Low Market Cap Tokens are gaining momentum as May 2025 begins, with Dragonchain (DRGN), ZORA, and Housecoin (HOUSE) leading the way. DRGN surged 115% after the SEC dropped its lawsuit, reigniting interest in the project.
ZORA gained traction after its Coinbase listing, riding the viral Content Coins trend. Meanwhile, HOUSE exploded over 250% in 24 hours.
Dragonchain (DRGN)
Dragonchain (DRGN) is a hybrid blockchain platform built for businesses, enterprises, and developers. It was originally developed inside The Walt Disney Company in 2014.
After becoming independent, the project launched the DRGN token, which briefly hit a $1.3 billion market cap in early 2018. However, a SEC lawsuit in 2022 saw the token’s market cap fall below $20 million.
If momentum holds, DRGN could soon test resistance at $0.090 and $0.107, possibly breaking above $0.11 for the first time since 2021.
However, DRGN may correct back toward $0.044 if buying pressure weakens.
A deeper drop could push the token toward $0.035 or even $0.031. For now, optimism has returned to one of the earliest enterprise blockchain platforms.
ZORA
ZORA is the native token of the Zora platform, a marketplace built around tokenizing digital content. It launched on April 23 through an airdrop and was immediately listed on several major exchanges, including Binance Alpha, Bybit, and KuCoin.
ZORA gained even more momentum after Coinbase officially listed it with an “Experimental” label, warning users about potential volatility. With a market cap close to $46 million, it’s currently one of the most interesting Low-Market-Cap Tokens to watch.
The platform is based on Base chain, Coinbase’s Layer-2 network, and supports the rising “Content Coins” trend — where users mint digital content like memes, images, and posts as tradable tokens.
ZORA recently tested and held support at $0.016, showing resilience after its volatile launch. If the uptrend continues, the token could test resistance at $0.0198, potentially moving toward $0.023 and $0.027.
ZORA could climb further to challenge the $0.034 mark if the broader Content Coins narrative gains traction. It remains one of the early leaders in this emerging sector.
Housecoin (HOUSE)
Housecoin is a new Solana token launched on Pumpfun, built around the idea of letting users “hedge against the housing market.” It has quickly gained attention, reaching a market cap of around $48 million.
HOUSE recently crossed above $0.050 for the first time, setting a new all-time high.
Over the last 24 hours alone, the token has surged by more than 250%, highlighting the growing hype around new meme and niche sector tokens on Solana.
If the strong momentum continues, HOUSE could soon test resistance around $0.058, and a breakout could push it above $0.060 and even $0.070 for the first time.
However, if the trend reverses, HOUSE could return toward support at $0.0189. If that level fails to hold, deeper drops toward $0.0124, $0.008, and even $0.0069 could follow.
As the second quarter closed yesterday, XRP’s on-chain activity flashed a bearish signal for holders. The token saw a sharp uptick in the movement of dormant tokens, a trend that signals one thing: distribution.
When long-held coins suddenly become active, it suggests that long-term holders (LTHs) are offloading their assets, possibly in anticipation of downside risks. The question now is whether these holders foresee further declines as Q3 begins.
Dormant XRP Tokens Wake Up — Is a Sell-Off Incoming?
According to on-chain data provider Santiment, XRP’s Dormant Circulation (90 days) metric surged to 387.19 million on Monday, the highest level in three weeks.
This metric tracks the total volume of tokens that had previously remained inactive for at least 90 days but suddenly moved within a 24-hour period. Such a sharp increase signals that LTHs are moving their tokens.
Historically, spikes in dormant circulation have indicated seasoned holders exiting positions, either to take profit or avoid potential losses. This trend therefore puts XRP at risk of noting declines.
Further, after a steady decline that began on June 5, XRP’s Liveliness suddenly reversed course yesterday, climbing to 0.809.
Liveliness measures the movement of long-held tokens by calculating the ratio of coin days destroyed to the total coin days accumulated. When it declines, it indicates that LTHs are moving their assets off exchanges and opting to hold.
Converesly, when it climbs, it suggests that more dormant tokens are being moved or sold, signaling profit-taking by XRP LTHs.
XRP Faces Bearish Pressure as Sellers Take Control
On the daily chart, XRP’s negative Balance of Power (BoP) supports this bearish outlook. At press time, this momentum indicator is at -0.62.
The BoP indicator measures the strength between buyers and sellers by comparing price movements within a given period. When it turns negative, sellers are dominating the market, hinting at a potential downtrend.
Since its launch in late March, World Liberty Financial’s stablecoin USD1 has achieved an impressive market capitalization, reflecting strong investor interest. If the creators want to maximize USD1’s reach by accessing markets abroad, particularly in Europe, they must confront MiCA’s extensive compliance list.
In a BeInCrypto interview, experts from Foresight Ventures, Kaiko, and Brickken stressed the importance of stablecoin issuers having substantial European bank reserves, operational volume caps protecting the euro, and transparent USD1 information to ensure transparency and avoid conflicts of interest.
USD1’s Search for Dollar Dominance
World Liberty Financial (WLF), a decentralized finance (DeFi) project heavily associated with the Trump family, officially launched USD1 a month ago. Through this stablecoin, WLF aims to promote dollar dominance worldwide.
So far, this initiative has been working well for WLF. According to CoinGecko, USD1 has now surpassed a market capitalization of $128 million and reached a 24-hour trading volume of nearly $41.6 million. The project has already released 100% of its total supply of 127,971,165 tokens.
USD1’s market capitalization over the past 24 hours. Source: CoinGecko.
For WLF to seriously establish dollar dominance across the globe, it will have to move fast and efficiently. This urgency stems from the need to surpass its main competitors, USDT and USDC. These rivals currently hold a massive market share advantage.
