Market capitalization is typically used to rank cryptos – a higher market cap means more people are invested in it. Thus, the coin is perceived to be more reliable. On the other hand, tokens with a low market cap can be viewed as speculative and unreliable. Unfortunately, this assumption about low cap tokens does apply in many cases.
However, small-cap tokens also offer a benefit – they have strong potential for short-term growth. And for select decentralized finance (DeFi) tokens like Uniglo (GLO), Spookyswap (BOO), and Aave (AAVE), a small market cap does not prevent them from achieving significant long-term gains.
Uniglo is a new DeFi project set for market launch on October 18. This project is gaining the attention of DeFi analysts because it offers a unique Ultra-Burn Mechanism and a Community Asset Vault.
The Uniglo project aims to get the best of both worlds. It wants to keep its token supply low, but at the same time, it aims to offer sustainable wealth for token holders. It will mint 218.75 million GLO tokens, of which only 80% will be offered to the public. The rest will be allocated to liquidity pools, development, marketing, and the Uniglo Foundation.
The GLO token is already on its first presale. Any unsold tokens during its presale phases and launch will be burned, ensuring that scarcity is embedded in the token supply from the start. The project’s tokenomics model thus rewards early investors and long-time token holders.
SpookySwap is a community-serving DeFi hub and exchange platform for traders. This platform facilitates staking and supports liquidity pools and a yield farm pool. Recently, SpookySwap and DeFi platform Single Finance (SINGLE) also announced their partnership. Investors can now stake their BOO tokens to earn SINGLE. Moreover, the USDC-SINGLE farm has gone live on SpookySwap.
The SpookySwap project has a market capitalization of $29.31 million. This amount is relatively small, but the platform remains the largest decentralized exchange on the Fantom blockchain by total value locked (TVL).
Aave is a very popular cryptocurrency lending platform. With a strong user level, the price of its AAVE token has been performing better than most other tokens. Over the previous week, the price of AAVE increased 46.4%. The platform also recently announced its plans to launch its very own stablecoin, which will help attract and retain users.
The market capitalization of Aave stands at $1.324 billion. Though the market cap appears bigger than Uniglo and Spookyswap, AAVE has a relatively small supply. Currently, the platform has less than 14 million AAVE coins circulating on the market, and its maximum coin supply is also 16 million only. As the platform’s value grows, the few token holders of AAVE reap huge benefits.
Today, investors in crypto are smart enough to know that wealth can be best achieved by mixing up their bets. Putting their money purely in large-cap tokens is not enough, and betting on select small-cap crypto gems sets their portfolios apart from the rest.
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