- 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 relatively low correlation with Bitcoin, this could help reduce risk.