- 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
PancakeSwap loses nearly 3% value intraday as the DEX crosses $1 billion in trade volume
Decentralized exchange (DEX) PancakeSwap (CAKE) announced in an official tweet that it has crossed $1 billion in trade volume on the Layer 2 chain, Base. CAKE on-chain metrics support the thesis of a recovery in the DEX token’s price.
Shiba Inu hits new milestone, over $9 billion worth of SHIB tokens burnt
Shiba Inu (SHIB), the second-largest meme coin in the crypto ecosystem, recently hit a milestone in the volume of tokens burned. Shiba Inu has burnt over 410.72 trillion SHIB tokens since the inception of the burn mechanism in the project, worth over $9 billion.
Dogwifhat crashes 60%, but here's why you should not buy WIF yet Premium
Dogwifhat (WIF) price shows a slowdown in the bearish momentum as it sets up a potential range. This development could lead to a good buying opportunity from a long-term perspective.
XRP struggles to overcome $0.50 resistance, SEC vs. Ripple could enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.