9 Small-Cap Cryptocurrencies With Growth Potential

These small-cap cryptocurrencies are flying under the radar

20 Min Read
Last Updated July 23rd 2021

Are you on the lookout to find the best small-cap cryptocurrencies in 2021? Then take a look as we have picked 9 of the best low cap cryptos that are sitting attractively on the market today. 

Best Low Cap Cryptocurrencies To Invest In For 2021 

Since the evolution of the crypto world first began back in 2009 with arguably the most famous cryptocurrency on the market, Bitcoin, has now led to thousands of cryptocurrencies available on the market today.

And attention on this exciting evolving market keeps on building and shining for reasons such as influential figures backing certain cryptocurrencies, take Tesla CEO Elon Musk as the prime example, the media, businesses across the globe continuing to accept virtual payments for products and services, along with many more reasonings is causing many across the globe to jump in and become apart of the action.

What Are Small-Cap Cryptocurrencies You May Ask?

Firstly, to clarify what is meant by the terminology small-cap cryptocurrency it basically refers to the total value of coins a cryptocurrency has that rests roughly around the $1 billion price mark. The way in which the market cap gets calculated is by multiplying their current price against the circulating supply. Very similar to how stocks are calculated. The positives for investing in small-cap cryptocurrencies is that they do and can offer plenty of room for growth and can even provide even greater returns over the bigger players like Bitcoin (BTC) and Ethereum (ETH). 

However, although small-cap coins hold strong positives it is also worth pointing out that they do hold greater risk elements than that of large-cap cryptocurrencies as more than likely when you see or come across a small-cap cryptocurrency, most will be new to the crypto world and are still in the development process of finding their feet. Naturally, this poses stronger risk elements because these cryptos are inexperienced on the market and will hold a much lower audience compared to other performing cryptocurrencies on the market that have already proven their ability.  

Identifying And Picking The Best Small-Cap Cryptocurrencies On The Market

When it comes to identifying and picking out the best small-cap cryptos on the market this can be a rather challenging task to undertake. There are many factors crypto holders have to look into before investing including the first vital point of taking a look at your country’s rules and regulations with cryptocurrency as not all countries are lenient with crypto activity. 

Factors to look at when looking into picking the best small-cap cryptocurrencies: 

  • As stated above, the first and one of the most important steps to look into is to see what your country’s rules and regulations are on cryptocurrencies. Some countries such as China for example have strict measures in place when it comes to the activity and use of cryptocurrency. 
  • Research, research, research. From reports to media outlets to expert recommendations, all of these forms of research will help you to get a clearer indication of whether a cryptocurrency of interest is something potentially worth investing in. 
  • Emphasising on research, taking a detailed look into experts' technical analysis and predictions is strongly recommended when looking into any asset of interest. 
  • Lastly, scams are a frequent occurrence within the crypto world and can be extremely costly for crypto holders. By taking the right steps in order to avoid fraudulent activity holders can look at a cryptocurrency's supply rate to give an insight to see if scam activity is apparent. 

Now we have looked at a few key elements of what to look for when looking into small-cap cryptocurrencies, now it's time to take a look at 9 of the best small cryptocurrencies that look to have strong growth prospects in 2021. 

Best 9 Small-Cap Cryptocurrencies To Invest In With Growth Potential: 

There are plenty of excellent buying opportunities among small-cap cryptocurrencies that have the potential for significant growth in 2021 and beyond. Here are nine of the top small-cap crypto picks with growth potential.

  1. Shiba Inu (SHIB)
  2. Aave (AAVE)
  3. EOS (EOS)
  4. Tron (TRX)
  5. Stellar (XLM)
  6. Filecoin (FIL)
  7. Algorand (ALGO)
  8. Compound (COMP)
  9. Yearn.Finance (YFI)

 

Shiba INU (SHIB) 

Market Capitalisation: $3,145,788,969      

The first small-cap cryptocurrency to consider buying is the meme cryptocurrency Shiba Inu, also known as Shiba Token SHIB. Shiba Inu is a decentralised cryptocurrency that was created under a mysterious group of individuals back in 2020, aiming to be the Ethereum part of Dogecoin’s algorithm with the added positive of SHIB tokens listed on its very own decentralised exchange platform ShibaSwap.   

