5 Altcoins That May Be Undervalued and Why

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The current market context has seen many Altcoins drop to the bottom of the previous cycle, and even set new lows since their listing. Many investors have run out of capital, but some still have capital to seek opportunities. Altcoins that are considered undervalued will be prioritized for consideration.

The following are insights and observations from BeInCrypto on why the following Altcoins are considered undervalued.

#1. Sei (SEI)

According to BeInCrypto data, in terms of market value, SEI has dropped more than 80%, returning to the price level of the end of 2023 and also the strong support level of 2024, around $0.2. With a current market capitalization of around $1 billion and a fully diluted market capitalization (FDV) of around $2.2 billion, SEI may be undervalued and have the potential to increase in price in the future for the following reasons:

Sei (SEI) price performance. Source: BeInCrypto.
  • Artemis data shows that despite the price decline, the number of active addresses (including new addresses and returning addresses) has remained stable around 300,000, which is a 10-fold increase compared to September last year. This reflects the demand for the Sei network and investor expectations for Sei's fundamentals.
  • defillama data shows that the Total Value Locked (TVL) of Sei in USD has decreased due to the market price decline. But the TVL in SEI has just set a new ATH in February, with over 786 million SEI locked in various protocols. This is a sign that investors continue to hold SEI and have expectations for the Sei ecosystem.
  • The emergence of new Layer 1s like Monad and Berachain will drive increased interest in Layer 1. The competition will benefit SEI as the Layer 1 space attracts capital inflows. Especially when many investors are leaving meme coins to return to foundational coins.

Also Read: Daily Active Users on the SEI Network Increase by 1,000%

#2. Litecoin (LTC)

Litecoin (LTC) is no longer a strange Altcoin to investors in the market. Many Litecoin Holders have become discouraged and abandoned it because after 4 years of waiting, the price of LTC is still around $100, which is equivalent to the price at the beginning of 2021. However, 2025 may be the year that many drivers will push LTC to rise strongly, such as:

Litecoin (LTC) price performance. Source: BeInCrypto.
  • Litecoin is one of the Altcoins that Grayscale has been accumulating the most aggressively in 2024. Data from Coinglass shows that Grayscale has increased its LTC holdings to over 2 million LTC, completely contrary to the fund's continuous selling of BTC after the BTC ETF was approved. And Grayscale has also filed for a Litecoin ETF.
  • Not only Grayscale, but Nasdaq has also filed a 19b-4 form to list the Litecoin ETF of Canary Capital. If the Canary Capital Litecoin ETF is approved by the SEC, it could have a significant impact on the LTC price, similar to the way the Bitcoin price has been impacted by the approval of the Bitcoin ETF.
  • The Litecoin hashrate has set a new high in 2025, reflecting the strength of the leading PoW network in the market.

Investor Jonny has compared LTC to another PoW coin, Dogecoin (DOGE).

"Dogecoin has a market capitalization 6 times that of Litecoin but... the LTC network is clearly used much more. One coin is certainly undervalued compared to the other. I'm not against Doge, I'm just pointing out the obvious." - Jonny Litecoin commented.

#3. Filecoin (FIL)

Filecoin (FIL) may also be one of the Altcoins that has disappointed many holders in recent years. Although it has been listed on exchanges since 2018, the FIL price has not exceeded the 2018 level. At the current level of around $3.3, FIL is still 98% below its ATH. However, many reasons suggest that FIL has the momentum to rise strongly in the 2025 context.

Filecoin (FIL) price performance. Source: BeInCrypto.
  • 2025 is notable for the AI story. As AI continues to grow rapidly, Filecoin stands out as the infrastructure for decentralized, flexible, and scalable AI systems. Fast Company magazine in 2024 recognized Filecoin as one of the projects that will bring a breakthrough change in the field of AI and data.
  • Filecoin is also one of the Altcoins that Grayscale began accumulating in 2024, from 100,000 FIL to over 2 million FIL. And Grayscale has also reopened the private placement for the Grayscale Filecoin Trust.
  • Many open-source AI models will emerge in 2025 with increasingly powerful performance (such as DeepSeek). The demand for storage and integration of open-source AI models will lead developers to Filecoin solutions. Especially when there are AI models banned by governments.

"Decentralized AI needs a solid foundation. @LighthouseWeb3, supported by Filecoin, ensures secure and reliable storage for models like @deepseek_ai V3. Deployed on @Base with @CryptoEternalAI, it keeps data always available and tamper-proof—no downtime, no interference, no AI censorship." - Filecoin stated.

Also Read: How Open-Source AI Models Will Change the Crypto Market

#4. DIA (DIA)

DIA is an open-source oracle platform that provides high-quality data for Decentralized Applications (dApps). Providing reliable and accurate data is crucial in the blockchain and DeFi space, but the current token price of DIA may not fully reflect its true value.

Compared to other industry oracles like Chainlink (LINK), DIA may be seen as less prominent, although it has similar or even superior features and applications in certain aspects.

Comparing DIA with other Oracle solutions. Source: Slavic Crypto

Investor Slavic Crypto believes that DIA differs from other Oracle solutions in that:

  • Fully transparent: All oracle operations take place on-chain.
  • No permission required: Developers can take any data and deploy custom oracles.
  • Highly scalable: Modular design supports countless data sources across multiple chains.
  • Fully decentralized architecture, leveraging rollup technology.

"DIA will need to increase 150 times to reach LINK's market capitalization. Currently, it is still 15 times away from PYTH and 3 times from BAND. With a potential market capitalization of 1-3 billion USD, DIA has the opportunity to increase 10-30 times from the current level." – Investor Slavic Crypto predicts.

#5. ZKSync (ZK)

ZKsync has received significant attention from the community and other blockchain projects in recent times. The project has attracted substantial investment, raising nearly half a billion USD. However, the ZK token price may not yet be commensurate with these investments and support.

BeInCrypto data shows that the ZK price has dropped 60%, currently trading around 0.1 USD. Observing the Price/TVL ratio, it can be seen that this ratio has dropped sharply at the beginning of 2025. This reflects that the ZK price may not be proportionate to the total value that users have entrusted in the protocol.

The Price/TVL ratio of ZKSycn has dropped sharply. Source: Artemis.

On January 31st, ZKSync reported that UBS, a 5.7 trillion USD asset manager, is exploring how blockchain can optimize gold investments. To optimize efficiency, UBS has utilized ZKSync's Validium mode, a zero-knowledge rollup solution that enhances scalability by storing data off-chain.

RWA data shows that the ZKsync Era network is the second-largest (after Ethereum) in terms of the total value of Tokenized Real-World Assets (RWA) with nearly 2 billion USD. ZKsync Era is also the network with the fastest-growing RWA value share in the first month of 2025, with a 26.5% increase.

With strong fundamental factors supporting it, the ZK price seems to have been overly reacted to by the fear-driven market sentiment at the beginning of 2025. The trading psychology has caused a temporary price decline, and Yuki - the founder of Sorella Labs - believes this is a good sign, indicating that ZK is an undervalued Altcoin.

"The sentiment around ZK is currently at its lowest point ever. People are disappointed because they had too high expectations for ZK as a perfect solution for security, interoperability, and scalability in 2023. But that's a good thing. Because from now on, ZK will be UP-ONLY." - Yuki predicts.

Also Read: Predicting the Top 5 Potential RWA Coins to Watch in 2025

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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