6 Most Undervalued Crypto Projects to Invest in for 2025

• Undervalued cryptocurrencies are assets that are considered to be trading below the market valuation that they deserve
• Undervaluation is usually associated with the project’s stage of development and market recognition
• Investors can spot undervalued projects by evaluating comparative projects, the fundamentals, growth catalysts, community, tech and marketing efforts
• Undervalued projects present opportunities but also risks relating to their volatility, viability, reputation and stage of development

Let’s check out some crypto assets that we feel may be critically undervalued and look at why.

To know if a crypto project is undervalued, there are several parameters that you can evaluate. Here’s a brief checklist of some of the main factors you should consider.

Check Project Fundamentals

Before you tag a project as ‘undervalued’, ask the following questions:

1. What does the project do?
2. And who are the team behind it?

Projects with a solid utility and a dedicated and experienced team are set on the right path. Regardless of their current valuation, they have a high chance of growing into more relevant projects in the future. Evaluate the use cases of the project and how the team is trying to grow the project. For meme coins, consider the narrative and the community’s dedication.

Assess Catalysts for Growth

Growth catalysts are current and future events that could impact a project’s growth significantly. Undervalued projects with several positive catalysts could be set for more growth in the future. Evaluate events that could boost or limit the demand for the project in the future before tagging a project as ‘undervalued’.

Compare with Other Projects in the Same Category

Check the value of other projects with similar fundamentals. For instance, if the project is a DePIN project in the decentralized storage category, compare its current value and stage of growth with similar projects in that category. This gives you an idea of the market structure and demand for such services. If the project continues to grow, it could reach the value of other bigger projects in that category.

Evaluate Current Tech and Marketing Efforts

Projects with solid fundamentals and good technology but poor or unsuccessful marketing are usually undervalued. This is because other investors have yet to learn about the project. As the marketing improves,the chances are that the value will grow because more investors hear about the project. High-tech projects discussed in close communities and listed on a few exchanges fall under this class.

Review Community Growth Data

Check how the project’s community has grown over the years. Consistent growth in community size and user base and relatively slower price growth suggest that the project is undervalued. Community growth shows that the project is appealing to more investors, and the price could catch up with this growth in the near future.

While undervalued projects deliver high profits, they are high-risk investments as well, for following reasons:

Extreme Volatility

Cryptocurrencies are volatile. Projects you may consider to be ‘undervalued’ could be exposed to a higher level of volatility for the same reasons that impede the growth of the asset’s price. Constant swings in the value of the asset may be unattractive to traders. Extreme volatility is also negative for profitability.

Poor Market Viability

Sometimes, a project is undervalued because it is unable to grow a viable market. This might be because it is not listed on a good crypto exchange or because many traders are not interested in it. Investing in such a project might expose you to more risks due to low liquidity. Low liquidity causes high slippage, and this could impact your profit significantly.

Team’s Reputation

Before you call a project ‘undervalued’ check how much effort the team puts in building and marketing the project. Undervaluation may stem from the team’s inactivity or bad reputation. Investors are always weary of investing in a project run by an irresponsible team.

Stage of Development

Undervalued projects are sometimes at their early stage of development or stuck in a certain stage. Both scenarios are filled with uncertainties. Many new projects fail while several projects that hit an obstacle in their growth fail to make it past this stage. By investing in these projects, you are betting on their chances of scaling through these challenges. Sometimes, this is not the case and could result in significant losses.

ZkSync ($ZK)

ZK is the native token of the ZkSync network. ZkSync is an Ethereum scaling solution that uses Zero-knowledge and Roll-up technologies to improve the speed and cost-efficiency of blockchain transactions. ZkSync is a layer-2 network. It creates an external execution environment and uses the roll-up technology to submit data or transactions executed in this environment to the Ethereum mainnet. Roll-up technology bundles multiple transactions into one and executes them at the speed and cost of a single transaction. This saves costs and executes transactions faster.

