Since 2010, when Bitcoin began trading, it has led other assets in the space to a new era. Many investors globally now see and desire these digital assets as investment tools. After Bitcoin, the creation of other cryptocurrencies continued to expand the rapidly growing market. However, the market is so big today that investors can now classify the assets by many factors. Factors like trading volumes and market capitalization can tell a potential investor something about an asset. With more than 3,000 assets in the market, investors will need a metric like market capitalization to understand these assets. With the crypto market undergoing volatility, this article focuses on the top 5 small cap crypto that traders can purchase in April 2022 and realize decent gains. You’ll notice from the charts that they all reached their respective support areas, which is even better when buying any type of asset.
What Is Market Capitalization?
Market capitalization is a metric that measures and tracks the popularity and value of a cryptocurrency. In simple terms, market capitalization mostly tells the story of the distribution and demand of crypto assets. It also measures the dominance of the assets and can convince potential investors to commit funds to it. To calculate market capitalization, one will multiply the asset’s current price by the total number of tokens in circulation. This is how popular crypto analytics website like CoinMarketCap calculates it.
As it is called, the market cap is categorized into three: Large-cap, mid-cap, and small-cap. Large-cap assets are cryptos with a market cap of more than $10 billion. According to investors, they are less volatile and safe investments. On the other hand, mid-cap are assets with a market cap of less than $10 billion but far above $1 billion. They are neither low-risk nor high-risk assets. Lastly, small-cap cryptocurrencies are assets with a market cap of less than $1 billion. These assets are high risk, and investors are wary about them. However, in this article, we will be focusing on small-cap cryptocurrencies and what you need to know about them.
What Are Small Cap Cryptocurrencies?
Small-cap cryptocurrencies are usually highly volatile assets deemed by investors as high-risk investments. This is because they might be new or have the potentials to crash in a short time. Fortunately, they also have a high potential of growing massively, yielding investors huge returns. The assets under this category consist primarily of cryptos that are yet to prove their strength in the market.
They are assets that have not realized their potential yet, with much room for growth. They are also assets that cater to lower audiences and might be easy to swing their market value. These assets might appeal to investors who are high-risk takers, willing to commit funds and make quick returns. A little buying and selling activity for assets in this class can quickly move prices. These high-risk investors can sell immediately they sense profits or hold for potential long-term profits. Unfortunately, assets in this category class do not appeal to many investors, as they have high potentials to run into losses.
Why Should I Invest in a Small Cap Crypto?
Since small-cap cryptocurrencies have low prices and are primarily new, they have high growth potential. Every cryptocurrency has the potential to grow like Bitcoin, whose value plummeted from less than $1 to about $47k today. Bitcoin is not the only asset in this category, as cryptocurrencies like Ethereum, Solana, XRP, also worked their way up. Investors understand this, so they don’t ignore these assets class. Alternatively, investing in small-cap crypto can also put you in a position to determine its future and growth. This is because your little trading activity could impact its prices.
Limitation of Small Cap Crypto
Small-cap cryptocurrencies are usually far from the top and closer to the bottom barrel. This means they can easily crash and have a high potential to run investors into losses. One wrong decision from its development team, the platform is gone with investors’ funds. They are also hard to market and commit to, as most investors prefer mid or large-cap assets. This is why their growth process is always slow, and they can penultimately collapse in the long run. Alternatively, they are assets considered to be very volatile with unstable prices.
Top 5 Small Cap Crypto To Invest in April 2022
According to CoinMaketCap, Angel Protocol (HALO), Prometheus (PRO), and Peak Finance (PEAK) are the three lowest cap cryptocurrencies right now. However, listed below are the top five small cryptos in April 2022.
#5 Aavegotchi (GHST)
Aavegotchi (GHST) is a DeFi non-fungible token (NFT) currently running on the Aave Blockchain. The Aavegotchis are game avatars that its holders use as DeFi collaterals to earn staking rewards. Unfortunately, owners can liquidate it anytime and lose their Gotchi. Unlike other NFTs, Aavegotchis have unique advantages, which makes their value surpasses the gaming prospects. To interact with a Gotchi, DeFi users need to stake either aLINK, aUSDC, or other aTokens. The protocol’s native and governance currency is GHST. It is available for sale and pairing on major exchanges like Binance, OKEx, MXC, Bilaxy, and Uniswap.
Its circulating supply is 60,961,129 tokens and has an infinite maximum supply. With a market cap of $121,326,515.75, it is one of the best low cap tokens in the market. The token’s 24hour trading volume is now around $11,161,443.79. It is still far from its ATH of $3.25, as it currently trades for $1.93 at today’s prices. WalletInvestor is optimistic about the token and sees it hitting $3.154 this year. PricePrediction is also bullish about its future, as they believe the token will hit $2.89 by the end of the year. DigitalCoin also thinks along with both predictors, as it feels GHST will hit $2.83 before December 2022.
