In this line, the top three new cryptocurrencies tracked by CoinMarketCap have cumulatively attracted about $1.5 billion in capital inflows within four days. Metaplex (MPLX), the decentralized protocol for commerce on Solana (SOL) network, ranks top with a market cap of $757.9 million, trading at $0.76 by press time. Elsewhere, with a market capitalization of $649.47 million, Point Network (POINT), the Web 3.0 implementation protocol, ranks second. The token was trading at $0.46 by press time. Secure trading-centered cryptocurrency Diamond Launch (DLC) lies in the third spot with a market cap of about $100.02 million, trading at $0.1.
Market volatility extends
The capital inflow into the new cryptocurrencies has emerged despite the general market confidence remaining low, with established assets like Bitcoin (BTC) and Ethereum (ETH) recording an increased selling pressure. Although there is no specific reason behind the record inflow into the new assets, it can be assumed that the investors are banking on the utility of the particular tokens. Notably, there is a general consensus that cryptocurrencies with a strong utility are likely to survive longer. Therefore, getting involved at an early stage amid the depressed market ensures investors can invest at a discount with hopes of making profits in future. Historically, bear markets have offered a chance among investors to purchase specific assets with hopes of profiting once a rally kicks in. At the same time, the success of assets like Bitcoin means that crypto investors are potentially scouting for digital assets likely to follow the same course and invest early. Notably, earlier and long-term investors in Bitcoin are among market participants who have gained from the flagship cryptocurrency’s previous rallies.
Importance of high market cap
It is worth pointing out that the market cap indicated the potential of the highlighted cryptocurrencies. In this case, the market cap informs the level of risk associated with the cryptocurrency and its growth potential. However, in some cases, cryptocurrencies that exhibited significant capital inflows in the early stages have become scams. Overall, creators of different crypto projects also appear undeterred by generally launching new assets. Finbold reported that total cryptocurrencies have surged past 21,000 since September 20. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
