The cryptocurrency community has recently started frequently discussing Web3’s Neobank concept. Investors pay close attention to projects with real-world applications, and this area is receiving significant interest.
Low-cap altcoins in the neobank narrative may be undervalued. These create new opportunities for investors.
What potential do neobanks have?
A neobank in Web3 refers to a fully digital bank that operates entirely on the blockchain. No physical branch required. It integrates DeFi features such as self-custody, yield-bearing accounts, and Visa/MasterCard cryptocurrency spending cards.
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Unlike traditional neobanks, Web3 Neobank emphasizes transparency, disintermediation, and cross-chain connectivity.
According to a report by Precedence Research, the global neobanking market reached $148.93 billion in 2024. It is projected to grow at a CAGR of 40.29% and reach $4,396.58 billion by 2034.
This significant growth potential could benefit Web3 neobanks. The first reason is the increasing adoption of stablecoin use cases. The second is a shift in investor mindset toward crypto projects with real-world utility rather than hype-driven valuations.
“If stablecoins power neobanks on-chain, the current Web2 identity infrastructure will not be able to keep up,” predicted investor Mike S.
Coingecko points out that the current market capitalization of the neobank category is $4.19 billion and consists of 13 major projects. Mantle takes the top spot with a market capitalization of $3.31 billion, followed by Ether.fi with $412 million.
Additionally, physical card transaction value from the Web3 neobank project reached a record high of over $379 million last month, according to data from Dune.
Although trading volumes remain low, analysts believe there is great potential for growth. Meanwhile, the connections between the Web3 project and traditional payment companies are becoming stronger and stronger.
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Crypto investors believe neobanks will boom thanks to AI agents and blockchain privacy. Some experts go further and predict that neobanks will be one of the key stories shaping crypto trends in 2026.
Can low-cap altcoins in the neobank sector deliver big returns for early investors?
Despite optimistic forecasts, Coingecko’s top three neobank projects, Mantle (MNT), ether.fi (ETHFI), and Plasma (XPL), all experienced prolonged price declines in November.
However, several low-value altcoins with market caps below $100 million have recently attracted new funding and performed well.
1.AVICI
Avici (AVICI) is a self-custodial cryptocurrency banking project built on Solana. It focuses on card payments and on-chain swaps. In the past two months, the market cap has increased tenfold to $77 million, pushing the price above $6.
Stalkchain reported that there has been a surge in AVICI purchases in recent days. One wallet is actively accumulating approximately $35,000 worth of AVICI at a rate of $266 per minute.
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The project announced that Avici Card achieved 100,000 transactions in November. The card explained that the card has become a daily habit and part of the users’ daily lives. Some investors expect AVICI to earn between $50 and $100.
2.Cypher (CYPR)
Cypher is a protocol built on top of Base Chain. Users can receive CYPR tokens as rewards for card-based transactions.
Cypher aims to build an open economic model that fosters growth between brands, service providers, online influencers, AI agents, and crypto card users.
The project’s market capitalization is currently less than $10 million. Analysts believe the stock is undervalued.
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Alea Research recently highlighted several reasons for this view. Cypher processes payments that are approximately twice its market capitalization. It also ranks second after EtherFi in terms of card transaction volume. Low liquidity and limited listing on major CEXs prevent significant price appreciation.
3. MACHINES
Machines-cash (MACHINES) is a newly launched crypto payment platform focused on privacy on Base. The current market capitalization is less than $5 million.
Analysts believe the project has the potential to attract similar capital inflows to AVICI and achieve a 10x increase. Several reasons support this view. The development team includes people with experience at MetaMask, Trust Wallet, DARPA, Flipside Crypto, Paxful, and Polygon. Advisors from AVICI are also participating in the project.
Machines-Cash allows you to make anonymous and secure Visa card payments. Users can trade using alias accounts that hide their wallet addresses, transaction history, and personal identification. This feature is especially appealing as privacy concerns continue to grow.
Market sentiment remains gloomy, which will have a significant impact on the potential for low-cost projects. Moreover, as more crypto neobanks emerge, choosing truly high-quality projects is becoming increasingly difficult.
Jay Yu, a researcher at Pantera Capital, believes the winners in this emerging market will be determined by retention, card transaction volume, and number of users.
