Scan the top 10, 20, or even 30 coins on Coinmarketcap and you’re talking figures to make Warren Buffet break a sweat, with coins having market caps upwards of a billion dollars. For rookie investors, these whoppers are safe havens – providing about as much security as is possible in this hair-raisingly volatile crypto market.
Yet, perhaps your inner crypto-hipster calls for something underground; something that hasn’t hit headlines yet that’s potentially as good as gold. Naturally, you might think about flipping the chart on its head in search of an undervalued diamond in the rough.
To get you started, we walk you through 5 small market coins with some seriously promising partnerships.
(Statistics quoted are accurate as of March 24, 2018)
1. Power Ledger (POWR)
A peer-to-peer renewable energy marketplace based on Ethereum, Power Ledger is positioned to become the backbone of the booming renewables industry. With support for transmission data, carbon trading, wholesale market settlement and more, POWR is an energy official’s dream and is becoming exactly that.
It should come as no surprise that they have a number of political partnerships, including with government-backed BCPG in Thailand, US-based NGO Helpanswers, not to mention financial backing by the Australian government.
Weighing in at $133 million by market cap, POWR is no pipsqueak by any means but there’s potentially room for a 5-10x improvement as they roll out renewable energy networks globally.
2. Horizon State (HST)
There’s a million and one use cases for blockchain’s trustless immutability, but few are more apparent than for voting. Horizon State’s decision-making and voting platform is set to be a game-changer, effectively creating a bulletproof ballot system that’s clean, cheaper, streamlined, and unhackable.
The Australian project has attracted the attention of none other than the UN, with HST helping realize their vision of a transparent, inclusive (democratic) global landscape. Having already been used for multiple nation-wide Australian polls and received backing from software giant SAP, Horizon State may be replacing that old-school ballot box in your local area soon enough.
Sitting at a market cap of just under $25 million, this little guy is a steal with plenty of potentially bullish movement on the cards.
3. SONM (SNM)
SONM’s “Universal Fog Supercomputer” might be a mouthful to digest, but once you understand the concept you’ll be reaching for a second slice. Simply put, SONM combines the power of all computers on its network, indeed offering a world supercomputer capable of complex computing, page hosting, and nearly any old process imaginable.
Looking at affiliations, the first promising sign was SONM’s entrance to the Open Fog Consortium, a collaborative effort to boost fog computing founded by some of the biggest names in the game: Intel, Dell, Cisco, Microsoft, Arm, and Princeton University. It seems corporate interest wasn’t just piqued by the concept of their ICO, with SONM having just announced entrance into Intel’s exclusive Cloud Insider program.
What is truly promising about the SONM project is its ever-expanding web of partnerships with complementary organizations that will benefit from SONM’s supercomputer capabilities: Dbrain(neural network training), Aion (blockchain network) and Storj Labs (decentralized cloud storage).
With a high level of interest from corporate giants and startup tech companies, and a current market cap of under $49 million, SONM could hit a home run once its supercomputer takes hold.
4. Ambrosus (AMB)
What market is more evergreen than food or drugs? Ambrosus is a blockchain-based ecosystem aiming to inject trust and traceability into the multi-trillion dollar food and pharmaceutical industries.
We’re talking high-tech sensors, data labs, and supply chain management; a whole ecosystem where consumers and corporations can use Ambrosus to establish trust in the origins and ingredients of their food/pharmaceuticals.
Having joined the fabled Ethereum Enterprise Alliance, the Swiss project is up to its neck in interest from corporations and NGOs, wanting “to choose the best partner for a long-term collaboration and to avoid squabbles and problems.”
Trek Therapeutics has engaged Ambrosus for clinical trials, Nestle is in preliminary talks about a pilot project, and Ambrosus is in talks with the United Nations to see their technology implemented globally. As the project’s CEO and CEO used to sit high up on the food chain in Nestle and the UN, it would be safe to say these prospective partnerships will go the distance.
Considering the hefty value of solving a trillion-dollar problem, their potential simply isn’t reflected in their $42 million market cap. Hold on tight, because when this one goes it will surely light up like a Christmas tree.
5. Simple Token (OST)
Creating a crypto-business on Ethereum might be a walk in the park for your average blockchain developer, but Simple Token makes launching your own token easy as Sunday morning. Using Simple Token, apps, communities or businesses can design and manage their own tokens without having to roll up their sleeves and see what’s under the hood.