Additionally, there’s a need to maintain a competitive advantage against established currencies like the euro.
USD1 needs to access foreign markets and stand out from established competitors to achieve this. Should Europe become a primary target, USD1 must prepare to tackle numerous challenges head-on.
The EU’s Stringent Compliance Demands
The European Union (EU) became the first jurisdiction in the world to establish a comprehensive regulatory framework for digital assets across its 27 member states. This regulation, known as Markets in Crypto-Assets (MiCA), has been in effect for nearly four months. Through this legislation, the EU has confirmed how seriously it takes compliance with a defined regulatory regime.
The regulation is detailed and clear, leaving no room for interpretation. If USD1 wants to operate in this crypto market of 31 million users, it must ensure it meets every demand.
US Senators Flag Risks of Presidential Involvement in USD1
In the letter, the group asked both agencies to clarify how they plan to uphold regulatory integrity following the issuance of USD1.
The Senators cautioned that letting a president personally benefit from a digital currency overseen by federal agencies he has sway over is a big risk to the financial system. They argued that an unprecedented situation like this one could hurt people’s trust in how regulations are made.
“The launch of a stablecoin directly tied to a sitting President who stands to benefit financially from the stablecoin’s success presents unprecedented risks to our financial system,” they argued.
The letter further detailed situations where Trump could directly or indirectly affect decisions regarding USD1.
As things stand, USD1 isn’t well-prepared to follow MiCA’s strict reporting and transparency rules.
How Do Concerns Over USD1 Impact MiCA Acquisition?
According to Ianeva-Aubert, if USD1 doesn’t clear up doubts over potential conflicts of interest, this would affect its ability to apply for an operating license in the European Union.
“MiCA requires strong governance, including independent directors and clear separation between owners and managers. Issuers must have clear rules to handle conflicts of interest. If USD1 has any conflicts, this could make it harder to comply,” she said.
Ianeva-Aubert also highlighted that WLF still hasn’t released enough public information on USD1 to assess the degree of its compliance effectively. In particular, the stablecoin issuer has not disclosed the measures it would take to safeguard against market manipulation.
As of now, USD1 would likely fail MiCA’s transparency tests. However, industry experts pointed out other parts of the framework that might be even larger obstacles for USD1 to operate across the European Union.
Impact of the EU’s Reserve Mandate on USD1
When asked about the biggest regulatory hurdles USD1 would face in securing a MiCA license, experts’ responses were unanimous. The stablecoin would need to store a large portion of its reserves in a European bank.
This mandate has proven difficult for established stablecoin issuers seeking operations across the region.
This regulation aims to ensure seamless accessibility for European crypto users and traders. For Forest Bai, Co-founder of Foresight Ventures, USD1 could capitalize on this opportunity during the early stages of its development. By doing so, it could avoid some of the obstacles its competitors had to endure.
Yet, even as USD1 scales and its demand grows, other mandatory requirements could restrict its scope of success.
MiCA’s Transaction Volume Caps to Preserve Euro Dominance
As part of the MiCA regulation, the European Union has taken specific measures to safeguard the euro’s dominance. If a digital currency not denominated in euros were to become extensively adopted for daily payments within Europe, it could present a potential risk to the European Union’s financial sovereignty and the stability of the euro.
To contain this possibility, MiCA places volume caps on transactions used as a means of exchange within the EU.
In other words, MiCA establishes predefined limits on the transactional volume of such currencies. The EU initiates regulatory measures when these limits are exceeded due to widespread payment usage.
Specifically, USD1 issuers must suspend any further digital currency issuance and provide a remediation plan to the relevant regulator, outlining steps to ensure their usage does not negatively impact the euro.
If USD1 wants to work in places where it can experience uninhibited growth, the European market might not be the best fit for this stablecoin. Other parts of MiCA also suggest this could be the case.
MiCA Limitations to Stablecoins as Investment Vehicles
EU regulators have been clear that stablecoins, or e-money tokens (EMTs), as the regulation refers to them, are payment instruments that should not be confused with investment vehicles. The MiCA framework has a few rules in place to prevent this.
Given the circumstances, experts like Bai think WLF might want to focus on countries with better market conditions for stablecoin issuers.
Should WLF Consider the EU Market for USD1 Operations?
While the European Union has an undeniable crypto market presence, other jurisdictions have an even larger footprint.
”The EU’s crypto market remains comparatively small, with just 31 million users versus Asia’s 263 million and North America’s 38 million users, according to a report from Euronews. This limited market size may not justify MiCA compliance costs for projects, like WLFI,” Bai told BeInCrypto, adding that “Projects ultimately determine their own growth strategy. Given that, currently, the EU represents a secondary market for USD1, the project’s strategic priorities may naturally shift toward regions with less stringent stablecoin regulations to drive its adoption.”
These circumstances alone may prompt USD1 to reconsider its options.
In fact, USD1 could start by gaining a competitive edge right at home.
USD1’s Political Backing at Home
With a crypto-friendly president in office –whose very crypto project officially announced the launch of USD1– the stablecoin has sufficient backing to make its mark.
Looking past the immediate future, Bai underlined that if the US doesn’t keep developing supportive crypto regulations, USD1’s growth in the country could be held back following a government shift.
Given this reality, USD1’s failure to comply with the EU’s regulations, should it ever even consider applying for a MiCA license in the first place, could have negative consequences for the project’s long-term viability.
Regardless of the markets WLF evaluates in its efforts to increase the reach of USD1, compliance with general stipulations concerning transparency, legal architecture, and real-time transaction oversight could be conducive to its eventual success.
