Cryptocurrency prices have been steadily gaining public attention in recent years as the market continues to mature. With the rise of blockchain technology, more people are getting involved in cryptocurrency trading as it is seen to be highly profitable. In the face of this growing interest in the crypto market, the performance of small caps and mid caps has been of particular focus lately.
Recently, the prices of small cap and mid cap cryptocurrency tokens have been on an uptrend. Small cap tokens usually refer to crypto tokens with a market capitalization of less than $200 million USD. On the other hand, mid caps usually refer to tokens with a market capitalization of $200 million USD to $2 billion USD. Since the beginning of this year, small caps have had larger gains than mid caps due to greater volatility and a greater influx of investors.
This surge in prices has been mostly attributed to the increasing demand for such tokens. As more people adopt cryptocurrency trading, smaller networks become popular as they offer plenty of opportunities to acquire coins at lower prices. Moreover, the increasing interest in DeFi tokens has also caused many smaller coins to become more attractive to investors.
It is worth noting, though, that small cap and mid cap coins can be more volatile and riskier than large cap coins. This is because the market capitalization of these tokens is much smaller and prone to manipulation. Moreover, a large number of these coins have not been tested adequately or gone through the same rigorous standards that larger cap coins have gone through. Therefore, caution is advised when investing in them.
Overall, the performance of small and mid cap coins has been quite impressive throughout this year. Although it is not immune to volatility, this sector of the market could prove to be a viable investment option in the long run. It has the potential to generate higher returns than mainstream cryptocurrencies, provided that investors invest with due caution.
