Small Cap Altcoins in Green in Pre-Spring Crypto Surge
Crypto is characterized by its highly volatile nature and while the digital assets in this space have lived up to this reputation, investors remain undaunted. It continues to be one of the fastest growing financial markets in the world with forecasts of accelerated growth in the coming years. Recently, the space has slowed down significantly and as such the asset value has fallen.
Despite this, not all digital assets in the crypto space have suffered. Just as there are times where there is an exception to the rule, Small Cap altcoins have proven to be the exception this time. While the rest of the market is in losses, these Small Cap coins are the only index to have stayed in the green.
Small Cap Coins Take the Cake
Recently, when the market collapsed, an unlikely winner emerged from all the squabbles. The Small Cap Index is filled with altcoins whose market capitalization is still very small compared to their larger counterparts. However, this hasn’t stopped them from performing better in times when no one expected them. The past two weeks have been proof of that.
Related literature | Bitcoin Breaks the $39K Idle Trend, But What Does $40K Hold?
While large-cap coins took heavy losses, small-cap altcoins recovered. This was mainly due to the gains of a single altcoin, WAVES, which has made 56% gains in the past two weeks alone. The gains from this digital asset propelled the rest of the Small Cap Index, making gains while the rest of the market suffered losses.
However, the Bitcoin index outperformed the rest of the larger digital assets. While it took losses, it saw 8% of losses in the same time frame, the lowest of these Large Cap coins.
Total Market Cap at $1.75 Trillion | Source: Crypto Total Market Capitalization on TradingView.com
The Large Cap Index had also tracked bitcoin’s downward trend patterns. This index has seen a 9% decline in value over the past two weeks, with the second highest negative return of any index.
Related literature | Bitcoin Worth $1.2 Billion Links Coinbase In Sign Of Continued Institutional Adoption
As for the Mid Cap Index, it took the crown for the index with the worst performance. In the first two weeks of March alone, it saw a 13% loss.
The Small Cap Index outperforming the large cap indices during a downtrend is as unusual as it gets. While it has happened, it has been few enough that it is an incredible achievement for the index to make a profit while the larger indices fall into a loss.
Featured image from Republic World, chart from TradingView.com