• Investors may be moving funds out of larger cap coins such as Cardano and Solana and into smaller cap coins with a market cap lower than $300 million.
• These smaller cap coins have seen a significant uptick in their address activities, particularly from the last week when larger cap coins hit new local peaks.
• The small cap coins mentioned in the report are TRADE, RBN, SLP, PLSPAD, POND, MITX, MTH, and CBG.
As the crypto market rally continues, investors are taking advantage of possible price movements in smaller altcoins by cycling out money from larger cap assets. On-chain data aggregation website Santiment has observed that funds are being moved from coins like Cardano and Solana to smaller cap coins with a market cap lower than $300 million.
These smaller cap coins have witnessed a notable amount of address activity, particularly from the last week when larger cap coins hit new local peaks. The tokens in question include TRADE, RBN, SLP, PLSPAD, POND, MITX, MTH, and CBG. These are coins that are flying under the radar, and are not as widely known or discussed as some of the larger cap coins.
The cycling of funds from large cap assets to small cap altcoins could be seen as a positive sign for the crypto market. It indicates that investors are taking a calculated risk in order to capitalize on possible price movements in small cap coins. This also shows that investors are confident in the crypto sector, as they are willing to take the risk of investing in smaller, less established coins.
The move to small cap coins may also indicate that investors are looking to diversify their portfolios. By investing in smaller coins, investors can benefit from the potential growth of these coins, while still not having to commit too much of their capital. This is a strategy that has been seen in the traditional markets, and it appears to be gaining traction in the crypto markets as well.
Overall, the move to small cap coins is a positive sign for the crypto market. It shows that investors are confident in the sector, and are willing to take calculated risks in order to benefit from possible price movements. It also shows that investors are looking for ways to diversify their portfolios, which should help to increase the stability of the market.