API - Here's 1 Small-Cap Cryptocurrency to Consider Right Now
There are thousands of cryptocurrency projects out there to choose from. Investors looking to weed through the top 500 cryptocurrencies are likely to find some very unique projects that fly under the radar of most investors.
One smaller-cap project I’ve been watching is API3 (CRYPTO:API3) a token with a market capitalization of $140 million.
Here’s why this is a top cryptocurrency on my watch list right now.
API3 is a small-scale project catching eyes
API3 is among the smaller projects I’ve looked at — currently ranked 360th on the list of largest cryptocurrencies. However, I think this small-scale project warrants a look from investors.
Much of the growth we see coming out of the crypto space is via decentralized applications. These applications are built by developers, typically utilizing existing infrastructure to do so.
However, integrating outside data (such as price feeds) into blockchain-based applications such as decentralized exchanges isn’t easy. Other oracle networks have popped up to solve this problem. However, API3 offers a unique solution to this off-chain data integration issue.
Via providing decentralized APIs (the building blocks developers use to build applications), developers can interact directly with API providers. Without an oracle network, this means an improved cost profile for developers and more money in the hands of those behind the actual APIs themselves.
The hope is that API3’s technological innovation could spur more application development. This would then result in more value created, boosting the entire crypto sector.
Accordingly, this is a token with the potential for far-reaching impacts, that most investors don’t know about.
Is now the time to buy this crypto?
The price action for API3 has been interesting to watch, to say the least. This volatile token spiked the third week of January, at a time when other top cryptocurrencies were struggling. This spike came on the announcement that Binance would be listing the API3 token. This listing prompted a violent surge higher, followed by a quick decline.
Some investors suggest API3 is generating a significant following — a bullish catalyst for long-term investors banking on the next big winner in this space.
Perhaps it’s too soon to say that. I mean, this token is still down on a year-to-date basis, and its longer-term chart looks like a roller-coaster ride. Whether this is a good entry point to buy right now remains to be seen. However, there’s a lot behind this crypto project I think is worth considering.
Currently, API3 is a token that’s on my watch list, and I’m going to be diving into it more. However, it’s one I think investors looking for under-the-radar tokens should check out.
The post Here’s 1 Small-Cap Cryptocurrency to Consider Right Now appeared first on The Motley Fool Canada .
Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool owns and recommends API3.
2022