Investing in cryptocurrencies can be a lucrative endeavor. However, it’s important to research the many different types of investment opportunities and find the ones that best suit your needs.
Low-cap cryptocurrencies offer a unique opportunity for investors who are looking to diversify their portfolio. Here is our comparison of xDai (STAKE) vs Armor vs Nord Finance (NORD) vs Idle Finance (IDLE). All four low-caps have high growth potential and could be worth investing in 2022.
The Best Low Cap Crypto Projects of 2021
Here at Token Metrics, we understand that our most valuable asset is you, our audience.
With your help, we have put together a guide to the Top 3 Low Cap Crypto Projects of 2021, as voted upon by you.
So sit back, relax, and enjoy the Moon Awards.
What is a Low Cap CryGetting Started With Low Cap Cryptocurrency Trading
Let us begin by defining what a crypto project is before we talk about low-cap crypto projects.
To understand crypto projects, you must understand cryptocurrencies as well as the technology that underpins them.
As a currency, cryptocurrency uses cryptographic functions and blockchain technology to function as an internet-based medium of exchange.
Today, there are more than 2,000 different crypto projects, ranging from name brands like Bitcoin and Ethereum to meme coins like Dogecoin.
Low-cap cryptocurrencies deserve their own category in the Moon Awards because they are a pillar of the crypto world.
Market capitalization for low-cap crypto projects is typically low because they are in the early stages of development. The total value of the circulating supply of a coin is the market capitalization, and when compared to the market capitalization of significant coins, low-cap coins appear small.
Even though they are in their infancy and have low market caps, people are attracted to these coins because they are likely to produce the most profits.
Crypto projects with a market capitalization of under $100 million qualify for the low-cap category. They have proven to be some of the best investments in crypto.
This list is essentially The Most Underrated Cryptocurrencies of 2021, as voted upon by you.
Low-Cap Crypto Projects: The Best Medium For Quick Gains in 2022
1) Armor (ARMOR)
“Armor provides insurance for Ethereum and DeFi, which is a necessity with the level of risk investors take on when dealing with smart contracts. I feel safer knowing I’m earning yield to secure my crypto assets.” – Ian Balina, Founder and CEO of Token Metrics
The best low-cap crypto project, with almost 40% of the total vote, is Armor. Launched in January of 2021, Armor is a very new project with a market cap just over $60 million, dwarfing even Bitcoin and Ethereum.
This market cycle, Armor has emerged as a crucial solution to the crypto space, in response to the enormous growth in popularity of NFTs and DeFi. The Armor platform is a smart insurance aggregator built on the core ideas of a decentralized financial infrastructure and a trustless system.
In addition, users will soon be able to add custodial and centralized exchange asset coverage to their Armor subscription. Users can insure their assets against smart contract risks on top of popular protocols such as Uniswap, Sushiswap, AAVE, Synthetix, Yearn, and more.
The Armor system tracks the exact amount of funds that move across protocols and works seamlessly with a modern investor’s rapid pace. A streamed payment system allows Armor to bill by the second and minimize costs while maximizing flexibility.
Among the features of Armor are permissionless access, no sign-up requirements, pay-as-you-go coverage, and only paying what you owe coverage, which Nexus Mutual’s blockchain-based insurance alternative offers.
2) Nord Finance (NORD)
“Nord Finance is taking a comprehensive approach to DeFi. It has multiple DeFi products including loans, swaps, savings, and a robo-advisory – all built on a blockchain agnostic platform that can interoperate with multiple blockchains at the protocol level, which will become more and more important as the blockchain space continues to grow.” – Forrest Przbysz, Head of Research, Token Metrics
Second place is taken by the low-cap crypto project Nord Finance with just over 15% of the votes. Founded in January of 2021, Nord Finance defines a low-cap project as having a market capitalization of less than $4 million. This is the type of project featured in this Moon Awards category.