Despite a market cap of $600 Million, ZK is one of the most undervalued cryptocurrencies. The current valuation is mainly due to the poor airdrop program and the crypto winter. The project has shown consistent growth in users and community size. The ZkSync team is also committed to the project’s development. ZK is also listed on several top exchanges and has a relatively viable market. As the project moves past the airdrop event, the value could improve significantly.

Helium Network ($HNT)

Helium is one of the most undervalued DePIN projects. It is a DePIN for internet connectivity. Helium enables mobile and IoT devices to communicate through a decentralized connectivity network. Helium has recorded consistent growth in users throughout 2024 and will look towards an even faster growth in the coming year. This is because of a general increase in demand for decentralized connectivity solutions. As IoT device users seek a more secure, efficient, and rewarding connectivity medium, Helium could become a top choice. The project has shown consistency and has grown a large community.

$HNT is down 87% from its all-time high of $54. The asset trades below $10 at the time of writing. However, the project’s relevance has increased, compared to when it reached its record high. Helium ticks the boxes for undervaluation, despite having a market cap of over a billion dollars. The asset is listed on several top crypto exchanges.

Taraxa ($TARA)

Taraxa is a layer-1 DAG network. It is an EVM-compatible DAG (Directed Acyclic Graphs) that is capable of executing smart contracts and running decentralized applications. DAGs are considered more efficient decentralized networks as they are capable of executing transactions faster. Taraxa is the only EVM-compatible block-DAG capable of running smart contracts. Despite a slow growth in price in 2024, Taraxa had an eventful year. The project has established a connection with the Ethereum blockchain via the Taraxa bridge. It has also built a thriving ecosystem with relevant projects deploying on the network. Taraxa has also been listed on Defillama – the largest DeFi ecosystem tracker.

In terms of community, Taraxa’s community has also expanded. This is reflected in the increased social activity. With a market cap of just $30 Million, TARA is considerably undervalued. As the team makes more effort to grow the technology and market the project better, the project’s value is set to grow in the near future.

Render Network ($RENDER)

Render network is an on-demand GPU marketplace. It enables developers to access cheaper and unlimited GPU power for building advanced computing protocols and developing high-quality graphics. Render Network is multichain, it is deployed on Ethereum and Solana networks. Both networks are known to be very liquid and used by most investors. With the growth in the AI sector, GPU demand has heightened. Developers are exploring better ways to obtain computing resources. Render offers this on a platter and goes a step further to develop a sustainable economy powered by the RENDER token.

RENDER is 47% down from ATH, however, the project has continued to build through the years. Growth in AI and the demand for extensive computing power are top catalysts for Render. The project also has a viable market. Render could be one of the top DePIN projects in the future.

 Wormhole ($W)

Wormhole is an interoperability protocol. It enables independent blockchain networks to communicate efficiently with each other. Wormhole hopes to solve issues associated with the current design of blockchains. Blockchain networks wish to communicate through a more secure and effective medium and Wormhole is working towards this.

The $W token was launched in 2024 and is already 84% down from its recorded all-time high. This is because of the selling pressure from the airdrop event and the crypto winter. The wormhole protocol itself has maintained efficiency. Wormhole has expanded to over 30 blockchain networks and has executed over one billion cross-chain transfers. The network has maintained positive usage statistics.

Jupiter ($JUP)

Jupiter is a Dex aggregator on the Solana network. It is one of the biggest DeFi protocols on Solana. Jupiter is a directory for decentralized exchanges. It collates viable routes for decentralized swaps and suggests the best path for an asset swap. This way, it saves cost and time for users.

The JUP token was launched in 2024 after the airdrop event. It is down 58% from its record high. With a viable market and a growing user base, Jupiter is relatively undervalued for a project of its size.

Our CoinHint analysts selected the projects discussed in this article based on criteria associated with temporal market perceptions. An asset could be undervalued for several reasons, some of which are discussed in the course of this article. However, keep in mind that the chances of the project growing beyond the current valuation depend highly on its ability to solve these problems. As an investor, it is important to consider the risks associated with investing in ‘undervalued’ projects and adjust your investments to suit these risks. Note that this applies to cryptocurrency investments in general. Also, note that there are no certainties that projects featured in the article will grow above their current valuation.