Is a crypto project a microcap?

There is no consensus on this. Presently, crypto projects with a market capitalization below US$50 million are considered microcap cryptos. Volatility is a part and parcel of the cryptocurrency space. This means that a crypto may be a microcap today but not tomorrow. Not many people care that all crypto projects aim to add some new value.

Why are microcap Cryptos gaining traction in El Salvador?

Microcap cryptos are gaining traction and there is a reason for it. To this day, the true utility of any blockchain-powered project is unknown. Bitcoin, the most popular crypto and the biggest contributor to the cumulative US$2 trillion market cap of the cryptocurrency space, was lately made legal tender in El Salvador.

What are micro cap coins?

Micro Cap coins or tokens are unofficially defined as crypto currencies that have a market cap of less than $50 million. You could say that these alt coins are similar to penny stocks for a fairly accurate comparison. The fact that they have incredibly small market capitalizations, in comparison to larger cap coins, creates unique characteristics.

What is the cap for the major crypto index?

This means for the Major Crypto Index, we have established a cap so that no single cryptocurrency can constitute a weighting of greater than 40% of the index. While no individual constituent currently makes up more than 40% of the Emerging Crypto Index, we may establish a cap of 40% for this index should it become necessary at a future date.