People often consider traditional indicators like market caps to decide which crypto platforms to invest in, with the higher market caps promising a stabler, and risk-free investment and the lower market caps providing high potential for growth and scalability. Tokens with larger market caps need not always be the best choice — parts of crypto can get locked up or lost leading to non-liquidity, and people could hold a large amount of coin and dump it all into the market in one go, leading to complete disarray.

This is why your crypto investment portfolio should include a few altcoins with a low market cap — they have immense potential to provide investors with huge returns even if they held the coin for a short time. Big names like Bitcoin tend to face huge price corrections, and often lose up to $10,000 in a single drop. This is hardly a risk with low cap investments where the only way to go is up.

Let’s take a look at three tokens and their platforms that show great potential to scale up and explode in the market.

Rangers Protocol

 Rangers Protocol is a unique platform that aims to create a high performance blockchain group with cross-chain contract interoperability among the EVM systems of multiple blockchains. They have already been backed by big names in the crypto space like MixMarvel, DODO, Pantera, Hashkey and Almeda Research.

It expands the NFT protocol to allow standardization for digital assets, allowing for lifecycle management, data reuse and data rights management. Unlike many of its contemporaries, Ranger Protocol supports multi-chain identity, crossing and consensus and enables DEFI standard protocol in addition to NFT. It makes way for composability and interoperability, and supports high concurrency applications, interactive applications and the reduction of handling fees. As an open-source Rangers Protocol provides an ecosystem with developer rewards, a friendly creator community with shared ecosystem and channels.

The protocol’s native utility token is called RPG — check out their IDO on Polkastarter which will happen on October 7th to know more.

Immutable X

Immutable X made headlines as Ethereum’s very first zero-knowledge rollup scaling protocol which enables NFT minting and trading without gas fees. It can achieve a rate of 9000+ TPS on Ethereum, while maintaining security with its non-custodial protocol. While it has an NFT standard protocol and provides standard SDKs, wallets and a browser, it is not compatible with the Ethereum EVM and does not support composability or interoperability.

The protocol’s native utility token is IMX, which charges a protocol fee of 20% on every Immutable X transaction. Tokens are rewarded on an ongoing basis to those who contribute to the growth of the protocol, like developers and traders.

Flow

Flow is a fast and developer-friendly decentralized blockchain that aims to support games, apps and digital assets. It has a multi-role architecture which allows the network to scale up to serve billions of users without sharding or giving up on decentralization. With resource-oriented programming and upgradeable smart contracts, Flow is designed for mainstream consumers and developers alike, with payment onramps enabling a safe and low-friction transfer to crypto from fiat sources.

The Flow network’s native currency is the FLOW token, with a low starting transaction fee at 0.001 FLOW, or 1 milli FLOW (mF). Additionally, there are processing fees and computation fees.

Let’s Compare Market Caps

Immutable X will have a fully diluted market cap of $300 million, making it a mid-cap token. FLOW, on the other hand, is a large-cap platform with a fully diluted market cap of $ 26 billion. Rangers Protocol is a micro-cap, with a fully diluted cap of $84 million, valued at $4 with a total circulation of 21 Million units.

In financial perspective Tokens with smaller market caps provide a much greater growth opportunity compared to large caps. Rangers Protocol, for instance, is a project with a lot of potential that will be realized very soon. With the limited number of tokens available for purchase, it is paramount that you are quick to catch these new assets before everyone else does. Since they are low in trading volume, it is easier to make profit — tokens like Ranger’s Protocol are a great way to diversify your investment portfolio, which should contain purchases from across the market cap spectrum.

It is also important to look at factors beyond just the market cap — if you take a look at the functions offered by these three platforms alone, you’ll get a picture of how a feature-packed system like Rangers Protocol is likelier to scale up and prosper compared to something like IMX — while it has its advantages, the IMX platform does not support interoperability.

Before you go ahead with your investment, make sure you do a detailed comparison of all your options and the use cases they offer.