Cryptocurrencies have been making headlines in recent weeks, and it seems the trend is here to stay. While the attention has been focused on the major coins, like Bitcoin and Ethereum, there is another market that is beginning to gain attention: the small cap cryptocurrency market.
It’s no secret that the overall cryptocurrency market has been in a bearish trend since the start of this year. Some coins have certainly held up better than others in this environment, with Bitcoin (BTC), for instance, currently hovering around its 2019 high.
However, the story is far different in the small cap market. Small cap coins, which typically have market capitalizations between $10 million and $200 million, are now in an uptrend, with many delivering large gains in the past few weeks.
One example of this can be seen in Skycoin (SKY), which has delivered impressive returns of more than 68% in the past month and currently sits at $0.32. Other coins that have seen strong returns in that same period include Nexus (NXS) and Vechain (VET), both of which are up by more than 50%.
These returns are being driven by strong demand from both retail and institutional investors and are further cementing the small cap market’s place as an exciting investment option. However, investors should be aware of the risks associated with investing in this market, as small caps can be more volatile and riskier than their larger counterparts.
In conclusion, the cryptocurrency market remains in a bearish trend, but the small cap market is now in an uptrend. This has been driven by strong demand from both retail and institutional investors and has resulted in impressive returns for several small cap coins. While this market has potential for investors looking to diversify their portfolios, investors should always be aware of the risks involved.