The Best Low Cap Crypto Projects of 2021

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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 Crypto Project?

Before we start talking about low-cap crypto projects, let’s begin defining what a crypto project is.

Crypto projects are just another way to describe cryptocurrencies and the technology behind the coins, so to understand one, you must comprehend the other.

The basic concept of cryptocurrency is that it is an internet-based medium of exchange that uses cryptographical functions and blockchain technology to work as a currency.

There are over 2,000 different crypto projects today, and they range from the name brands of Bitcoin and Ethereum to meme coins such as Dogecoin.

Low-cap cryptocurrencies are a crucial pillar in the crypto world deserving of a separate category in the Moon Awards.

Low-cap crypto projects are cryptocurrencies that are in the early stages of development and, as a result, have a low market capitalization. Market capitalization refers to the total value of the circulating supply of the coin, and when compared to the market caps of significant coins, low-cap coins appear minuscule.

People are attracted to these coins, even though they are in early development with low market caps because low-cap coins can result in the highest profits.

 Low-cap crypto projects are the hidden gems of crypto and have allowed many investors to achieve sky-high returns. The only requirement for this low-cap category is that the project must have a market cap under $100 million.

This list is essentially The Most Underrated Cryptocurrencies of 2021, as voted upon by you.

Top 3 Low Cap Crypto Projects of 2021

1) Armor (ARMOR)

Armor Finance

“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

Arriving in 1st as the best low-cap crypto project, with a dominating 40% of the total vote, is Armor. Launched in January of 2021, Armor is a very new project that appears minuscule when compared to Bitcoin and Ethereum, as Armor’s market cap is just over $60 million.

With the massive rise in popularity of NFTs and DeFi this market cycle, Armor has come onto the scene, offering a vital solution to the crypto space. Armor is a smart insurance aggregator for DeFi built on the core ideas of a trustless system and decentralized financial infrastructure.

Armor users can purchase coverage for their assets against smart contract risks across popular protocols like Uniswap, Sushiswap, AAVE, Synthetix, Yearn, and more. Soon, custodial and centralized exchange asset coverage will be made available to users.

Armor works by tracking the exact amount of user funds as they move across various protocols and functions seamlessly with the rapid pace of the modern DeFi investor. Armor also bills by the second using a streamed payment system, which minimizes costs and maximizes flexibility.

The coverage provided by Armor is underwritten by Nexus Mutual’s blockchain-based insurance alternative, with the added features of permissionless access with no sign-up requirements, pay as you go coverage, and only pay what you owe coverage.

Token Metrics’ Analysis of Armor

2) Nord Finance (NORD)

Nord Finance

“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, Senior Investment Analyst, Token Metrics 

Arriving in a distant second place with just over 15% of the total vote is the low-cap crypto project Nord Finance. Launched in January of 2021, Nord Finance defines a low-cap project with a market cap of just under $4 million. It is the type of project this Moon Awards category is designed to showcase.

First conceptualized in mid-2020, Nord Finance has achieved incredible community support, engagement, and interaction within a very short period. Although Nord Finance conceptualized in 2020, the project did not launch until 2021 with the listing of the NORD token.

Nord Finance aims to be at the forefront of interoperable liquidity mining along with continuing to serve as an onboarding ramp for new people to enter the crypto space. The project offers high yield returns with minimal risk on a variety of stablecoin assets. With the introduction of new protocols and upgrades, more tokens will be appearing on the Nord Finance platform.

The Nord Finance platform combines DeFi, yield farming, and investment advisory services all in one package designed for new crypto users.

One fascinating aspect of Nord Finance that makes the project stand out from every other low-cap project is the partners of the project. Partners of Nord Finance include Orion, Frontier, and Elrond. Nord Finance has also partnered with blockchain security firm Zokyo who recently carried out an audit on the Nord Savings smart contract, which was completed and found no issues.

The NORD token is an ERC-20 token that sticks to the DeFi values of Nord Finance by facilitating on-chain governance. NORD holders can participate in voting, staking, and the execution of yield farming strategies on various DeFi platforms.

Token Metrics’ Analysis of Nord Finance

3) xDai (STAKE)

xDai

“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

Rounding out the group of nominees in a strong 3rd place is the low-cap project xDai. Launched in 2018 through a partnership between PAO Network and MakerDAO, xDai has a market cap right around $50 million.

One of the many features that makes xDai unique is that it is the first blockchain project to launch where the native token is a stablecoin tied to the US dollar. xDai chain functions as an Ethereum compatible sidechain that combines POA Network’s interoperability knowledge and technology with MakerDAO’s DAI.

xDai chain functions with all of the tools in the Ethereum ecosystem, including mobile wallets, hardware wallets, blockchain explorers, and smart contracts. The network is independent and built to support transactions that hold value. xDai provides users the ability to transfer stable values free of speculative concerns, volatility, or FUD.

When DAI bridges to xDai, it moves to a platform with the explicit purpose of providing secure and stable transactions on a fast, neutral network.

Outside of its stablecoin, xDai also offers the STAKE token. Validators and delegators use the STAKE token to secure the xDai chain. Users will have the opportunity to participate in chain consensus, either as validators running xDai nodes or delegators placing a stake on those nodes.

Users who place the STAKE token to secure the chain will receive rewards in both STAKE and xDai due to the unique reward mechanics of the network. Additional sidechains can use the STAKE token to secure their own chains, making STAKE the first multi-chained enabled staking token.

Token Metrics’ Analysis of xDai

Honorable Mention: Idle Finance (IDLE)

Idle Finance

“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

After being narrowly edged out by xDai, Idle Finance is more than deserving of an honorable mention as a top low-cap project. Idle Finance currently sits at a market cap of right around $15 million.

Idle Finance is a DeFi protocol that first launched in beta in August of 2019. The Idle Finance protocol is dedicated to bringing automated asset allocation and aggregation to interest-bearing tokens’ economies.

The IDLE token was not launched until late 2020, but it has become a crucial part of the ecosystem. The IDLE token powers the DAO that governs the Idle protocol and is responsible for maintaining and improving the protocol.

The token can be farmed by depositing funds on one of the pools according to the desired crypto and provides plenty of advantages. You benefit from getting the best APR of the underlying protocols and receiving IDLE tokens in proportion to the funds deposited in various pools.

These are not the only benefits, though, as users who use a protocol with its governance token will receive those tokens along with IDLE tokens. For example, if the smart contract has moved funds to the Compound pool, users will receive both COMP and IDLE tokens along with the relative interest of the asset deposited.

Token Metrics’ Analysis of Idle Finance

Top Low Cap Crypto Project Results

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