#4 Pirate Chain (ARRR)
Pirate Chain (ARRR) is a unique private send cryptocurrency. The project utilizes advanced privacy protocol, bespoke to users, and cannot be interfered with by others. It also uses the Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (ZK-SNARK) technology for privacy. This is why 100% of peer-to-peer transactions on the Blockchain are anonymous and private. The protocol’s native and governance token is ARRR. It is available for sale and pairing on crypto exchanges like KuCoin, Gate.io, FMFW.io, Changelly PRO, and CITEX.
Its circulating supply is 191,559,315 tokens and a maximum supply of 200,000,000 coins. With a market cap of $352,976,949.07, it remains a top low cap token in the market. It is very far from its ATH of $16.9, and it currently trades for $1.76 at today’s prices. However, according to predictions, the token may not get closer to its ATH anytime soon. WalletInvestor is optimistic about the token and sees it hitting $1.827 this year. PricePrediction is also bullish about its future, as it believes the token will hit $2.06 by the end of the year.
#3 MAPLE (MPL)
Maple is a decentralized corporate credit market currently catering to borrowers looking for transparent and efficient financing. The platform offers these borrowers transparent and efficient financing, completed entirely on-chain. Maple also caters to liquidity providers by offering them a sustainable yield source through lending their assets. The protocol’s native and governance token denotes as MPL. Owning this token enables one to participate in Maple’s governance and share in its revenues. It is available for sale and pairing on crypto exchanges like Coinbase, Huobi Global, Gate.io, Hoo, and BingX.
Its circulating supply is 4,417,986 tokens and a maximum supply of 10,000,000 coins. With a market cap of $630,353,718.83, it is one of the highly-rated low cap tokens in the market. It has recently fallen from its ATH price of $68.32 attained this month and trades for $62.82 at today’s prices. However, according to crypto analysts, the token’s performance in 2022 will be remarkable as expectations are high. WalletInvestor is optimistic and bullish about the token and sees it hitting $85 this year. DigitalCoin also echoes the thought of WallteInvestor, as they see MPL worth $88 in 2022. PricePredictions is also bullish about its long-term future, as they see it hitting $164 in 2028.
#2 Ichi (ICHI)
Ichi allows crypto communities to mint stablecoins by backing every created token with a dollar in value. This way, users can easily create social tokens immune to volatility. Also, its community has enabled many other crypto communities to govern their in-house stablecoin. The ichi.org platform’s native and governance token is ICHI. It is available for sale and pairing on BKEX, SushiSwap, Bancor Network, and 1inch Liquidity Protocol. Its circulating supply is 4,586,160 tokens and no maximum supply. It has a market cap of $45,159,884.41 amidst a collapsing performance in the last week.
The token hit an ATH of $145.7 earlier this month, and it has fallen mightly, losing 90% in value. Unfortunately, this performance is not new to the DeFi space, as crypto analysts predict a rebound. ICHI is an attractive project, and crypto analysts believe it won’t go down without a fight. Despite the bullish run this week, WalletInvestor believes the token will hit $21.3 by the end of the year. PricePrediction is also optimistic about its future, as they believe the token will hit $27.27 by December 2022. However, the next few months will be crucial for the token, as expectations remain positive and high.
#1 Siacoin (SC)
Officially launched in 2015, Sia is a blockchain platform that aims to be the backbone storage layer of the internet. It is a secure, trustless, distributed, and decentralized cloud storage platform. Currently providing affordable storage solutions, it also aims to compete with Microsoft, Google, and Amazon, in the future. The protocol’s native and governance token is Siacoin, denoted as SC. Siacoin holders can participate in the network’s governance and use it to pay for its services. It is available for sale and pairing on crypto exchanges like Coinbase, Binance, and Kraken.
Its circulating supply is 50,691,172,992 tokens and a no maximum supply. With a market cap of $$536,241,698.16, it is a promising small-cap token. There is optimism around this token’s future due to its attractiveness and high demand. Crypto analysts expect its performance this year to be nothing short of remarkable. WalletInvestor is optimistic and bullish about the token and sees it going from $0.01061 to $0.0185 this year. DigitalCoin and PricePredictions are also bullish about it, as they believe it will be profitable for investors this year.
Conclusion
Market capitalization is a metric that measures and tracks the popularity and value of a cryptocurrency. In simple terms, it measures the dominance of an asset and can convince potential investors to commit funds to the assets. As it is fondly called, the market cap is divided into three categories: large cap, mid cap and small cap. small cap tokens are usually highly volatile assets deemed by investors as high-risk investments. Siacoin, ICHI, GHST, ARRR, and MPL, are five of the best low cap tokens crypto analyst are optimistic about in 2022.
