Crypto trader Lark Davis is bullish on a number of “blue-chip” Altecoins built on Ethereum.
The analyst says he highlights projects that will last for the long term, with well-established track records and good cash flow.
“These so-called DeFi blue chips (decentralized finance) could also be some of the best holds during the bull run when it comes to actually making higher profits, while being relatively safer in the market compared to many cryptocurrencies with smaller market capitalization may bring higher profits, but is also a higher risk. ”
The analyst’s first choice is the Aave Credit and Credit Protocol (AAVE), which he believes is already worth nearly $ 3 billion in total on the platform and is likely to get a lot bigger.
“This is just the beginning for Aave as the technology behind Aave actually addresses a multi-trillion dollar market. However, Aave goes way beyond simple loan and credit services. It is also the pioneer in terms of technology like flash loans. A credit delegation has recently been introduced. There are many more things in the pipeline. Aave is even working to break into the mortgage market, where tokenized mortgages can be used as collateral for loans. “
The second asset Davis is bullish on is Uniswap (UNI). Davis notes that the decentralized exchange has a higher volume than Coinbase on a few days and was instrumental in allowing projects to launch their tokens without the gatekeeping associated with launching on centralized exchanges.
Next on Davis’ list is Synthetix (SNX) derivatives liquidity protocol, which targets the multi-trillion dollar derivatives market. Davis notes that a number of new projects use the Synthetix protocol and expects it to remain a leader in this area for the foreseeable future with the project’s upcoming upgrades.
The fourth altcoin Davis mentions is Andre Cronje’s yearn.finance (YFI) decentralized financial platform, which is evolving into a multi-purpose credit and insurance platform that allows token holders to receive a portion of the fees charged on the platform.
“The YFI governance token is known to be ridiculously expensive, but token holders receive a percentage of the fees paid to the platform. Now it’s too early to say how lucrative holding the YFI tokens will be in the long run, but the market is currently assuming that they will be worth a lot and that the cash flow will be substantial. “
Davis’ fifth pick is liquidity provider Kyber Network (KNC), which Davis says “helps connect the dots in DeFi”. Davis notes that Kyber owners get some of the fees charged on the platform, but warns that you have to own a lot of KNC for the feature to be worth it. However, according to Davis, the token has a diminishing supply, which makes for great tokenomics.
Finally, Davis names Maker (MKR) as his sixth choice, referring to it as the “OG of DeFi Protocols”. According to Davis, Maker is the number one DeFi record in terms of total banned value. With many new features in the pipeline, Davis believes the asset could do well this cycle.
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Featured image: Shutterstock / Muhammad Shairazi