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How to Find the Next Small Cap Gem?
"Small-cap gems" are the holy grail in the cryptocurrency world and are highly sought after for their potential for massive growth.
Small Cap gems are those cryptocurrencies with a relatively small market capitalization but are considered to have massive potential for growth and investment return.
Think of Dogecoin when it was trading at $0.002 and then four months later hit its all-time high of $0.33 (16,400% increase).
It's during the run-up phase of the market where we typically see the greatest growth within the cryptocurrency market, with small-caps often appreciating the most.
Over the next few months, we anticipate the market will move into the run-up phase, with the largest catalyst for this being the approval of Spot Bitcoin ETFs, which is anticipated to take place in early 2024.
In preparation for this shift in the market, I thought now would be a good time to cover how to find the next small-cap gems.
Searching Trending Crypto Categories
When looking for the next small-cap gem, in my experience it's best to start with finding sectors within the cryptocurrency market that are performing very well. CoinMarketCap has a category page, which shows the trending categories within the cryptocurrency space which offers a great starting position.
Currently, the biggest trending category is BRC-20.
What is the BRC-20 Protocol?
Introduced in March of this year, BRC-20 (Bitcoin Request for Comment 20), named after the Ethereum ERC-20 protocol (Ethereum Request for Comment 20) is basically Bitcoin's version of Ethereums ERC-20 (excluding smart contracts), which allows the use of ordinal inscription.
What is Ordinal Inscription?
Ordinals inscribe a serial number onto 'a satoshi' - the smallest currency unit of bitcoin. This serial number, along with the ordinal data, is inserted into a part of the Bitcoin transaction called the witness signature field, allowing data to be linked to a single satoshi.
An easy way to think of this is Ordinals = NFTs on Bitcoin.
Just like we saw the NFT craze in 2020-2021, we may just be at the beginning of an Ordinal craze, with "animal-named" ordinals already making record growth.
Of course, there are even well-known meme coins with their ordinals too...
There will always be chaff you need to weed through when searching for the next small-cap gem, as we have already seen with NFTs, Meme Coins, and now Ordinals.
But within the ordinal space, there are some solid projects.
One project worth looking into is Multibit (MUBI)
Ordinals - The Next Big Thing in Crypto?
Ordinals are just one of the many sectors within the crypto space that have the potential to perform very well, especially during the run-up phase in 2024. The key is to get into the market before the FOMO hits. If you would like to know what we are buying now, consider becoming a member.
Join Us - As We Accumulate
Now is still an excellent time to get into the market while prices are still relatively low. If you want to know what we are buying, you are more than welcome to join us as we share our monthly Altcoin picks in anticipation of the upcoming bull run - You just need to become a member.
Richard.
Top 100 Trending Altcoins:
The crypto market is full of green again this week.
Today's Crypto Fear & Greed Index:
Today's Crypto Fear and Greed Index = Greed –> Decreased to 70 (from 73).
Bitcoin & Ethereum Price Movement
Bitcoin decreased 4.89% in the last week, currently trading at $42,147. In the previous 90 days, Bitcoin has increased by 58.4%.
Ethereum decreased 5.4% in the last week, currently trading at $2,234. In the previous 90 days, Ethereum has increased by 36.3%.
Global cryptocurrency market capitalization has decreased to $1.59T (from $1.64T last week).
Top 100 Gainers - Last 7 Days
Over the last 7 days, the biggest gainers (within the top 100):
Bonk (BONK) +99% - Ranked #50
For the second week in a row, Bonk is the top 100 gainer. Bonk (BONK) is a dog-themed meme coin on the Solana blockchain, launched in December 2022. It aims to support Solana-based decentralized exchanges and enhance SOL token adoption. 50% of BONK's total supply was airdropped to the Solana community. It uses Solana's efficient consensus mechanisms and plans broad dApp integration. As of early 2023, BONK had a significant circulating supply and had seen notable growth in user base and market cap, with its development team remaining anonymous.
Osmosis (OSMO) +75% - Ranked #84
Osmosis (OSMO) is a notable cryptocurrency that serves as the native token of the Osmosis decentralized exchange (DEX), operating within the innovative Cosmos ecosystem. This DEX is characterized by its use of automated market maker (AMM) protocols, enabling users to trade cryptocurrencies without relying on a centralized intermediary. As a key part of the Cosmos network, Osmosis benefits from the ecosystem's interoperability and scalability features. The Inter-Blockchain Communication (IBC) protocol of Cosmos is a standout feature, allowing seamless asset transfers and communication across different blockchains.
Helium (HNT) +67% - Ranked #55
For the second week in a row, Helium makes this list. Helium (HNT) is a cryptocurrency that serves as the native token of the Helium Network, which is focused on creating decentralized wireless infrastructure. The Helium Network operates on a unique Burn-and-Mint Equilibrium model, utilizing multiple tokens. The primary function of HNT is to be burned to create Data Credits, which are used for sending device data over the network. These Data Credits have a fixed USD value and are the only payment accepted for data transfer on the Helium Network.
WOO Network (WOO) +65% - Ranked #80
WOO Network is a deep liquidity network connecting traders, exchanges, institutions, and DeFi platforms. It offers a trading platform called WOO X, providing low trading fees and deep liquidity. The network aggregates liquidity from various sources, ensuring competitive spreads and trading conditions.
WOO Network allows staking of its native WOO tokens for rewards and governance participation. It caters to both retail and institutional clients, offering services like customized liquidity solutions and asset management. The platform integrates with DeFi, supporting functionalities like yield farming and lending.
Biggest Micro-Cap Gainers in the last 30 days
We review and analyze small and micro market cap cryptos every week looking for the next low-cap gem. These are the best-performing (quality) micro-cap projects over the last 30 days:
Best Performing Quality Micro Caps (Last 30 days):
- ELAND +1,378% - Web3 for Real Estate (Nano-Cap)
- SNS +1,059% - Crowdsourcing to Train AI (Micro-Cap)
- D3D +1,004% - Social Network + Earn (Micro-Cap)
- CATHEON +935% - Web3 Gaming Ecosystem (Nano-Cap)
Monthly Altcoin Pick:
In two weeks, we will be releasing our next Altcoin Pick, If you would like access to this and future monthly Altcoin picks, consider becoming a member - It's only the price of a couple of cups of coffee a month.
Altcoin picks are emailed to members as soon as they are published. If you are wondering how we choose our monthly Altcoin Picks - this is the methodology we use.
Our Altcoin Picks for the prior months can be found here.
Thanks and appreciation to all our members!
Until the next report,
Richard.
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