How to find your next small-cap gem?
“Pocket gems” are the holy grail of the cryptocurrency world and are highly sought after due to their enormous growth potential.
Small-cap gems are cryptocurrencies that have relatively small market capitalizations but are considered to have enormous potential for growth and investment returns.
Consider that Dogecoin was trading at $0.002 and then four months later hit an all-time high of $0.33 (a 16,400% increase).
It is generally the preparatory stage of the market where we see the most growth in the cryptocurrency market, with small-cap stocks often receiving the highest valuations.
Over the coming months, we expect the market to enter a staging phase, with the biggest catalyst for this being the approval of the Spot Bitcoin ETF, expected to occur in early 2024.
In anticipation of these market changes, we thought now would be a good time to cover how to find the next small-cap gem.
Search popular cryptocurrency categories
In my experience, when looking for your next small-cap gem, it’s best to start by looking for very well-performing sectors within the cryptocurrency market. CoinMarketCap has a category page that shows popular categories within the cryptocurrency space that provides a great place to start.
The biggest trending category right now is BRC-20.
What is the BRC-20 Protocol?
Launched in March of this year, BRC-20 (Bitcoin Request for Comment 20) is named after the Ethereum ERC-20 protocol (Ethereum Request for Comment 20) and is basically Bitcoin on Ethereum ERC-20 (excluding smart contracts). This is the version. Use of ordinal inscriptions.
What is an ordinal inscription?
Ordinal numbers engrave serial numbers on ‘Satoshi’, the minimum monetary unit of Bitcoin. This serial number, along with ordinal data, is inserted into a part of a Bitcoin transaction called the witness signature field so that the data can be linked to a single satoshi.
An easy way to think of this is Bitcoin’s ordinal = NFT.
Just as we saw the NFT craze in 2020-2021, “animal name” ordinal numbers may be just the beginning of the Ordinal craze, which is already seeing record-breaking growth.
Of course, there are also well-known meme coins that contain ordinal numbers…
As we’ve already seen with NFTs, Meme Coins, and Ordinals, there will always be some weeds to weed out when searching for your next little gem.
However, there are some solid projects in ordinal space.
One project worth looking into is Multibit (MUBI).
Ordinals – The next big thing in cryptocurrency?
Ordinal is just one of many sectors within the cryptocurrency space that have the potential to perform very well, especially in the run-up to 2024. The key is to get into the market before FOMO sets in. If you’d like to see what we’re buying now, please consider becoming a member.
Join us – as we build up.
Although prices are still relatively low, now is a great time to enter the market. If you want to know what we’re buying, join us as we share our monthly Altcoin recommendations in anticipation of the upcoming bull market. All you have to do is become a member.
Richard.
Top 100 popular altcoins:
Cryptocurrency markets are full of green this week too.
Today’s Crypto Fear and Greed Index:
today’s Cryptocurrency Fear and Greed Index = avarice –> Reduced to 70 (from 73).
Bitcoin and Ethereum price changes
bitcoin Diminish 4.89% Here are the prices it is currently trading at last week: $42,147. Over the past 90 days, Bitcoin has increased by: 58.4%.
Ethereum Diminish 5.4% Here are the prices it is currently trading at last week: $2,234. Over the past 90 days, Ethereum has increased by: 36.3%.
Global cryptocurrency market capitalization It decreased to $1.59T (from $1.64T last week).
Top 100 Gainers – Last 7 Days
The biggest gainers over the past 7 days (in the top 100) are:
BONK +99% – 50th
Bonk has been in the top 100 for two weeks in a row. Bonk (BONK) is a dog-themed meme coin on the Solana blockchain launched in December 2022. We aim to support Solana-based decentralized exchanges and strengthen SOL token adoption. 50% of the total BONK supply was airdropped to the Solana community. It uses Solana’s efficient consensus mechanism and plans for extensive dApp integration. As of early 2023, BONK has significant circulation, its user base and market capitalization have grown significantly, and its development team has remained anonymous.
OSMO +75% – 84th
Osmosis (OSMO) is a notable cryptocurrency that serves as the native token of the Osmosis decentralized exchange (DEX), which operates within the innovative Cosmos ecosystem. This DEX features the Automated Market Maker (AMM) protocol, which allows users to trade cryptocurrencies without relying on a central intermediary. As a core part of the Cosmos network, Osmosis benefits from the ecosystem’s interoperability and scalability capabilities. Cosmos’ Inter-Blockchain Communication (IBC) protocol is an outstanding feature that enables seamless asset transfer and communication between various blockchains.
Helium (HNT) +67% – 55th
For the second week in a row, Helium has made this list. Helium (HNT) is a cryptocurrency that serves as the native token of the Helium Network, which focuses on building a decentralized wireless infrastructure. The Helium Network operates in a unique way. Burn-and-Mint equilibrium model, utilizes multiple tokens. The main function of HNT is to burn to generate data credits that are used to transmit device data over the network. These data credits have a fixed USD value and are the only payments accepted for data transfer on the Helium network.
WOO Network (WOO) +65% – 80th
The WOO Network is a deep liquidity network connecting traders, exchanges, institutions, and DeFi platforms. It offers a trading platform called WOO X, which offers low trading fees and deep liquidity. The network aggregates liquidity from a variety of sources to ensure competitive spreads and trading conditions.
The WOO Network allows staking native WOO tokens for rewards and governance participation. It provides services such as customized liquidity solutions and asset management to both retail and institutional clients. The platform integrates with DeFi to support features such as yield farming and lending.
Biggest microcap gain in the last 30 days
We review and analyze small and micro market cap cryptocurrencies every week to find the next low-cap gem. The best performing (quality) microcap projects over the last 30 days are:
Top performing quality microcaps (last 30 days):
Monthly altcoin selection:
In two weeks we will be releasing our next Altcoin recommendation. To access this and future monthly Altcoin recommendations, please consider becoming a member. That’s the price of two cups of coffee a month.
Altcoin recommendations are emailed to members as soon as they are posted. Wondering how we choose our monthly Altcoin recommendations? This is the method we use.
Altcoin recommendations from previous months can be found here.
We express our gratitude and respect to all members!
Until next report,
Richard.