A Tiny Micro-Cap Within The Polkadot Ecosystem

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4 Jul 2024

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Gem Hunting
On a personal note, regular readers would have noticed that I have not published much content over the past few weeks. My father passed away so my heart and attention have been elsewhere. However, life must now continue and I am hoping to publish a fair amount of content over the next while. If anything, to keep my mind engaged and busy. A project that has managed to recapture my attention is a DEX within the Polkadot ecosystem.
The market has severely punished this tiny micro-cap and is within an acceptable and attractive range for fresh accumulation. Polkadex is one of the earlier Polkadot DEXs and if it were not a Polkadot-based project I would likely overlook it. However, as mentioned in numerous articles, I expect Polkadot and its ecosystem to perform exceptionally well over the next couple of years.

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Polkadex (PDEX) is currently showing signs of a bottoming formation. For example, note the increase in volume that has been unfolding almost unnoticed. PDEX once traded as high as $38, making the risk/reward ratio extremely attractive. The fact that PDEX is currently trading at $0.22 makes it a no-brainer. Not only is PDEX in a great accumulation zone, but it also has another positive dynamic.

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Polkadex is a Polkadot parachain and is a Proof-of-Stake protocol running at approximately 24% APR. Even if PDEX were only to regain a dollar valuation, it would significantly impact your staking rewards. In relation to your initial investment in dollar terms, your staking reward return ratio would now be running at approximately 100% per year. However, micro-caps are known to explode once the market is in an accelerated bull market.
This could see PDEX move significantly higher than a dollar. The PDEX market cap is below $2 million, which is nothing. Remember, a micro-cap with even a market cap valuation of $20 million is considered nothing. Being a DEX within the Polkadot ecosystem gives it even stronger odds of producing stellar returns over the next year or two. I am always in search of Proof-of-Stake micro-caps.
Choosing future winners in this particular sector can be extremely lucrative, especially if there is an extended period of accumulation at discounted prices. Regarding price, we are currently in a discounted zone. Bitcoin is under strain and as a result, altcoins, memecoins, and micro-caps are getting hammered. When it comes to staking PDEX, Nova Wallet is a great option. It’s the most user-friendly and efficient Polkadot wallet in existence.

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Final Thoughts
It’s always important to take into consideration the layer 1 effect. When Polkadot begins to take off, projects within its ecosystem, especially DEXs, are likely to skyrocket. These are my views regarding the market. Please conduct your own research before making any investment decisions. Altcoins and micro-caps are incredibly risky and should be handled as such. All the best, 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.