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Should you buy any of these cryptocurrencies while they cost less than $1?
If you’re looking for potential bargains in the crypto market, the good news is that a surprising number of the most popular cryptocurrencies are trading for less than $1. In fact, some of them are trading at discounts of up to 80% to their counterparts. historic highs. On the surface, this would seem to make them cry out for purchase, right?
The answer is not as obvious as you might think. Let’s take a closer look to see if any of these cryptocurrencies trading for less than $1 are worth buying right now.
XRP
XRP (CRYPTO:XRP) is the seventh largest cryptocurrency with a massive market cap of $27 billion. However, XRP is down 21% year to date and trades for just $0.48 at the moment. At one time, XRP traded at $3.84, but that was in January 2018. During the previous crypto market rally, XRP came nowhere close to reclaiming its all-time high.
While XRP has several potential catalysts, the only one that really matters now is the resolution of its long-running SEC lawsuit. According to the SEC, XRP is a security, not a cryptocurrency, and this has obvious existential implications.
That being said, crypto bulls firmly believe that Curling (the creator of the XRP token) will emerge victorious, causing the price of XRP to skyrocket. That may be true, but you’re also taking on a lot of regulatory risk. Don’t forget: the SEC intends to impose a massive $2 billion fine on Ripple. Even if Ripple wins the case, it could still owe a lot of money. Therefore, there is no guarantee that XRP will ever regain the charm it enjoyed more than six years ago.
Dogecoin and Shiba Inu
Both Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) are meme coins, which basically means they are completely disconnected from the world of fundamental financial analysis. Like meme coins, they have little to no use and there is no good way to value them.
While both meme coins are up over 50% year to date, that’s not as impressive as it sounds. Dogecoin is trading for just $0.14 currently, while Shiba Inu is trading for the ridiculously low price of $0.00002.
Dogecoin and Shiba Inu are purely meme coins. Image source: Getty Images.
Although Shiba Inu has taken some steps to add utility to blockchain users, it suffers from a massive oversupply of coins. There are 589 trillion Shiba Inu coins in circulation, so the mathematical chances of this crypto reaching the $1 level are almost zero. A price of $1 would imply a market value of $589 trillion, which is approximately 15 times greater than the current market value. S&P 500!
The outlook for Dogecoin isn’t much better. This meme coin has been around for over a decade and has never, ever surpassed the $1 mark. This is despite billionaire Elon Musk being a huge supporter of this coin. During the peak of meme coin popularity in 2021, Elon Musk even appeared during a comedy skit on Saturday Night Live as “The Dogefather.” Unfortunately, Dogecoin’s value has declined by 80% since then.
The story continues
Cardano
Finally, there is Cardano (CRYPTO: ADA), which was once a close rival to Ethereum (CRYPTO: ETH). The two cryptocurrencies share much of the same blockchain DNA, as Cardano co-founder Charles Hoskinson also co-founded Ethereum. But Cardano never lived up to its initial promise and now appears at risk of being eclipsed by newer blockchain rivals such as Solana.
Add in the fact that the SEC appears to be on the fence about whether or not Cardano is a security, and you can understand why Cardano’s price seems permanently frozen below the $1 level. day, although Cardano has had some success with a recent foray into decentralized finance (DeFi). Cardano currently trades for just $0.42 and is down 86% from its all-time high.
Beware the Crypto Bargain Basement Box
There is a lesson to be learned here. Hunting for high-quality cryptocurrencies trading for less than $1 is similar in many ways to looking for a good deal in the “clearance” section of your favorite store. You probably won’t find what you’re looking for in the right size or color. And if you find something you like, it probably has some hidden flaw that you won’t discover until you get it home.
So be careful with the crypto bargain basement box. Just because a cryptocurrency is trading for less than $1 doesn’t mean it’s a “bargain.”
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Dominic Basulto has positions in Cardano, Ethereum and Solana. The Motley Fool has positions and recommends Cardano, Ethereum, Solana and XRP. The Motley Fool has a disclosure policy.
Should you buy any of these cryptocurrencies while they cost less than $1? was originally published by The Motley Fool