Ripping In A Bleeding Market
Manta Network has been on a tear of late. I mean, how many projects have been in the green over the past 7 days? MANTA has also been trending on CoinGecko for some time now. The project has now entered into the Top 100 Crypto projects, according to market cap, and is currently ranked 82 at the time of writing. With a market cap now closing in on the billion-dollar valuation mark, MANTA seems to be making its mark.
Regular readers will most likely be aware of my investment approaches… they are not standard and often incorporate the layer 1 effect and other knock-on effect strategies. Manta Network is another one of these strategic plays. A project that I have mentioned and given subtle hints regarding, is Calamari. Not only is Calamari a Polkadot project, but it’s also the canary network of the Manta Network.
Calamari (KMA) has rallied as high as 1250% since its bear market lows and is one of the Polkadot projects I mentioned in an article published on the 15th of January. Many of these Polkadot micro-caps have rallied completely unnoticed. Yes, there are now influencers talking about projects like Picasso. However, where were they when PICA was trading at $0.001? Especially considering, it recently traded as high as $0.028. I will say it again…
These guys are “news reporters” and nothing more. They have very little to offer Crypto investors in search of alpha.
This is however true regarding much of the Crypto space. There are very few influencers I pay any attention to. Most of it is regurgitated noise. Just as with your natural diet, one has to monitor what they consume regarding news, information, and data. As I mentioned some time ago, Calamari is a project I am focusing on for numerous reasons. One is the fact that it’s Manta’s canary network.
Secondly, KMA offers a rather lucrative staking reward, so a fair amount of risk can be mitigated by compounding staking rewards. Considering that it is a micro-cap with solid connections, it is however likely to perform relatively well. Yesterday, I published an article addressing my staking goals, and what I am looking to accomplish in the next 6 months. Time is running out, so I try to make the best use of market corrections.
Another very important reason is that KMA is now enduring a significant amount of downward price action. This is largely due to it being a micro-cap with a market cap of approximately $15 million. When it comes to market corrections, micro-caps are often dealt the harshest hand. This has nothing to do with the inherent nature of the project, but rather that investors are quick to drop smaller projects, regardless of their importance, utility, and future relevance.
Essentially, this means that I expect KMA to rally once again, after a bullish reversal. That being said, I have been in accumulation for a while and am currently trading a few stacks, to try and increase them substantially over the next 6 months. At the end of the day, Calamari should have a type of correlation to Manta, in a similar way that Kusama experiences a correlation to Polkadot.
This is more a case of a weighted valuation based on its use case, rather than a direct correlation in terms of price action. In my opinion, KMA is currently undervalued and is likely to perform phenomenally well, once the market recovers and Bitcoin pushes above $50K. Once again, this is a move made in anticipation of a particular outcome, based on several factors that are likely to act as bullish catalysts.
Final Thoughts
When a project offers a rather significant staking reward, I am more open to gaining exposure, even if the project in question is somewhat small, in terms of market cap. When you consider that Calamari is also the canary network for a project currently experiencing a significant amount of attention, the risk profile drops considerably, at least in my opinion. Furthermore, Manta Network has only just commenced trading.
There could well be some rather impressive moves awaiting MANTA in the not-too-distant future. Anyway, I am keen to build a KMA stack over the next few months, and eagerly await the final quarter of 2024 to begin harvesting staking rewards. However, for now, I trade my stack up. Always remember to conduct research before any investment decision. These are merely my views. See you in the next one!
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.
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