Following the explosion of the crypto world, Shiba Inu has become one of the small-cap cryptos to be thrusted into the spotlight heavily for being a competitor to the popular Dogecoin cryptocurrency. The meme crypto craze boomed after the likes of Elon Musk gave his backing to his go-to crypto Dogecoin which saw the price of this crypto rise dramatically overnight and has since led Shiba to become the new latest small-cap crypto on the market to be a part of, even been labeled as the “Doge killer”.

Shiba Inu is currently down by 79.35% from its all-time high it reached back on May 10th following the crypto crash, but has since shown signs of improvement. Analysts predict that this cryptocurrency could reach $1 in the coming years and could look to double in price by the end of 2021 to $0.0000202 if the momentum continues to move forward. 

Although the SHIB token may be down this week by around 2.25%, this meme crypto announced that holders can now look to spend their SHIB tokens on the Shopping.io platform, where holders can look to purchase items from Amazon, Walmart and eBay to name just three retail giants on the list. 

Being a cryptocurrency favoured by many including business tycoon Elon Musk, SHIB rose by 16% within a matter of minutes following a tweet from the business tycoon making this meme crypto one that is looking to be a great small-cap cryptocurrency that has great growth potential looking ahead. 

Shiba Inu is up in volume by 4.45% within the latest 24-hour period upon writing this report with a circulating supply of $394,796,00 billion SHIB. 

Aave (AAVE) 

Market Capitalisation: $3,650,384,931 

As the DeFi industry continues its immense growth one small-cap cryptocurrency to be a part of is Aave

Unlike other cryptocurrencies on this list, Aave works slightly differently. Aave is a decentralised open source finance protocol built off the Ethereum network that enables individuals to earn interest from deposits and enables holders to lend and borrow crypto by taking out loans without having to pass any credit checks beforehand. Additionally, Aave also serves as a governance token, meaning that crypto holders can have a say in the future development of the platform. 

Following the recent pullback, Aave has since been climbing back within its price where today its price stands at $291.70, almost 60% down from its all-time high back in May 2021 following the market crash. In recent days Aave has gained by almost 30%, reaching above $350 at the start of the week following the announcement of Aave Pro which is set to come to the market at the end of this month. 

The new protocol has been designed to provide institutional investors with direct access to decentralised markets by using private pools away from the current pools on Aave. In the announcement Stani Kulechov, CEO and founder of Aave advised “The new protocol will benefit from different kinds of permissioned markets [..] and will be more layered and tailored to specific needs.” 

Looking at AAVE tokens' future, analysts are predicting a strong future ahead with Aave potentially looking to reach $900 by December 2022, and potentially reaching over $1,200 by 2025. Coming from this cryptos all-time low of $25.17 in Nov 2020, Aave has gained over 1050% over the past 7 months and looks as though it has a lot more to give looking ahead. 

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EOS (EOS) 

Market Capitalisation: $3,484,218,977 

The dApps market is another market within the crypto space that is poised to continue to grow at an impressive rate over the coming years which is why EOS comes in next on the list of a crypto that looks to be a good buy with strong growth prospects. 

If you are not familiar with EOS, EOS is a decentralised operating system that is based on blockchain that has been designed to host, develop and support decentralised autonomous applications (dApps). But one of this crypto’s main standout features compared to other cryptocurrencies on the market is that EOS nodes are subject to rules and regulations. 

Being named the “Ethereum Killer”, EOS can work on a rapid transaction speed of approximately around 2800 transactions per second according to data, which is significantly higher than its biggest competitor.  

As of today, EOS is ranked the 28th largest cryptocurrency in the world. On the 2nd May 2021, EOS coin managed to reach its 52-week high of $19.21, but following the recent market crash the coin dropped significantly in value to where it is slowly on the recovery trading at $3.58 upon writing this report, a small change of 1.07% over the past 24 hours. 

Analysts are being rather bullish on their outlook of where they can see EOS reaching in the coming years, with some advising that EOS could potentially begin 2025 at a starting price of $20, showing an upside of over 450% from its current price. On a realistic outlook for EOS,  although momentum is looking to be going the opposite way, things should start to pull forward for EOS with predictions that this crypto could look to improve its price to $4.00 in the coming month or two. 

Read Also: Will EOS Make Me Rich in 10 Years?

