Small-cap cryptos have been doing very well in June so far. However, this performance is not broad-based in the crypto space. Most cryptos doing very well right now are memecoins, whereas most utility cryptos and big-cap projects have started to stabilize after declining.
As such, it’s prime time to stockpile some promising small-cap cryptos at their trough before the reversal. The crypto market could wake up in the coming months as the halving starts to impact Bitcoin’s (BTC-USD) supply more and more, and this could have a spillover effect into many small-cap cryptos like earlier this year.
Here are three to research.
Tectum (TET-USD)
Tectum (TET-USD) is one of the fastest layer-1 blockchain startup projects. This crypto saw a huge spike in January, but interest here has been dwindling, with TET down 71% from its all-time high. That said, Tectum has been bottoming out recently, and with selling pressure starting to fade away, it can bottom out and deliver multibagger gains if it starts to challenge its highs in the coming months.
Tectum is the only blockchain using the proof-of-utility consensus, an alternative to the energy-intensive proof-of-work model. Decentralized ledgers use consensus protocols to allow the distributed network to agree on the order of ledger updates. Basically, a node’s voting influence is determined by its historical contribution to the network infrastructure. As such, the project’s developers claim it is more “secure.”
Regardless, the speeds here are very fast. Tectum is the fastest third-generation layer-1 blockchain around. The chain can handle 3.5 million TPS.
Beldex (BDX-USD)
I think Beldex (BDX-USD) is another crypto project that could be on the cusp of bottoming out right now. It has a history of making a significant comeback from the resistance level it is at right now. As long as the broader market cooperates, BDX could deliver multibagger returns from here.
Beldex is a privacy-based ecosystem of decentralized applications (dapps). The native token BDX is one of the toughest privacy cryptos to track. It uses a modified version of Monero’s (XMR-USD) proven Cryptonote protocol with over 2000 validators. As such, it has received much institutional attention over the past year due to privacy coins becoming more popular. Beldex secured a $25 million investment in early 2023 from Web 3.0 backer DWF Labs to expand its privacy R&D and marketing. This team also raised $3 million each from Block Alpha and Alpha Token Capital to advance features like EVM integration and private dApps.
The Beldex ecosystem supports dApps, including BChat, a private messenger, BelNet, a private peer-to-peer VPN and the Beldex Browser. A project with a market cap of $220 million has plenty of upside.
Alephium (ALPH-USD)
Alephium (ALPH-USD) has been having a tough time, much like most small-cap cryptos in the current environment. However, a reversal is possible in the near term. The project has a market cap of just $160 million, and there’s a good chance of multibagger returns here if the hype around scalability cryptos re-awakens. If we see another rally and many chains become clogged with high transaction fees, I believe there is a good chance of that happening.
Alephium reduces energy consumption by 87% compared to Bitcoin and Ethereum (ETH-USD) while preserving a seamless “single-chain” user experience. This is achieved through Alephium’s BlockFlow, a sharding algorithm, and the proof-of-less-work consensus.
On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
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On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.