Just about anybody can build a professional crypto-project on their platform, essentially making it like Ethereum, but… simpler. After lowering the barriers to entry, dozens of established businesses have teamed up with Simple Token to take their business into the decentralised economy. Already on board are Unsplash, the biggest online photography platform, and LytePay, a decentralized finance platform geared towards the fast-growing gig economy.
A little shy of $52 million, Simple Token’s market cap has ample room to grow as more and more businesses migrate to the decentralized economy.
While partnerships are certainly a positive sign when you’re on the hunt for an undervalued coin, it pays to take them with a grain of salt. At the end of the day, partnership announcements have time and time again added to the FOMO/moon/lambo vibe. They can overhype projects that underdeliver, or simply artificially spike the price of the coin as punters pour in and wait for a pump.
That said, if you’ve done your due diligence and are confident your little guy can deliver, there’s no reason not to take partnerships as a good sign. They certainly lend credibility and longevity because after all, the more parties a project has to answer to, the less likely it is to pull a Houdini.
2019 Bull Season: Altcoins Get Rekt’d, 1 Down 14 to Go?
- XRP, Cardano, Stellar, Dash, and IOTA still down over 92%
- VERI token dropped like a ton of bricks after SEC filed a lawsuit
- Risk of holding ICO tokens that could be tagged as unregistered securities
Bitcoin is down but altcoins are still not showing much activity. Crypto winter might be over but for altcoins, there seems to be no end in sight as many top cryptocurrencies like XRP, Cardano, Stellar, Dash, and IOTA are still down more than 92%.
The leading cryptocurrency enjoyed a bull run in the second quarter of 2019, up 185% YTD. However, since BTC broke out in April, Altcoins did exactly the opposite and went downhill as depicted in the chart shared by popular analyst Willy Woo.
Despite losing a major chunk of their value, altcoins aren’t done falling. As for the alt season, it is hard to know if we will even get to see one this time as while some believe only particular altcoins will be able to rally, others don’t see any uptrend for them in the future at all.
Meanwhile, regulators have crackdown on one of these altcoins. The SEC has filed a lawsuit in federal court to freeze the assets of Reggie Middleton, organizer of Veritaseum (VERI), for conducting a fraudulent and illegal $14.8 million initial coin offering (ICO) in 2017.
The price of VERI token dropped like a ton of bricks, going from $17 to $4, in less than 12 hours.
“This is the risk you take by holding ICO tokens that could be tagged as unregistered securities, even if you’re just looking for a quick trade,” said Jake Chervinky, General Counsel at Compound Finance.
This crackdown has one of the altcoins from “Fifteen dead cryptocurrency predictions,” by Nic Carter, Coin Metrics co-founder and board chairman, taking the dagger.
The other fourteen in this list created in January 2018, are Railblocks (Nano), Iota, Verge, Dash, EOS, Bitcoin Gold, Bitconnect, NEM, Tether, Hshare, Augur, Electroneum, Storj, and Iconomi.
It’s yet to be known which altcoins will emerge as the winner and which ones will be dead, however, Binance’s native token BNB, Chainlink, and recently Litecoin has shown promising growth and price action.
XRP, ETH, and other altcoins show surprising deviation from Metcalfe’s law
Popular altcoins like ETH, XRP, and TRX were seen following the footsteps of BTC as they mirrored BTC’s surge and drop. Bitcoin, with a market cap of $207 billion, is the largest cryptocurrency and the on-chain activities of the coin like transaction volume, active addresses, number of transactions, etc. have been influencing the growth of the coin’s market capitalization.
Market cap of altcoins is fairly lower than that of Bitcoin and crypto company Messari shared a cross-sectional study in an attempt to examine the correlation between the market cap of altcoins and its on-chain metrics.
Contrary to the time series analysis (which studies the advancements of one asset over different intervals of time), Messari used cross-sectional studies to determine the required data with multiple assets, at one point in time.
The research considered three on-chain activities to determine if there was a positive correlation between the market cap of altcoins and the latter.
The above image displays the best fit line between transaction volume and liquid market cap where each dot in the graph represents crypto assets. Moreover, the graph also paints a brief picture of transaction volume in the last 24 hours in relation to its liquid market cap. Simply put, it can be inferred from the graph that the altcoin with the highest market cap had the highest transaction volume, but this is not set in stone.