Tron (TRX) 

Market Capitalisation: $4,353,881,401

Tron is the next small-cap cryptocurrency to come in next. To clarify, Tron is the blockchain and TRX is its cryptocurrency. 

Focusing on entertainment and sharing of creative content, Tron's uniqueness stands out for holders who are looking for something different in the crypto market. In short, Tron is a decentralised platform that has been designed and created for the creatives that delivers financial rewards. Additionally, Tron also allows creatives to develop and create their own tokens and be used on their own dApps on Tron’s network. 

Despite the recent crypto crash, Tron is managing to pick up the pace once again. Tron is now averaging a daily trading volume of over 9 million trades per day according to data, and is priced at $0.06026 with total value on Tron’s blockchain being in excess of $8 billion. Following the good news, founder Justin Sun has set out a new benchmark aiming for transactions to reach over 10 million per day in the coming months. 

Another addition to Tron is the announcement that USDC Stablecoin is now live on the Tron blockchain adding another positive for the popular network. Despite TRX losing around 4.5% in value over the past 24 hour period, and with analysts predicting that the declining trend may continue over the coming days, Tron is still one small-cap cryptocurrency that should not be overlooked and is more than capable of archiving great returns in the long-run.   

Stellar (XLM)

Market capitalisation: $5,649,762,811 

Stellar is an open-source decentralised network that enables holders to place and move digital currencies such as its own token Stellar Lumens, Bitcoin and Ethereum at low-cost transfers across borders. Based on Ripple’s (XRP) Lab protocol, Stellar seeks to be a more affordable option in terms of trading across borders making Stellar one of the most competitive and one of the most attractive cryptocurrencies on the market today. 

The room for growth for Stellar is undeniable. Not only does this network have various digital currencies on its network but holders can also have US dollars, Euro and Chinese Yen with the potential for more worldwide currencies to be added on in the future as cryptocurrency gets further seal of approval worldwide. 

Secondly, as the likes of other cryptocurrencies become even more popular this should naturally grow Stellar to new highs as more individuals take use of the Stellar network in order to save money. 

Ranked the 20th largest cryptocurrency on the market, Stellar currently trades at $0.2459 upon writing this report, down from its 52-week high of $0.7965 in May 2021, confirming that now is a great time to look to buy in on the action whilst XLM sits at a discounted price. 

Furthermore, analysts anticipate that the XLM token could reach $1 by the end of year and could potentially lead on to quintuple by 2025. If you're looking at cryptocurrency for the long term that combines it all, Stellar takes one of the top spots for one of the best small-cap cryptos to buy in 2021.

Filecoin (FIL) 

Market Capitalisation: $4,734,213,856 

The worlds largest open-source decentralised storage system Filecoin aims to allow users to rent unused hard drive space along with “storing humanity's most important information”. 

Being a popular choice for beginner crypto holders, Filecoin is currently trading away from its all-time high of $237.24 it reached back in April 2021 and is today currently trading at $55.48 upon writing this report. However, this is actually a positive for the popular crypto as it looks as though there is plenty of room for growth looking ahead, especially as the partnership with Sydney-based Holon Innovations is underway that aims to expand Filecoin’s storage facility and potentially build an “Airbnb for storage” as expressed by managing director Heath Behncke.  

Looking to the future, analysts are predicting a good outlook for Filecoin predicting that the FIL token could potentially reach above $80 by the end of 2021 and in the long term, the coin is expected to grow above 1000% over the next five-year outlook.  

Based on potential, past performance and growth ability Filcoin looks to be an underrated open-source cryptocurrency that has the potential to be one of the biggest performers in the coming years, making FIL at present a good opportunity not to be missed. 

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Algorand (ALGO)

Market Capitalisation: $2,853,303,945

Another under the radar crypto is that of Algorand.

Algorand is an open-source decentralised blockchain network that aims to merge traditional finance and decentralised finance together in order to create a system that is secure, all inclusive and efficient. 

At the start of 2021, the ALGO token witnessed an impressive start reaching $1.82 back in February 2021, although still down from its all-time high of $3.28 it reached back in June 2019. But as the pullback began, the ALGO token today now sits at its discounted price of $0.9118 upon writing this report but nevertheless the potential for future further growth is undeniable.

