The crypto market is seeing a lot more activity, as well as significant cash flow in 2019. As soon as the bear market started to let go, the investors started returning, and the results are clear — the crypto market is gaining strength once more.
Another proof of this can be seen in the performance of Weiss Small-Cap Crypto Index — the only small-cap crypto index in the world. Around two months ago, the crypto index saw trading at around 2,995. However, after taking another look this week, it is evident that it becomes nearly four times higher, after surging past 11.410.
The benefits of Weiss Small-Cap Crypto Index
It is understandable that some might be thinking this is a fluke, and if it were to happen to a single coin, it might very well be. However, there is a lot of evidence that suggests otherwise. For example, Weiss Small-Cap Crypto Index lists as many as 70 different digital currencies, all of which are traded actively enough to deserve their place on the list. Additionally, all of them meet the requirements in terms of technology and adoption to be found on the Weiss Crypto Rating’s list.
On top of that, not a single one of the coins listed compromises over 4% of the Crypto Index. In other words, the Index is broad and solid enough to provide a real sample of the current situation and allow for several conclusions regarding online trading in the past two months.
The first thing to note here is that the Index can serve as an indication of what is really happening in the small-cap sector, which was pretty much impossible to discover earlier. Next, the small-cap sector can be used as an indicator of what the entire crypto market is experiencing. It was correct in predicting the rally that took Bitcoin price past the $5,000, and it did it almost two months before it happened.
Finally, this index can be extremely beneficial for investors who can afford to take the risk. The predicted value of the index in 2017 was 100, and it is currently trading 100 times higher, even after the crypto winter that struck in 2018.
Further, the decline in prices that came as a consequence of the bear market in 2018 led many to assume that the cryptos’ practical applications and general usage are going to suffer as well. However, looking back at things now shows that nothing could be further from the truth.
The largest coins are currently seeing three times larger volume and transactions than they did at the start of the bear market, while the industry itself saw massive improvements in terms of network security and capacity.
Finally, the blockchain, cryptocurrencies’ underlying technology, evolved itself, providing more efficient ways to secure and handle digital assets. In other words, while the prices did go down — a lot — online trading did not, and neither did the quality of the technology. In fact, they grew, possibly because of the bear market.
One popular theory is that the decline in prices allowed developers to focus on what is truly important in the sector, which is technology. Without the prices and the element of earning to worry about, they brought out the best in this technology. Meanwhile, the Index has proven that it is a valuable source of information regarding the entire market, and those who can afford to take risks should certainly use it to their advantage.