors may now anticipate similar levels of success from Avalanche.
Chainlink: The Backbone of Data Exchange
Chainlink is another cryptocurrency that flourished during the previous crypto bull market. Currently priced at $15, Chainlink is trading at a significant 70% discount.
Chainlink’s primary function revolves around providing data to smart contracts, which are self-executable snippets of code. While this may sound like jargon, its practical implication is that Chainlink plays a pivotal role in data exchange within the blockchain realm. Immediate applications can be observed in decentralized finance, where real-time data access is crucial for smart contracts.
Back in the summer of 2020, decentralized finance was all the rage, with many anticipating its eventual takeover of traditional finance. Chainlink benefited greatly from the buzz and excitement surrounding DeFi.
In 2023, Chainlink has introduced a fresh concept involving the integration of artificial intelligence (AI) and blockchain. In May, Chainlink highlighted numerous ways in which AI and blockchain collaboration makes practical sense. While some ideas may not immediately capture attention, such as “authenticity verification,” there remains the possibility that Chainlink can conceptualize a groundbreaking application that combines blockchain and AI, propelling its success in the years ahead.
With both Avalanche and Chainlink trading at a massive 70% discount, it is crucial to consider the associated risks. If one believes in market efficiency, these substantial discounts may signify genuine reasons behind the price disparity.
However, as someone who enjoys browsing through final markdown bins in stores, I find the deep discounts on these cryptocurrencies intriguing. With the approach of 2024, both Avalanche and Chainlink possess the potential to experience significant growth.