Algorand has something unique that other small-cap crypto’s on this list do not benefit from. Firstly, Algorand is used by over 450 organisations worldwide, this is not including the fact that well-respected universities also use Algorands technology proving that there must be something uniquely special about this network over others that are currently on the market. 

Additionally, Algorand is the world's first proof-of-stake (PoS) blockchain meaning that less energy is used compared to proof of work (PoW) protocols and operates by using a class of mechanisms to select users at random in proportion to their quantity to vote on proposals and in most cases receive rewards for taking part. 

Being one of the most unique and looking to be one of the slightly safer cryptocurrencies than other small-cap crypto’s on the market, this altcoin looks to be one to add to your crypto collection in 2021. 

Compound (COMP) 

Market Capitalisation: $2,225,101,694 

Compound, the decentralised blockchain-based protocol that enables users to lend, borrow and earn interest by depositing monies into various protocols on its platform comes as another cryptocurrency that looks to have strong growth prospects ahead. 

Following the recent crypto downturn, Compound was arguably one the heaviest hit cryptocurrencies losing over 70% in value, in what felt like overnight from its all-time high of $911.20 back on May 12th. Today COMP stands upon writing this report at $418.70 and is now showing an upward trend following on from its June low of $223.45. 

Just like Bitcoin, COMP has a capped coin supply of 10 million which has been portrayed by investors to be an attractive factor to take into consideration when considering this crypto, especially as investors look to find the next Bitcoin sensation. 

Additionally, analysts are predicting a strong future for COMP, predicting that COMP could potentially see its price move above $700 in 2022 and looking at an upside of up to 750% over the coming five-year outlook.  

Having just over $7 billion locked up in value, COMP looks to be a good addition to add to your collection in 2021. Compound is around 54% down from its May high, confirming right now it holds a discounted price to take advantage of. As more individuals look to further explore DeFi products outside of the banking system, this places this crypto at the top of the list firmly. 

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Yearn.Finance (YFI) 

Market Capitalisation: $1,220,548,808

The last small-cap cryptocurrency to come in on the list of 9 is Yearn.Finance. 

Launched back in early 2020, Yearn.Finance has caught the attention of many investors for simplifying investments, and has vastly become one of the new nex-gen exciting players within the DeFi sector. Back in 2020 it's also worth pinpointing that Yearn.Finance exceeded the popular cryptocurrency Bitcoin in price confirming that this crypto has something special and unique to offer crypto holders. 

Within recent days YFI has been showing some upward trend within its price, reaching a price level today of $33,469 upon writing this report, a rise of 0.81% within the past 24 hours and  64.20% down from its all-time high back in May 2021 of $93,435,53 following the downtrend. The DeFi sector is also showing positive movements, as over the past week the sector has returned almost 5% with Yearn.Finance adding to the progressive growth. 

Moving forward, analysts are being bullish expecting that Yearn.Finance could potentially reach just below $90,000 by the end of 2021 if the positive trend continues. Looking at Yearn.Finance in the bigger forecast, experts are predicting that the YFI token could average out at a price of above $100,000 as the market evolves in the next five years. 

YFI is one of the most exciting cryptocurrencies on the market today and one that has the potential to gain fantastic returns for its holders in the long term. 

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Overview: Small-Cap Cryptocurrencies 

Cryptocurrencies are evolving at an impressive rate in 2021 with over 10,000 crypto’s currently on the market today. And as the coming years unfold, cryptocurrency is looking set to be one of the next-generation methods of payment that is already pushing its way across the globe, making now an opportune time to think ahead and take advantage of these discounted crypto prices as they prepare to once again rise. 

All of the 9 top small-cap cryptocurrencies listed above look to be the best buys on the market right now in 2021 based on their current trading prices for their evidently strong growth prospects. The deFi sector is one sector that looks as though it will carry forward its impressive run that it has showcased over the past year making this sector within the market one that crypto holders shouldn’t overlook.

Additionally, keeping an eye on the latest crypto trends is also a must as this will give holders a clearer image of where the crypto market will head in the coming years that holders don't want to miss out on. 

However, before looking to invest into any cryptocurrency additional research is strongly advised. A strong factor that this market holds over other investment markets is that it can be extremely volatile and can witness rapidly quick price movements in a matter of seconds, so it pays to use due diligence from the start. 

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