2 purchases without evidence in the current crypto crash

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What goes up can come down – and it usually is. This is what we are currently seeing with cryptocurrency prices. After generating scorching returns for much of 2021, the latter part of the year and the start of 2022 have been downright lousy.

It is certainly possible that cryptocurrencies fall even further. However, the pullback could also present a great buying opportunity. Here are two obvious buys in the current crypto crash.

Image source: Getty Images.

1. Ethereum

Ethereum (CRYPTO: ETH) climbed over 400% last year. Now, however, it’s down more than 30% below the peak set in November. There are several reasons to believe that this decline will be only temporary.

For one thing, Ethereum has seen even bigger sales in the past and has made a good recovery. For example, the digital token plunged almost 60% in the middle of 2021. But within four months it had fully come back and increased even more than before.

Ethereum is also likely to gain wider adoption. The second phase of the Ethereum 2.0 upgrade is scheduled for this year. This will merge the already active beacon chain with the Ethereum mainnet. As a result, Ethereum will completely switch to a Proof of Stake (PoS) protocol.

The third and final phase of the upgrade is slated for 2023. When complete, Ethereum’s blockchain will be much faster, more scalable, less power hungry, and have significantly lower transaction costs.

Only Bitcoin (CRYPTO: BTC) currently has a larger market capitalization than Ethereum. With the Ethereum 2.0 upgrade, however, look for Ethereum to bridge the gap with Bitcoin a bit.

2. Avalanche

Avalanche (CRYPTO: AVAX) ranked among the stars of the crypto world in 2021. The price of its native token soared more than 4,500% at one point before ending the year up roughly. 3,380%.

Like Ethereum, however, Avalanche is now down more than 30% below its peak. The broader cryptocurrency crash brought the high-flying token in its wake. However, don’t think the good times are completely over for Avalanche.

Its blockchain remains the fastest smart contract platform to complete transactions. Bitcoin takes around 60 minutes to irreversibly add a transaction to the blockchain. Ethereum takes about six minutes. Avalanche does it in under two seconds.

And while Ethereum needs a major upgrade to improve its processing capabilities and lower transaction costs, Avalanche is already blazingly fast and has low transaction fees. It can handle over 4,500 transactions per second. Avalanche’s fees are also much lower than Ethereum’s despite peaking towards the end of last year.

The bottom line is that Avalanche has some competitive advantages that attract developers. To date, the Avalanche ecosystem has 160 projects, including blockchain wallets, stablecoins, and non-fungible token (NFT) exchanges.

Another large-scale project will soon be added to this list. The international accounting and consulting firm Deloitte has selected Avalanche’s blockchain to develop a disaster recovery system.

No one can know for sure how long the current crypto crash will last. Sooner or later, however, a rebound will come. Avalanche and Ethereum are expected to be two of the biggest winners when the rebound begins.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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