The reason this cryptocurrency could increase its market cap from 100 million to 1 billion
The cryptocurrency market recently faced a significant price drop, particularly affecting altcoins which saw double-digit losses. Despite this, respected crypto analysts see this as a unique opportunity that only comes around once in a while, predicting a positive future.
The reason for this optimism is that certain cryptocurrencies may be undervalued in the current market but offer innovative solutions despite the speculative nature of the industry. Analyzing the market based on market capitalization can provide valuable insights into fundamental analyses and identify promising altcoins with significant competitive advantages. Market cap is a more suitable metric for this purpose compared to individual cryptocurrency prices, considering the wide variation in supply.
One such cryptocurrency that stands out is Nano (XNO), which appears to be undervalued with a market capitalization of around $100 million. Nano is currently trading at $0.86, with a maximum circulating supply of 133.24 million XNO and a market cap of $114.65 million.
Nano’s fundamentals are robust, aligning with Bitcoin’s vision of a peer-to-peer electronic cash system created by Satoshi Nakamoto. The coin’s distribution ended in late 2017, maintaining a non-inflationary supply for the past seven years. The Nano network offers fast and feeless peer-to-peer transactions, settling transactions within 0.5 seconds.
Recently, the network achieved a significant milestone by processing over 200 million blocks of XNO transactions. One popular use case for Nano is paying for AI tools like ChatGPT, Dall-E 3, and Claude 3 Opus.
The Nano protocol continues to be actively developed by volunteer open-source contributors, with two node implementations promoting code decentralization. Development activity on Nano surpasses many other cryptocurrencies with higher market caps, indicating strong community support.
Nano also boasts a high number of connected nodes relative to its market cap, with 1.44 nodes per $1 million of market cap. In comparison, Bitcoin has a significantly larger number of nodes but a lower ratio of nodes per market cap.
Moreover, Nano demonstrates a high on-chain transaction volume relative to its market value, indicating strong network activity. This suggests that Nano could be undervalued based on its fundamental metrics, although attracting sufficient demand and capital is essential for reaching a $1 billion market cap.
While Nano’s fundamentals and potential for growth are promising, investing in low-cap cryptocurrencies like Nano comes with increased volatility and risks. Investors should exercise caution and diversify their portfolios accordingly.