Microcaps. You hear that’s where the money is. And intuitively, you know it’s easier for a $10 million project to 100x to $1 billion than it is for Bitcoin to 100x from $500 billion to $50 trillion.
But there’s another side to it too. At $10 million, it could easily go to ZERO. With Bitcoin that’s unlikely. So how do you pick? And what do I like in this market range? Stick around and I’ll tell you some great altcoin gems.
Coin 1: COTI
Small caps and Microcaps, whose market values are under $100 million, are some of the toughest coins to figure out. It’s hard to tell where good value is. Many of these are bets on potential. So if we are looking at potential, then we need to put the odds in our favor.
Our first coin today COTI does that exactly. It is without question the biggest hyped project in Cardano with its DJED stablecoin. In fact, just recently we did a whole video only on COTI. But here’s the thing.
COTI's Treasury just received the first batch of Djed operational fees!
A conversion of $ADA to $COTI has just been completed on the open market, and the $COTI has been funneled to the Treasury as a reward to its participants. Max APY is now 118%!
— COTI (@COTInetwork) February 3, 2023
COTI’s market value is small. At 10 cents each, they did just pop over $100 million market value but that could be temporary.
Why I Like COTI?
Until the market decides whether DJED is a success or not, COTI’s fortunes will depend on Cardano. If you are bullish on Cardano, then you are going to be bullish on its stablecoin development. You know every good ecosystem needs one. Plus, projects are trying to move away from USDC and USDT for native, more decentralized solutions.
So what Cardano does helps COTI and what COTI does helps Cardano. A relationship like this is a big risk reducer for a project of this size. Now if that relationship goes south, there’s no question COTI will suffer. But for now, it’s a plus.
Secondly, I like that COTI is an appchain. Appchains are chains built with a specific app or set of apps in mind. This means the tradeoffs they have to make when building are all to benefit building a specific type of app. And COTI is an appchain all about payments.
— COTI (@COTInetwork) February 14, 2023
Payments are one of the few use cases for crypto that’s already successful. We aren’t waiting and hoping it will work out 3 yrs from now. Payments, especially remittances and cross-border transfers, are already a success story for crypto.
It should only grow from here. COTI is in a good position to take advantage of that growth.
Coin 2: Unmarshal
My 2nd coin today is Unmarshal. It is a blockchain infrastructure project. Unmarshal uses APIs to query blockchain data, especially NFT data. Their tools also allow you to build out your own APIs for your project if the available ones don’t fit your needs. And to be even MORE flexible, if a project has a specific need, they can pay Unmarshal to build out those tools for them.
— Unmarshal (@unmarshal) February 1, 2023
It already supports 20 different chains including:
- Avalanche, and more.
Unmarshal knows that more sophisticated apps like DeFi, NFT gaming, and metaverses need to be able to query data easily just like other chains do. This includes queries moving across chains and bridges and multi-app functions. Whale watchers will love the Token Balance and Token Transaction APIs that Unmarshal offers.
Why I Like Unmarshal?
Now when I say microcap, this one is REALLY micro. The $MARSH coin is by far the smallest on this list today. Its current market value is $9.2 million and fully diluted market value is only $24.5 million. Compare that with the leader in this category, The Graph. The Graph, which is in our Master Portfolio, is the #41 project by market value at $1.6 billion. So there is A LOT of room to run for $MARSH.
Could Unmarshal become as big as The Graph? Maybe? Maybe bigger too. The Graph relies on the popular GraphQL query language. And this makes sense because it’s one of the industry standards. But Unmarshal uses GraphQL too. And it also uses APIs, Websockets, and other query methods to offer more options.
🙌 You now have the option to create custom APIs by writing simple SQL queries.
This is a handy feature especially for those unfamiliar with GraphQL.
👇 Learn how to create Dynamic APIshttps://t.co/UGjcTCKAMh
— Unmarshal (@unmarshal) February 17, 2023
The last reason why I like Unmarshal is that everyone at Altcoin Buzz, myself included, loves blockchain infrastructure companies. For the Web3 dream to become reality, we need these companies. And we need more than one winner in many categories including querying blockchain data. There’s room for both The Graph and Unmarshal.
Do you have any Web3 infrastructure investments like this in your portfolio now? If so, what do you like? Let us know in the comments below.
Coin 3: JOE
My 3rd and final coin for today is Trader Joe. It’s native to Avalanche as a DeFi platform. Now, it’s also on Arbitrum. AAVE is by far the largest DeFi protocol on Avalanche. Currently, it holds 35% of all the TVL in Avalanche.
Welcome to Trader Joe, friend 👋
Trader Joe has been trusted by millions of users to date. Trader Joe works hard, to make DeFi easy and accessible for all.
Let’s explore all Trader Joe has to offer 👇 pic.twitter.com/tNEcmdH5Q1
— Trader Joe🔺💙 | Live on Arbitrum 🌊📘 (@traderjoe_xyz) December 27, 2022
But after that Benqi, who gets most of its volume from liquid staking is 2nd and then Trader Joe is 3rd. It’s the biggest native DEX in Avalanche. There’s no particular standout project or coin here like COTI has with DJED. But for a ‘smaller’ DEX like Trader Joe is, they have lots of great farming and pool options including:
- Stablecoin pairs
- Bridged BTC
- Pairs with no risk of Impermanent loss like ETH-wETH and BTC-wBTC
- The option to create your own pool
Why I Like TraderJoe?
What Trader Joe offers for a DEX of its size is great. It looks very undervalued compared to its peers when we look at the ratio of Market Value to TVL. Trader Joe’s is less than 1. They have $103 million in TVL and a market value of $88.4 million. So that’s a ratio of 0.815.
To compare, AAVE is at 3.6. At a 3.6 ratio, Trader Joe would be worth $370 million or more than 4x its current price. Another reason why I like JOE is like with COTI and Cardano, a bet on JOE’s growth is a bet on Avalanche. Yes, Avalanche has other things going on like its subnets and such. But they’ve said many times they want to be a DeFi hub. And if they do, JOE will benefit.
We’re proud to have hit a new all-time-high of over $23m daily volume on Arbitrum, which puts us as a top 3 DEX 💙🧡
Yes, that's right – the capital-efficient DEX is now rubbing shoulders with the very best.
And we’re not stopping anytime soon.
— Trader Joe🔺💙 | Live on Arbitrum 🌊📘 (@traderjoe_xyz) February 18, 2023
Lastly, the $JOE token has great tokenomics. More than 75% of the total supply is already on the market. So their growth is real, not manufactured due to low float in the market.
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