For every sector of the crypto space, two main periods come up. The first comprises when an innovation comes out, everyone gets excited, and the one where the technology actually gets adopted and utilized. Following the Arbitrum Nitro Upgrade, small-caps ultimately offer higher growth potential for the project. We took a look at the main Arbitrum small-caps.
Here are the essential Arbitrum small-caps to focus on.
Top 5 Arbitrum Small-Caps
1. HandleFi ($FOREX)
The primary advantage of undertaking small-cap investing is the significant upward growth unmatched by larger companies. HandleFi is a forex trading platform funded by a bunch of Tier AVCs. However, it is not only a forex exchange but allows one to borrow in their currency.
Handle comes as a well-positioned small-cap as people are looking to short fiat and increase crypto exposure.
2. Liquid Finance ($LIQD)
There is the likelihood that Liquid Finance’s Frax-style ETH-pegged token lqEth could move to an unmountable distance, playing the Real Yield narrative that is pioneered by the rest of the Arbitrum ecosystem. Having a novel product, their market cap at $1.5m seems quite low.
Additionally, lqEth/ETH pool pays out a 200% yield, free from impermanent loss, making it even more attainable. It is not just a farm-and-dump token, with the 40% supply locked in by stakers. This puts Liquid Finance into the top 3 of our Arbitrum small caps to focus on.
3. Galleon DAO ($DBL)
Galleon is one of the projects where they have not stopped shipping from its starting point. With their narrative-based indexes, they are breaking new ground in the Structured Product space, which includes;
- A portfolio structured around the Merge.
- A veToken Index.Galleon DAO
- A $SNX eco token.Galleon DAO
- A product around max fee collection
4. Sperax ($SPA)
Sperax stands out as a stable coin product, having the best APRs in crypto and on Arbitrum, but receives minimal attention. Sperax can make one earn so much by farming out the tokens deposited as collateral, and the team is ultra-DeFi-native. In addition, it uses Plutus DAO to route bribes through CRV and BAL, which maximizes yields.
Having a 7% yield, Sperax seems like the most desirable place to park stables on Arbitrum.
5. Cap Finance ($CAP)
Cap Finance has been saved from the brink after their lead development left. It has a perpetual protocol competes with Mycelium and GMX, ranking it among the top protocols.
On August 30th alone, for instance, Cap Finance did $50,000 in revenue against a $10m market cap.
Thorough scrutiny of such small-caps and investments can open up unmet opportunities in the coming days. Still excited to what the team has in store for the coming months.
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Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.