Cryptocurrency Market Overview

Cryptocurrency prices remain under pressure this month as the crypto fear and greed index moved to the fear zone and Bitcoin imploded to the bear market. Prices dropped further due to concerns about the impact of Donald Trump’s tariffs on the US economy. This article looks at two cryptocurrencies and identifies one to buy and another one to sell: Polkadot (DOT) and Polygon (POL).

Crypto to Buy in 2025: Polkadot (DOT)

Polkadot’s price has crashed in recent years and currently sits about 91% below its highest level in 2021. It hovers near its lowest level on record, resulting in a market cap drop from over $52 billion in 2021 to $7 billion, with a total wipeout of $45 billion for investors. Polkadot has moved from a top-ten coin to ranking 20th.

However, Polkadot is still considered one of the best cryptocurrencies to buy this year due to its fundamentals and technicals. Its key fundamental aspect is its evolution from the traditional network to the new Polkadot 2.0.

Polkadot 2.0 will offer more features to enhance performance, including asynchronous backing for faster transaction confirmation and increased parachain capacity. It will replace the costly parachain auction process with an agile core time and implement elastic scaling for handling more tasks and improving block production capacity. These changes, alongside the repurposing of DOT as the universal coin in the network, may boost its price. Current data indicates that the volume of stablecoins in the Polkadot ecosystem is growing.

Strong Technicals for DOT

The weekly chart indicates that DOT’s price has not dipped below the key support level of $3.6 this month, showing resilience amid the ongoing crypto sell-off. This suggests that Polkadot has formed a quadruple bottom, along with a falling wedge pattern that indicates potential price increases in the future. If this occurs, the next target could be $12, which would represent a 170% increase from current levels.

Altcoin to Sell: Polygon (POL)

Polygon has experienced a significant decline in recent years. The network, known for introducing layer-2 solutions, has continued to lose market share. Despite the rebranding from MATIC to POL last year, it has not seen improvements.

Currently, Polygon has a total value locked (TVL) of $719 million, down from nearly $10 billion a few years ago. In contrast, other layer-2 chains like Arbitrum and Base Blockchain have over $2.5 billion and $3.1 billion respectively. Base Blockchain, introduced in 2023, has developed a stablecoin market cap of over $4.1 billion, while Arbitrum holds $3.65 billion.

The same pattern is evident in the decentralized exchange (DEX) sector, where Polygon managed to handle $3.4 billion in the last 30 days, compared to $24.1 billion and $23 billion for Base and Arbitrum.

Lacking a clear catalyst for price growth in the long term, Polygon’s price plummeted to a low of $0.20 this year, a 72% drop from its peak in November. The price chart indicates the formation of a bearish flag pattern, suggesting potential further declines in the near term.

The post 1 crypto coin to buy, 1 altcoin to sell in 2025: Polkadot, Polygon appeared first on Invezz.