2 Small Cap Crypto Coins To Buy Now!
With crypto markets looking to rejuvenate just before the start of 2022, investors have started focusing their attention on these two small cap crypto coins which may be the best investment opportunity before the end of the year. With one coin existing on the Cardano network and the other already enjoying a huge bull-run of more than 200%, let’s look at these two small cap coins which could multiply in value.
Ardana (DANA)
Ardana is a protocol that the Cardano team has created as part of their mission to create an extraordinary and unique ecosystem that has no issues with the current ecosystems of different cryptocurrencies such as Bitcoin and Ethereum.
Cardano is looking to create an ecosystem that is not only cheaper than its competition but one that also allows for faster transactions speeds and increased scalability. They have worked to develop an infrastructure that will allow all their dApps to function on the existing Cardano network.
Ardana is looking to create an ecosystem that delivers a decentralised financial system that can be used by national financial institutions as well. It will also serve as Cardano’s MakerDao, which means that it will generate a stablecoin called dUSD, which moves with the price of the dollar. This stablecoin will be generated using ADA as collateral.
In order to actually earn the stablecoin that Ardana is generating, investors can generate them in exchange for CNT collateral deposits that have been locked on the smart contracts that exist on the blockchain. Another method would be to simply purchase them on any brokerage or online exchange as you would have while purchasing cryptocurrencies.
Why Should You Buy DANA Now?
Recently, DANA made a huge move after they officially announced their partnership with Near protocol. This partnership was established since Near protocol will look to help DANA with the transfer of assets, which is required for the dUSD to be successfully used as collateral against Cardano.
This partnership will also allow Cardano users to transfer assets from Cardano to Near. In turn, Near will also be available as an asset on Cardano and will also serve as collateral on Ardana. This will further help in DANA’s plan to mint stablecoins.
For Near, this partnership helps since it brings forward new integrations to their network protocol. Near protocol is already using proof-of-stake (PoS) consensus and has been working with Ethereum, Polkadot and Cosmos among other PoS networks. Now bringing in Cardano, which is the third-largest cryptocurrency in the world in terms of market cap will help further strengthen its existing blockchain. Ryan Matovu, the CEO and Founder of Ardana had the following to say about this partnership.
“The collaboration will help the two organizations explore new avenues for growth in the emerging blockchain technology ecosystem and will prove to be a milestone in the future for blockchain scalability.”
At the time of writing, you can buy DANA for $7.45, according to Coinmarketcap.
Loopring (LRC)
The next coin that could provide massive returns during the end of the year and maybe even next year, is Loopring, the token that powers the Loopring protocol. Loopring is a layer two solution and an ERC20 token that exists on the Ethereum network and runs to enable fast and scalable decentralised applications (dApps) on Ethereum’s smart contract network.
But despite Ethereum being the number one blockchain for investors to create all of these apps and protocols, it has its fair share of problems. These include high gas fees, slow transaction speeds, and scalability issues. While Eth 2.0 is looking to work on all of these issues to completely revamp the Ethereum network, no one knows how long it will take to solve these problems.
Loopring works to solve transparency, speed, and security issues that already exist on the Ethereum protocol. According to the company’s whitepaper, Loopring is an open protocol for building a decentralized exchange protocol on the Ethereum blockchain. The protocol also looks to reward its investors and users with rewards to enhance their own decentralized exchange. And to tackle the issues of speed, high transaction fees, and thought put, Loopring also conducts all computation off-chain and even leverages zero-knowledge proofs. So in blockchain terms, Loopring is essentially a zero-knowledge rollup protocol that combines with the smart contracts that exist on the Ethereum blockchain to make secure and scalable decentralized exchanges (DEX).
The current DEX on their protocol allows users to exchange many different digital assets at high speed with zero transaction fees. This is why the coin, which is still not mainstream, could be a good investment to hold. But, now let’s look at the crazy performance of the LRC token over the last month over huge rumours that have come out.
Loopring Soars In November After Gamestop Rumors
GameStop is one of the largest gaming retailers in the world, which was rumoured to tap Loppring’s scaling technology for an upcoming NFT marketplace that it had been working on. If this were to happen, the retailer and, more importantly, the Loopring network would be holding one of the most significant protocols on its network.
This caused the start of a rapid bull-run for this relatively unknown coin at the beginning of November. From the 28th of October to the first week of November, Loopring enjoyed one of the craziest bull runs, as it soared by more than 206% in just one week.
https://twitter.com/loopringorg/status/1455620220127780865?s=20
The company announced that it had reached a trading volume of $75 million in just 24 hours, the first time they enjoyed such a feat. But after reaching highs of $1.31, the coin corrected down to $0.38.
But Loopring wasn’t done just yet. From November 3 to November 11, Loopring enjoyed a huge run as it doubled its price and crossed the $3 mark. For context, it was below a dollar just a week prior to this. This was almost a 6x rise for investors of the coin, with Loopring finally rising by more than 66% on November 11th.
But the weeks following Mid-November have solely been about correction. According to Coinmarketcap, Loopring is currently trading at $2.65. From the all-time-high of $3.70, it is a correction of more than 30%. But as we see with the massive soaring of any small coin, such a correction comes sooner rather than later. From an overall standpoint, the coin which was worth only half a dollar on the last day of October, had still increased by more than fivefold.
While the GameStop news may have been a hoax, you cannot deny the protocol that Loopring has been working on, which gives users a faster and more secure way of exchanging digital assets on the Ethereum network.
But remember, the negative aspect of investing in small-cap coins is the risk associated. You can either be lucky enough to be part of a massive bull run, but there are also chances for the coin to completely fall down. Remember to invest sensibly and not put in more than you can afford to lose.
