Altcoins with market capitalizations under $10 billion are showing potential opportunities for investors as they have been trading lower since Bitcoin reached a new high earlier in 2024.
RealVision’s chief crypto analyst, Jamie Coutts, noted in a post on June 13 that smaller cap crypto assets have been struggling since the peak in March this year. Bitcoin achieved an all-time high of $73,679 on March 13 but has since dropped by nearly 6% to $67,126, according to Cointelegraph Markets Pro.
Coutts believes that if this current decline is a typical mid-cycle correction, as he suspects, then there may be opportunities in mid and small cap cryptocurrencies once the market stabilizes.
Data from Bitformance reveals that in the last three months, the top 200 equal weight index, which gives equal weight to all cryptocurrencies regardless of market cap, has fallen by over 30% compared to the market cap index, where cryptocurrencies are weighted by their market capitalization size. This decline indicates that smaller cryptocurrencies have been underperforming relative to larger ones in the market cap index.
Coutts also highlighted that Bitcoin and Ether have only experienced declines of 11% and 5%, respectively, over the same three-month period.
Within the index, metaverse-related tokens have shown the lowest returns over the past three months, with a negative return of 44.13%. In the under $1 billion market cap category, tokens like The Sandbox (SAND) and Decentraland (MANA) have both seen declines of over 15% in the past week, according to CoinGecko.
Institutional interest in cryptocurrencies beyond Bitcoin and Ether is growing, with Franklin Templeton exploring a new crypto fund for institutional investors to access altcoins. While the asset manager did not specify which altcoins would be included in the fund, it recently praised the Solana network.
It is important to note that this article does not provide investment advice. All investment decisions involve risks, and readers should conduct their own research before making any decisions.