Additionally, the second graph depicts the relationship between the active addresses of the altcoins and liquid market cap in 24-hours. As expected, a trend similar to the first graph can be seen here.
The last graph also revealed a similar trend as the liquid market cap of the altcoins was the highest when the number of transactions was the highest.
While the findings were in line with the expected result, it defies the famous Metcalfe’s Law, which suggests that the strength of the network is proportional to the square of the users. In this case, the relationship between crypto-assets and market cap and on-chain metrics was found to be linear.
Crypto Update: Altcoins Turn Lower As Litecoin’s Rally Runs Out Of Steam
While the cryptocurrency segment, and especially Bitcoin, was headed for another bullish close, the major coins all suffered a hit in US trading, with especially Litecoin losing ground ahead of the weekend. BTC is still relatively strong, despite the late-day dip, and the most valuable coin is holding on to most of its recent gains while hovering above the $10,000 level.
The strong divergence between the majors continues to hint at a bearish continuation, even considering BTC’s relative strength, as with LTC’s dip, Bitcoin is now the only top coin in a somewhat bullish short-term technical position. That said a broad recovery rally still can’t be ruled out, and while odds favor a move below the recent swing lows, bulls still can hope that the larger scale rally will resume in the coming weeks.
Our trend model remains on sell signal son both time-frames in the case of the top coins, even though BTC got close to a renewed short-term buy signal in the past couple of days. Traders should remain defensive here due to the market-wide weakness, and even if a buy signal is triggered in the coming days, strict risk management rules should still be applied.
BTC/USD, 4-Hour Chart Analysis
Bitcoin is now the sole coin with a chance of establishing a short-term uptrend, but given the segment-wide weakness, the outlook is far from being clearly bullish. The coin is still well below the mid-July swing high, but it remains above $10,000, and well clear of the lower boundary of the consolidation range that developed following the recent plunge.
While the coin is not far from a renewed buy signal in our trend, and a confirmed swing low would be sufficient for an upgrade, traders should remain cautious, as the broad weakness could lead to a violent sell-off in the segment should the prior lows be violated by the major altcoins. Below $10,000 support is found near the $9,200 level, with further key zones near $8,400, $8,200, and between $7,600 and $7,800, while resistance zones are now ahead near $11,300 and $13,000.
ETH/USD, 4-Hour Chart Analysis
Ethereum is also stuck in the short-term consolidation range, and while the coin has been trading in a narrow range today, the dominant pattern remains bearish in its market. The weak rising trendline is still intact but odds continue to favor a move below $200, which could trigger another significant sell-off. The coin is in clear short-term downtrend, and it remains relatively weak from a technical perspective compared to the likes of BTC and even LTC.
Our trend model remains on sell signals on both time-frames, and while still can’t rule out a broader recovery rally, traders should avoid entering new positions below the key $230 resistance level. Below $200 further support levels zones found near $180, and $160, while above $230, resistance levels ahead near $260 and $275.
Litecoin Fades as Ripple Threatens With Breakdown Again
XRP/USD, 4-Hour Chart Analysis
Ripple still hasn’t shown any sign of relative strength despite the rally attempts in the segment, and as wevrepeatedly warned, it remains the prime candidate to lead the market lower. The coin is still stuck below the $0.32 level and within its bearish consolidation pattern. XRP looks ready to test the $0.30 level again, and a breakdown looks more and more likely.
Our trend model is still firmly on sell signals on both time-frames and the long-term bear market will likely resume soon, even considering the possibility of a broader recovery rally in the segment. Below 0.30, XRP strong support is found near $0.28 and $0.26, with further resistance zones also ahead near $0.33, $0.3550, and $0.3750.
LTC/USD, 4-Hour Chart Analysis
Litecoin has been acting bullish for the past two days, but today, it turned sharply lower after failing at the $100 price level. The coin also remains below the dominant declining short-term trendline, and it looks ready to test the key $85-$90 support zone once again, and a move below that zone is still likely in the coming weeks.
LTC remains on sell signals on both time-frames in our trend model due to the failed rally, but a renewed buy signal is still not out of the question, as the short-term consolidation pattern is still intact. Below $85, further support zones are found near $75 and $64, with resistance zones ahead between $110 and $112 and near $125.