The low-market-cap cryptocurrency craze is changing investors' fortunes overnight.

Some low-cap tokens have surged on the August cryptocurrency leaderboard, surprising investors and delighting traders looking for opportunities.

In some cases, recording returns exceeding 2000%, tokens like TROLL, MEMEFI, and MYX have transformed small investments into millions of dollars. However, amid this excitement, many are conflicted about whether this is the beginning of a revolution or a well-crafted illusion.

Soaring Altcoins... Dissecting the Low Market Cap Coin Trend

A notable star is MYX, which surged 1957% in just a few days, briefly exceeding a market cap of $200 million and peaking above $2. Some welcomed this as the next breakthrough altcoin, but analysts quickly pointed out suspicious trading patterns and abnormally adjusted market activities.

BeInCrypto explored the possibility that MYX's surge is a well-planned trap based on strategic volume pumping and artificial liquidity injection rather than natural high interest.

"...like a gambler's paradise, trying to catch big fish, be cautious of risks," a famous on-chain analyst warned.

Critics warn that such parabolic surges often end in harsh corrections when fundamental factors and transparency are lacking.

Meanwhile, another low-cap competitor, MEMEFI, surprised the market by nearly 200% surge after the Binance futures delisting announcement.

Far from a sign of confidence, the price surge was triggered by forced short liquidations as short sellers struggled to cover their positions.

Many traders viewed this as a mechanical surge not driven by actual demand. MEMEFI remains over 80% down from its all-time high, with ongoing concerns about sustainability and legitimacy due to limited communication from the development team.

And then there's TROLL. A Solana-based meme token that recently surged 210% to an all-time high. One trader reportedly turned $22,800 into $2.48 million, with others seeing 1000x returns.

However, despite these success stories, experts warn that meme-driven surges often disappear quickly.

Binance Effect, Market Cap Sweet Spot

Cryptocurrency trend analyst Ape highlights two main catalysts: Binance futures listing and market caps under $150 million.

According to his analysis, tokens in the $20-60 million range, especially those supported by derivatives on the Binance exchange, are prime targets for momentum traders and market makers seeking quick profits.

"Post-listing mass selling and stagnant charts are actually bullish setups... with the right narrative or liquidity engine, it induces accumulation and triggers a rebound," Ape wrote.

Retail and institutional traders use tools like SoSoValue to find potential low-cap gems before the crowd arrives. However, this new strategy carries high risks.

BeInCrypto reported that many altcoins outside the top 300 have surprisingly high open interest relative to market cap, indicating extreme volatility and potential manipulation.

"From top 300, open interest becomes disproportionately high compared to market cap — a strong risk signal. What does this mean? These altcoins will eventually liquidate 90% of traders, long or short. It's also much harder to analyze consistently," analyst Joao Wedson explained.

Nevertheless, the money being made is real. Long-forgotten TROLL wallets now show returns from 6000x to 1300x, recording millions in unrealized profits.

Some of these are traders who haven't touched their cryptocurrency wallets for months.

The August low-cap surge has provided life-changing returns for some lucky individuals. However, analysts are divided on whether this marks the beginning of capital rotation into small-caps or if investors are dancing in a digital minefield.