Crypto mid-caps are currently facing challenges, resulting in diminished rewards and increased risks for investors. While some aim to find potential opportunities within these mid-tier assets, performance statistics reveal that mid-caps have been significantly more volatile without the expected rewards. The CoinDesk 20 index, representing the top digital assets, has risen by 320% since its inception in October 2022, while the CoinDesk 80 index, which includes mid-caps, has experienced a 3% decline. As the community tends to favor well-established and recognized cryptocurrencies, this large-cap focus could signal potential excess returns in digital asset investing. Determining the reasons behind mid-cap underperformance remains tricky, as size typically suggests better performance in asset classes, yet this is not translating in the crypto landscape. Investors may be inadvertently overlooking promising mid-caps due to their volatility and the instinct to prioritize large, well-known names.

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