Mid-Cap and Small-Cap Altcoins May Present Investment Opportunities Amid Recent Market Correction

Altcoins with smaller market capitalizations may present buying opportunities for investors as the market stabilizes, following a period of decline.

After enduring significant declines since March, altcoins may present buying opportunities for investors as market conditions stabilize, according to experts.

Smaller-cap altcoins, defined as those with market capitalizations below $10 billion, could offer "some opportunities" for investors as they have experienced a decline in value since Bitcoin reached a new high earlier in 2024.

"Smaller cap crypto assets have been taking it on the chin since March high of this year," RealVision chief crypto analyst Jamie Coutts wrote in a June 13 X post.

According to Cointelegraph Markets Pro, Bitcoin experienced a nearly 6% decline to $67,126 over the past week, following an all-time high of $73,679 on March 13.

"If this is a regular mid-cycle correction we are experiencing, which I believe is likely, then expect some opportunities to be had in the mid and small caps once the market settles," Coutts added.

Top 200 Equal Weight Index Falls 30%, Highlighting Underperformance of Smaller Cryptocurrencies Compared to Market Leaders

Data from crypto monitoring service Bitformance shows that the top 200 equal weight index, which equalizes the weight of cryptocurrencies irrespective of their market capitalization, declined by over 30% in the past three months, compared to the market cap index, which weights cryptocurrencies according to their market capitalization.

The disparity highlights the inferior performance of smaller cryptocurrencies compared to the larger cryptocurrencies that dominate the market cap index.

During the same period, Bitcoin and Ether experienced declines of only 11% and 5%, respectively, as observed by Coutts.

The index's metaverse-related tokens yielded the lowest returns over the past three months, with a negative 44.13% return, according to the analysis.

In the market cap category of under $1 billion, metaverse tokens — Decentraland and the Sandbox — both declined by over 15% in the past week, according to CoinGecko.

The development coincides with the expanding interest from institutions in cryptocurrencies beyond Bitcoin and Ether.

On June 6, Franklin Templeton revealed that it's exploring the launch of a new cryptocurrency fund that would provide institutional investors with exposure to alternative currencies.

While the asset manager did not specify the altcoins that would be included in the fund's portfolio, it recently expressed admiration for the Solana network.

News source：https://www.kdj.com/cryptocurrencies-news/articles/midcap-cap-altcoins-investment-opportunities-market-correction.html

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