With more than 1,600 altcoins in circulation, finding the appropriate balance between risk and reward isn’t always easy. Making matters more challenging is the fact that hundreds of projects have already been labelled duds by researchers who have tracked the life cycle of digital currencies beyond their initial coin offering.
While many investors are perfectly content sticking with bitcoin, Ethereum and a couple of others, those of us in search of the next ‘diamond in the rough’ must venture beyond the ten largest cryptocurrenices by market capitalization.
Below, we look at five low market cap altcoins with significant upside potential. It’s difficult to say whether these coins will generate 100 times ROI or anything that mirrors the rapid rise of bitcoin and Ethereum. However, the project specifications suggest they are a good place to start.
The DragonChain project emerged out of Disney in 2016 and was later developed as an open source platform. In its modern form, DragonChain is a business platform that allows for the creation of a secure and scalable blockchain. Part incubator, part marketplace, DragonChain provides smart contract infrastructure with a focus on security, development and scalability.
DRGN, the currency powering the DragonChain platform, has a total market capitalization of $185 million and a price-per-coin of less than $0.80. When measured in terms of market cap, DRGN is a top-100 cryptocurrency project. Given its potential to transform small business adoption of blockchain technology, DRGN may be considered undervalued due to its limited exchange listings. The coin has yet to make its way onto the major exchanges but can still be found on platforms such as Kucoin, IDEX and EtherDelta.
Those of us familiar with ICON know there is huge potential in connected networks. The Ark platform is a smaller-cap alternative that connects every single cryptocurrency through a “virtual spider web of endless use cases.”
Ark employs a Delegated Proof-of-Stake (DPoS) consensus protocol that promotes decentralization and universally accessible programming language in support of wider adoption. Ark falls within the broader category of platform coins, which means it is best served as a buy-and-hold strategy.
ARK token is currently ranked 62nd in terms of market cap with a price per coin of less than $3. Its primary markets include Binance, Bittrex and Upbit.
The next cryptocurrency on our list is ranked all the way down at 153rd in terms of market cap. Vertcoin captured our attention for its outstanding development team, transparency and ASIC-resistant standard (the latter makes VTC one of the most decentralized cryptocurrencies on the market). Proponents of decentralization will therefore find plenty of upside with this coin.
Interestingly, Vertcoin is also one of the oldest cryptos on the market. Founded in 2014 as an alternative to bitcoin and Litecoin, VTC aims to become the utility coin of the future. The project is on the forefront of Lightning Network development and was even mentioned in Litecoin’s whitepaper as a candidate for cross-chain atomic swaps.
At the time of writing, VTC token is valued at over $2. It has not been immune from the recent market downturn but its long-term prospectus is as solid as they come.
Power Ledger (POWR)
The POWR token is also ranked outside the top-100 in terms of market cap, putting it alongside some of the more obscure cryptocurrencies. However, the platform’s value proposition is as tangible as it gets.
Power Ledger is headed by Jemma Green, who recently became the major of Perth, Australia. The platform allows consumers to trade electricity with one another in exchange for real-time payments facilitated through the blockchain. The company calls itself the “peer-to-peer marketplace for renewable energy” because it allows consumers to select clean energy sources and receive more money for excess power using low-cost settlement technology.
PWR experienced explosive growth during the height of the bull market. Tokens are currently valued at around $0.40.
Deepbrain Chain (DPC)
Hacked reviewed Deepbrain Chain during the ICO stage back in December. Though the results were underwhelming at the time, much of the concern stemmed from KYC implementation issues and unusual token metrics.
Valued at less than $1 a coin, Deepbrain Chain can be considered a bargain for its role in using artificial intelligence (AI) to lower the cost of computing. Deepbrain Chain is operating in one of the fastest-growing markets (AI), which partly explains its undervalued status. As the company rightly explains in its whitepaper, 5,000 AI startups came into existence between 2012 and 2016, collectively raising over $22 billion. However, unlike those companies, DPC has already established a firm partnership with Neo and is widely considered one of the leading AI projects in the blockchain space.
Deepbrain Chain has a total value of $139 million, placing it in 113th spot by market cap.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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