SUB Spikes 400% In An Hour!

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10 Oct 2024

The Micro-Cap Dynamic
Trading Micro-Caps can be an exciting endeavor. It can also be a daunting experience. This is volatility at the highest level. Memecoins and micro-caps experience the most significant gains in this market. PolkaDEX is a Polkadot parachain I suggested as an altcoin pick fairly recently. Since then it has experienced some serious spikes of hundreds of percent, and as a result, provided some great trading opportunities.
Subsocial (SUB) is another parachain in the Polkadot ecosystem and has a market cap below $2 million. Yesterday, SUB spiked more than 100% and today spiked 400% within an hour. Now, micro-caps often experience this kind of volatility. Being so small, regarding market cap means that any change regarding trading behavior and volume can send the price into orbit.
It does not matter if the adjustment is minor regarding the dollar valuation, it can be significant regarding its market cap and trading volume. This is precisely why investors want to hold micro-caps when Altcoin Season is in full swing. Assets surge thousands of percent due to the influx of fresh capital being so significant, relative to the market cap and daily trading volume.
Trade While You Wait
It’s always a good idea to trade with a small portion of your holdings as you wait for altcoins to heat up. Random spikes that occur are great opportunities to sell and buy back lower. Setting orders well above the current price often pays off and enables investors to increase their holdings substantially while they wait. This morning is a perfect example of this idea. SUB rallied significantly, but only temporarily.

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There are times when there is no direct reason for the spike, and numerous individuals, or a whale decide to gain some exposure. On the other hand, some events directly influence the price action. This is the case regarding SUB. The 1M DOT Rewards is live on the next batch of parachains, including SUB. Providing liquidity for SUB is now highly lucrative.

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The APR kicked off a lot higher but when I saw it was 1300% which is an attractive yield, especially when it incorporates both DOT and SUB. Crypto enthusiasts need to know how to play these opportunities. Once the event ends, a dump is likely as many have purchased SUB intending to earn liquidity rewards. Once again, the market will afford another opportunity.
This time, to purchase SUB at a discount. Identifying a local top can make this a lucrative idea. Having an allocation of SUB set aside for trading enables such an approach. When looking to build a strong position in any altcoin, I always advocate having 5% to 20% liquid for trading such opportunities. Markets are always fluctuating, even within a range. It’s the natural order of things.

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Final Thoughts
Subsocial is currently the only SoFi project within the Polkadot ecosystem that functions as a true SoFi project by providing the monetization of content and engagement. When Polkadot heats up, the Layer1 effect will kick in and projects within the ecosystem will rally, similar to what was seen in the Solana ecosystem during 2023 and 2024. It has a good risk/reward ratio and is worth consideration. See you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.