Explanation of how this cryptocurrency could increase from a 100 million to a 1 billion market capitalization
The cryptocurrency market has recently undergone a significant price decline, with altcoins being hit the hardest and facing double-digit losses. Despite this, well-known crypto analysts believe that the asset class represents “a once in a few years” opportunity and are predicting a positive outcome.
This belief is rooted in the fact that certain cryptocurrencies may be undervalued in the current market while offering remarkable solutions despite the speculative volatility. Using capitalization as a benchmark can provide valuable insights into fundamental analyses and promising altcoins with notable competitive advantages. In this context, the market cap is a more suitable metric for this purpose than the cryptocurrency’s individual price, considering the drastic variations in supply.
In terms of undervaluation, fundamental analysis data indicates that the cryptocurrency Nano (XNO) could be undervalued at a market capitalization of around $100 million. Currently, Nano is trading at $0.86, with a fully circulating maximum supply of 133.24 million XNO and a market cap of $114.65 million.
Despite its relatively low market capitalization, Nano boasts strong fundamentals and competitive advantages, aligning with the vision of a peer-to-peer electronic cash system as originally outlined by Satoshi Nakamoto, the creator of Bitcoin (BTC). The coin’s distribution concluded in late 2017, resulting in a non-inflationary supply for the past seven years. As of now, the Nano network is the most cost-effective and fastest method for conducting peer-to-peer transactions due to the protocol’s lack of user fees and its ability to settle transactions within 0.5 seconds.
One notable milestone for the network is the confirmation of over 200 million blocks of XNO transactions, with a popular use case for the digital currency being the payment for AI tools like ChatGPT, Dall-E 3, and Claude 3 Opus.
The protocol continues to be actively developed by open-source contributors, with two node implementations working to increase code decentralization. Nano’s development activity score far exceeds that of many other cryptocurrencies with a higher market cap, indicating a high level of community engagement and development work.
Additionally, the Nano network boasts a high number of connected nodes relative to its market capitalization, with 1.44 nodes per $1 million of market cap. This demonstrates a strong level of network participation and support.
When considering the transaction volume as a fundamental metric, Nano also performs well. The cryptocurrency exhibits a proportionally high on-chain transaction volume, calculated to be an NVT ratio of 63, which is lower than those of Bitcoin and Ethereum, indicating a more efficient use of its market value.
While these metrics indicate that Nano may be undervalued based on its fundamental value to the cryptocurrency landscape, it is important to acknowledge that having good fundamentals and being undervalued does not guarantee the attraction of sufficient demand and capital. As the market dynamics can change rapidly, investors should approach low-cap cryptocurrencies like Nano with caution and carefully manage their positions.
Ultimately, the potential for Nano to reach a $1 billion market cap is influenced by the broader cryptocurrency market’s assessment of the coin’s core fundamentals and utility, recognizing its value and driving sufficient momentum to achieve this milestone. However, investors should be aware of the inherent risks associated with low-cap cryptocurrencies and hedge their positions accordingly.
