- Ethereum alternatives Solana, Cardano and Polkadot network’s traders are cycling into small market capitalization tokens in 2023.
- Traders are hunting returns in small caps CBG, MITX, MTH, TRADE, PLSPAD, RBN, SLP and POND, looking for undervalued cryptocurrencies this cycle.
- Active address count on small caps witnessed a massive spike since January 17.
Holders on Ethereum-killer networks Solana, Cardano and Polkadot have started cycling into small market capitalization cryptocurrencies, hunting undervalued tokens. Small market cap altcoins like Chainbing (CBG), Morpheus Labs (MITX), Monetha (MTH), Polytrade (TRADE), PulsePad (PLSPAD), Ribbon Finance (RBN), Smooth Love Potion (SLP) and Marlin (POND) have witnessed a massive spike in daily active addresses on their network.
Also read: Cardano network battles node outage, proves resilience among Ethereum killers like Solana
Solana, Cardano and Polkadot traders are cycling into small caps for massive returns
Ethereum network’s alternatives and large market capitalization cryptocurrencies like Solana, Cardano and Polkadot yielded massive gains for holders in the first three weeks of January 2023. Enjoying a relatively high correlation with Bitcoin, these cryptocurrencies witnessed a rally since the beginning of 2023.
Interestingly, analysts at crypto intelligence firm Santiment have noted a shift in traders’ interests. Experts identified that traders from the Solana, Cardano and Polkadot networks are cycling into small market capitalization tokens, lesser-known cryptocurrencies like CBG, SLP, TRADE, RBN, among others.
The daily active address count for these tokens climbed steadily since January 17, as seen in the chart below. The increase in address activity is accompanied by a price rally, with nearly double-digit overnight gains in most of the small-cap tokens on the list.
Small Caps witness spike in activity
The trend identified by experts at Santiment marks a shift in traders’ outlook on small-cap tokens. Traders are hunting undervalued tokens with bullish potential as diversification opportunities and risk mitigation. Most of the small market cap tokens seen in the chart above have a relatively low correlation with Bitcoin, this could help reduce risk.
In terms of use cases, CBG is dedicated to storing, indexing, analyzing, and sharing data on the blockchain. Morpheus Labs is a blockchain company providing businesses with a full-service Blockchain-Platform as a Service (BPaaS) solution. MTH, TRADE and RBN are tokens of financial services firms; PLSPAD is a launchpad for cryptocurrencies.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.