At a time when Bitcoin (CRYPTO: BTC) is up a head-spinning 60% for the year, and several popular altcoins are up more than 50% for the year, the underperformance by other top cryptocurrencies is particularly jarring. Of the cryptos that rank in the top 40 by market cap, one-quarter of them are down more than 10% for the year.

Two names that stand out for me are Avalanche (CRYPTO: AVAX), down 20% for the year, and Polygon (CRYPTO: MATIC), down more than 30% for the year. It's been a tough year for both of them, but I wouldn't rule them out entirely as potential investment targets. Both have key catalysts in place that could help them pop sooner than you might expect.

Let's start with Avalanche, which first burst into prominence as a potential Ethereum killer back in 2020. After rocketing in price up to an all-time high of $146.22 during the last crypto bull market rally, Avalanche is down 94% and is now trading under $10. There's a huge discount here for crypto investors, but the big question is whether or not Avalanche's best days are behind it. While it's undeniable that user growth and transaction activity are down on the main Avalanche blockchain, two key catalysts could be setting the foundation for strong long-term growth. 

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Source Fool.com