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 2020, 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 what a low-cap crypto project is, 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.
This category of the Moon Awards is very different from our previous segment of Best Crypto Projects of 2020 as low-cap cryptocurrencies are a crucial pillar in the crypto world deserving of a separate category.
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 higher than $50 million.
This list is essentially The Most Underrated Cryptocurrencies of 2020, as voted upon by you.
Top 3 Low Cap Crypto Projects of 2020
1) Matic Network (MATIC):
“Matic Network is a project I’ve been bullish on since they won our Crypto World Tour pitch contest in India back in 2018. I believe they’re very undervalued and are a low-cap gem.” – Ian Balina, Founder and CEO of Token Metrics
Arriving in 1st place as the best low-cap crypto project, with over 37% of the total vote, is Matic Network. Launched in April of 2019, Matic appears to be a minuscule cryptocurrency compared to Bitcoin and Ethereum as Matic’s market cap is just over $75 million.
Despite this relatively small market cap, Matic is still a significant player in the crypto market as its market cap is barely outside the top 100 of all cryptocurrencies. Matic Network also came in 3rd place in our previous Moon Awards category of Best Crypto Projects of 2020.
Matic Network has made a name for itself with promises of delivering a more straightforward interaction between users and decentralized financial applications/ecosystems. Matic’s central focus is on reducing the complexity of these actions and describes itself as a Layer 2 scaling solution.
By being a self-described Layer 2 scaling solution, Matic does not seek to upgrade the existing blockchain layer, which would add further complexity.
To deliver on these promises, Matic Network implements a customized iteration of the Plasma framework that allows for smoother execution of scalable smart contracts. Matic also utilizes a decentralized network of Proof-Of-Stake validators and sidechains for off-chain computation.
Matic does share a few similarities with Ethereum as, like Ethereum, it aims to be the de-facto platform for developers to deploy and securely run decentralized applications. These similarities result in one of the critical features of the Matic Network.
The architecture of the Matic Network is fully compatible with the Ethereum ecosystem. This compatibility means that any Ethereum application can transfer to Matic’s network with almost no significant changes.
Another similarity to Ethereum is that the Matic token has two primary uses. The first is its use as a currency to pay for the transaction fees within the network. The second is for staking.
Staking is the process of holding funds in a cryptocurrency wallet to support operations of the system. Essentially, it is a way of being rewarded for participating in the network, much like interest on a savings account at a traditional bank.
2) Zilliqa (ZIL):
“Zilliqa is a blockchain that focuses on developing enterprise-grade decentralized applications. They claim to have solved scalability through their sharding mechanism. The project has the potential to become a top contender within this ecosystem as long as it can become interoperable with other blockchains. Zilliqa is at a crucial time to obtain market share or slowly close its doors.” – Diego Lara, Token Metrics Advisor
Coming in 2nd place is the low-cap crypto project Zilliqa. Launched in 2017, Zilliqa (short for Smart Contract Intermediate-Level Language) has carved out a nice niche for itself in the crypto market and has a current market cap of $188.2 million.
Zilliqa intends to enhance the scalability of cryptocurrency networks like Ethereum through the concept of sharding. Sharding is a crucial and unique concept for Zilliqa, as it serves as the pillar for many of its core functions.
Sharding is where transactions are divided into smaller groups so that miners can perform parallel verification of the trades. As a result, Zilliqa can verify transactions much more quickly and increases the number of transactions in a certain period.
According to Zilliqa’s whitepaper, transaction speeds can scale to approximately 1000x that of Ethereum’s network. This high transaction speed allows developers to focus on fleshing out their ideas rather than worrying about network congestion.
Zilliqa has also integrated with the increasingly popular crypto project, Chainlink. With this integration, Zilliqa uses decentralized oracles powered by Chainlink to import data outside the blockchain environment.
3) Blockstack (STX):
“About a year ago, I did a video review on Blockstack. It scored very well for both its fundamentals and technology. They have been around since 2013 with a mission to realize a full-stack for decentralized computing. They aim to replace the reliance on centralized cloud service providers. With a market cap of only $100 million, there is a lot of upside potential.” – Sam Monac, Head of Research, Token Metrics
Rounding out the group of nominees in a close 3rd place is the low-cap crypto project, Blockstack. Founded in 2013 by Princeton computer scientists Ryan Shea and Muneeb Ali, Blockstack underwent four years of rigorous development before launching the alpha in early 2017.
Blockstack is a decentralized computing platform that focuses on putting users in control of their identity and data. They hope to achieve this by allowing users to choose which data they share and with whom they share it.
Through Blockstack’s design, application developers can not access user data, users can choose who stores their data, and the user decides permission rights for reading or writing the data.
With the project, Blockstack is attempting to achieve a full-stack for decentralized computing. Blockstack aims to accomplish this by focusing on enabling secure, private applications where the blockchain layer handles minimal state and logic.
With these features, Blockstack users can use a single account across services and applications, removing the continuous need to create new accounts for new functions.
One interesting note on Blockstack is that the Blockstack token was the first SEC qualified token sale in crypto history.
Honorable Mention: Holochain (HOT):
“Looking at the HOLO chart, it looks like non-believers have been selling. It looks like take the money and get out is at the forefront of people’s minds. Sometimes moon shots happen in alts when bears run out of ammo, leaving bulls unchecked. HOLO is making patters seen in other alts that have rallied sharply. Time will tell, but all it takes is one piece of good news…” – William Noble, Chief Investment Officer, Token Metrics
After being narrowly edged out by Blockstack, Holochain is more than deserving of an honorable mention as a top low-cap crypto project. Holochain currently sits at a market of $129.7 million.
Launched in 2018 by the minds behind the MetaCurrency Project, Arthur Brock and Eric Harris-Braun, Holochain has captured the eye of many crypto investors. In fact, Holochain has been one of the best performing ICOs of 2018.
Holochain is a decentralized cloud computing application that uses peer-to-peer networks for processing agreements and consensus mechanisms. This function allows users to host and use decentralized applications (dApps) on their private computers and set their hosting prices and priorities for their hosting services.
The unique thing about Holochain, though, is that no true global consensus is maintained. Instead, each agent in the public blockchain keeps a private fork that is managed and stored in a limited way on the public blockchain.
This unique feature allows every device on the Holochain network to function independently and only requires synchronizing data when necessary or agreed upon by users. This ability translates to higher scalability for dApps hosted on Holochain.
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