Determining the cryptocurrencies to buy and sell is notoriously irrational at times. Hype and speculation often fuel short-term gains rather than real-world utility. As a result, investors can get caught up chasing meme coins or obscure altcoins in hopes of quick profits. However, not all cryptos are created equal when it comes to long-term viability.
It’s wise to take profits on overextended coins that are unlikely to reach new highs in the next cycle. These could be meme coins that have had their time of fame or obscure alts that lack developer talent or real adoption. Meanwhile, more promising utility cryptos with strong fundamentals may still have substantial upside, even from today’s prices.
Shifting funds from overbought cryptos into more sustainable projects could pay major dividends over the long run. The projects with real utility are far more likely to stand the test of time and deliver steady growth year after year.
A concept image of cryptocurrency with three coins.
Dogwifhat (WIF-USD) has undoubtedly been the breakout meme coin of this cycle so far. As a newer meme token built on the fast-growing Solana (SOL-USD) blockchain, it has absolutely exploded in popularity in recent months. At the time of writing, WIF has a staggering market capitalization of $3.5 billion, making it one of the largest meme coins on the market. There’s no denying it has delivered tremendous returns in a short timeframe.
However, dogwifhat may be getting a bit overheated at current levels. Solana’s low fees have enabled speculation in WIF and other Solana-based altcoins, but hype-driven gains can be difficult to sustain long-term. While further near-term rises are certainly possible if the meme coin craze continues, WIF lacks the real-world utility and fundamentals that typically enable cryptos to reach new highs cycle after cycle. Once the spotlight fades, WIF could struggle to remain relevant.
For those reasons, investors should consider taking some profits on WIF here before momentum stalls. Meme mania won’t last forever, and more sustainable crypto projects may soon take center stage again. WIF has likely peaked for this cycle, so the time to sell may be approaching faster than many realize.
Banano (BAN-USD)
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Banano (BAN-USD) actually boasts some intriguing real-world use cases to back up the hype. As a fork of the instant, feeless DAG-based crypto Nano, Banano leverages a similar architecture that enables free, near-instant transactions. This gives it an inherent utility as a payment coin that many speculative meme tokens lack.
But Banano’s most exciting use case is its ability to leverage user-contributed computing power for medical research. By allocating their GPU resources to Banano’s Folding@Home initiative, users can contribute processing power to disease research and earn BAN tokens as an incentive. This provides a sustainable source of demand for the coin as the need for distributed computing power grows.
With Banano’s market cap still at just $11 million despite an avid fan base, I believe the coin remains undervalued relative to its potential. If Banano continues gaining support and expands to additional exchanges, the price could explode. I’m bullish on BAN’s capacity for substantial further growth this market cycle if Redditors and research organizations utilize its network more heavily moving forward.
Internet Computer (ICP)
Intercept Pharmaceuticals logo on its webpage on a computer screen. ICPT stock.
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Internet Computer (ICP-USD) looked poised to disrupt the crypto industry with its unique approach to on-chain computing and decentralization. However, ICP tokens have cratered from all-time highs.
Some renewed speculative interest has boosted ICP in recent weeks as altcoins have rallied. But make no mistake — this temporary bounce should not be viewed as a convincing recovery. I believe now is the time to abandon ship entirely on this controversial crypto before losses mount further.
A key long-term headwind that should concern investors is Internet Computer’s astronomical token inflation schedule. An overwhelming amount of ICP will enter circulation in the coming years, massively diluting the value of current holders’ stakes. With little ecosystem adoption and activity to show for such extreme dilution, ICP appears fundamentally flawed.
Sure, Internet Computer still operates in red-hot emerging sectors like DeFi, NFTs, and the metaverse. However, with better-positioned alternatives available, there is no reason to weather the perpetual inflation storm that ICP has in store. The window to sell may shut quickly if ICP rolls over, so investors should strongly consider rotating funds into other cryptos with superior tokenomics and real-world traction.
Golem (GLM-USD)
The Golem (GLM) crypto on a purple background.
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Golem Network (GLM-USD) is an open-source peer-to-peer marketplace for computing resources. Golem leverages crowd-sourced power to offer affordable, distributed processing for tasks like scientific research and machine learning.
By splitting complex computations into smaller pieces and farming them out across the network, Golem can slash costs and accelerate timelines beyond what centralized cloud services can offer. Compared to Internet Computer’s lofty $7 billion market cap, Golem looks attractively valued at just over $500 million.
As distributed computing demand booms in the coming years, I believe Golem’s impressive track record and real-world usage cases should drive strong growth cycles for the GLM token.
On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.