On-chain metrics indicate that the Ethereum price is bottoming and undervalued, says a report by Fidelity Digital Assets.

On-chain metrics are showing that the Ethereum price is bottoming and undervalued, says a report by Fidelity Digital Assets.

The crypto behemoth has seen its BTC/ETH price chart hit the lowest level since mid-2020, and Ethereum layer two blockchains have clocked the highest combined user base ever, with 13.5 million active addresses.

However, despite this downturn, Fidelity says that most of Ethereum’s on-chain metrics and long-term fundamentals remain strong despite recent volatility.

What’s more, the crypto analyst noted that Ethereum’s MVRV Z-Score, which compares market value to realised value, has dropped to 0.18, which is “undervalued” territory.

The last drop below this level preceded a run to $4,000, which indicates that now might be a good time to buy.

Should Ethereum begin to recover in the weeks ahead, it will set the stage for altcoin prices to potentially give more significant gains.

With that in mind, here are four of the best cryptos to buy now.

Polygon

When it comes to Ethereum layer 2 blockchains, Polygon is the oldest and most well-established. It was founded in 2021 and has continued to expand its operations.

Recently, the project has introduced zero-knowledge (ZK) technology to its layer 2s, allowing for transactions to be completed quickly without sacrificing security or privacy. For a long time, this was one of the core goals for Ethereum developers, and Polygon was among the first to deliver it.

Another thing that separates Polygon from other Ethereum scaling solutions is that it isn’t just a single blockchain; it’s an ecosystem of layer 2s specialised in various tasks.

For instance, its layer 2s are used to develop new Web3 games, and it’s also launching Polygon Miden, a blockchain optimised for storing data off-chain with maximum privacy.

The project continues to push technological boundaries, which is why it could deliver substantial gains when Ethereum rises.

MIND of Pepe

MIND of Pepe is another project that is making real innovations inside the Ethereum ecosystem. It’s building an AI agent to find trading opportunities and launch its own crypto projects.

For those new to AI, an agent is an algorithm that can automatically make decisions and act without human oversight – it’s an evolution of language models like ChatGPT.

The MIND of Pepe agent will scan market and social media data to identify trends and opportunities. It will consolidate these into actionable insights and then share with $MIND holders, telling them what to buy and when.

And if it notices any gaps in the market, it can launch its own crypto projects to fill them. Token holders will also get insider access to these.

The project is undergoing a presale and has already raised $8.5 million. It’s also forging partnerships with leading crypto projects and exchanges.

Its aim is to decentralise the Web3 industry, and it’s enlisting the help of its community to decide on the project’s roadmap.

MIND of Pepe is bringing real AI utility to Ethereum, and it’s currently in its early stages. That’s certainly a setup that could result in big gains.

Uniswap

Uniswap is Ethereum’s leading decentralized exchange and also serves 11 other blockchains.

According to DeFiLlama data, it’s the fourth-highest-earning app in terms of revenue today, having earned a whopping $1.8 million in fees.

Something else to consider with Uniswap is that it’s expanding its ecosystem. For instance, it offers Uniswap Wallet, which focuses on a seamless and integrated user experience.

It also has Unichain, an Ethereum layer 2 blockchain optimised for DeFi, allowing developers to integrate stablecoins into their apps.

Like MIND of Pepe and Polygon, Uniswap’s continued push for blockchain innovation could make it one of the best cryptos to buy now.

Pendle

The real-world asset (RWA) and decentralized finance (DeFi) sectors are proving highly appealing to financial institutions, and Pendle is well-positioned to ride this wave.

It’s a project that focuses on yield generation and risk management. It introduces a concept called “yield tokenization,” which enables users to split an asset into its yield-bearing and principal components.

In turn, this allows users to earn fixed yield on volatile assets, which marks a real breakthrough for DeFi technology.

Pendle operates on Ethereum, Optimism, BNB Chain, and Arbitrum. Eight companies have audited Pendle’s smart contracts, reflecting its commitment to security.

The project offers an 8% yield on the USDe stablecoin, which is highly competitive. In comparison, if you staked USDe directly on Ethena, you’d earn up to 5% yield.

Pendle is unlocking new