Nord Finance was conceptualized in mid-2020, but it was not launched until 2021 with the listing of NORD tokens. As a result, Nord Finance has achieved tremendous community support, engagement, and interaction over a short period of time.
North Finance’s mission is to be at the forefront of interoperable liquidity mining while serving as a gateway for newcomers to enter the crypto space. As new protocols and upgrades are introduced, more tokens will appear on the Nord Finance platform, offering high yield returns with minimal risk.
Designed for new crypto users, Nord Finance’s platform combines DeFi, yield farming, and investment advisory services.
In addition to Nord Finance’s outstanding partners, one characteristic that distinguishes it from every other low-cap project is its impressive partners. Nord Finance’s partners include Orion, Frontier, and Elrond. As part of this partnership, Nord Finance has partnered with blockchain security firm Zokyo, who recently completed an audit on the Nord Savings smart contract, which found no issues.
Nord Finance’s NORD token is an ERC-20 token that embodies the DeFi values by facilitating on-chain governance. Holders of the NORD token can vote, stake, and use yield farming strategies on various DeFi platforms.
3) xDai (STAKE)
“The xDai chain is a stable payments blockchain designed for fast and inexpensive transactions. It also offers the seamless ability to move tokens between chains using the unique token bridge architecture. xDai also has a rapidly growing ecosystem focused on trending narratives such as Defi, Dao’s, NFT’s, infrastructure, and integrations. The future looks bright!” – Diego Lara, Partner, Token Metrics Ventures
xDai, a low-cap project launched in 2018 through the partnership between PAO Network and MakerDAO, rounds out the list in 3rd place.
The xDai chain acts as a sidechain that integrates POA Network’s interoperability with tDai’s stability. xDai is the world’s first blockchain project where the native token is a stablecoin backed by the US dollar.
As part of the Ethereum ecosystem, the xDai chain works with mobile wallets, hardware wallets, block explorers, and smart contracts. The network is independent and built to support transactions that hold value. Users of xDai can freely transfer stable values without worrying about speculative concerns, volatility, and FUD. DAI moves to a platform that is designed to provide fast, secure, and stable transactions.
Along with its stablecoin, xDai offers the STAKE token. The STAKE token is used by validators and delegations to secure the xDai chain. Users can take part in chain consensus as validators running xDai nodes or as delegations placing stakes on those nodes.
In addition to STAKE, other sidechains can use the STAKE token to secure their own chains, making STAKE the first multi-chain enabled staking token. Users who stake the STAKE token to secure the chain will receive rewards in both STAKE and xDai.
Honorable Mention: Idle Finance (IDLE)
“Idle finance monitoring system allows participants to maximize interest rate returns by detecting the interest rate changes on different lending protocols. Idle Finance is currently a low cap Defi gem but not for long, as more people search for best yields especially in a prolonged downturn in the crypto market.” – Ugo Nduaguba, Partner, Token Metrics Ventures
The low-cap project with a market cap of right around $15 million is more than worthy of an honorable mention after narrowly losing out to xDai.
It is an automated asset allocation and asset aggregation protocol dedicated to the interest-bearing token economy. It was first launched as a beta version in August of 2019.
The IDLE token was not released until the end of 2020, yet it has become an essential part of the Idle ecosystem. The IDLE token powers the DAO that maintains and improves the Idle protocol.
In these pools, you can deposit funds according to the desired crypto and farm the token, giving you the best APRs for the underlying protocols as well as IDLE tokens based on the funds deposited.
Users of protocols with a governance token will receive IDLE tokens along with the corresponding governance token. For example, if the smart contract has moved funds to the Compound pool, users will receive COMP and IDLE tokens as well as the corresponding interest of the asset deposited.
The cryptocurrency market has seen an unprecedented level of volatility in the last few months, but this is set to change. The crypto markets are maturing and projects are diversifying, which will lead to a more stable environment for investors. With that in mind, it’s time to start thinking about investing in low cap cryptocurrencies.
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