Lark Davis Says Four Crypto Assets Are Serious Competition For Ethereum
According to a top cryptocurrency analyst and trader, Lark Davis, four crypto projects are a threat to the market cap of leading smart contract platform Ethereum.
Binance Smart Chain (BSC)
In a recent strategy session, Davis shares with his 419K YouTube followers that Binance Smart Chain (BSC) is one of Ethereum’s top competitors, as it is backed by global crypto exchange Binance.
“There’s lots of things happening on the Binance Smart Chain. $17.4 billion of total value locked over on the Binance Smart Chain right now. You can see also there’s been a pretty big explosion of applications on the Binance Smart Chain, so the biggest one, of course, Pancakeswap with $5.83 billion total value locked…
It’s got the users. It’s got the total value locked. Its daily number of transactions going crazy. It’s pretty easy to use. It’s no surprise you’ve seen so many people going over to BSC considering the integrations with the Binance main exchange as well as just being a pretty good user experience overall with cheap fees and fast transactions.”
Terra (LUNA)
The second asset Davis covers is decentralized finance payment network Terra (LUNA). Terra’s tokenomics could be favorable for the long-term value of LUNA, he points out.
“They’ve got some very interesting price mechanisms with their UST stablecoin, which burns the LUNA coin, which pushes the price up. We also have a major upgrade coming up with Columbus-5. We also have integration with Cosmos [ATOM] IBC, which essentially opens up Terra for more cross-chain compatibility.”
The Columbus-5 upgrade for Terra is expected to happen in the coming weeks and, it aims to introduce a number of projects leveraging the UST stablecoin.
The supply of $UST is at an all-time high. $LUNA is hitting new all-time highs.
Columbus-5 is ~22 days away.
A deluge of projects enveloping $UST and providing diverse sources of demand are ready to launch after Col-5.
Solana (SOL) is the third altcoin Davis says is a threat to Ethereum. Solana’s value is skyrocketing on the heels of its growing ecosystem, the analyst says.
“We have a lot of new applications coming to Solana, so there’s a lot of stuff in the pipes ready to come into this ecosystem. We have lots of new launches going on all the time. We have an increasing amount of adoption, I think, for this. We also have NFTs [non-fungible tokens], which are really starting to take off on Solana.”
Avalanche (AVAX)
The fourth and last crypto asset on the analyst’s list is Avalanche (AVAX), which is billed as the “Internet of Finance.” According to Davis, AVAX could be interesting, as it appears to be a relatively slow moving altcoin in the smart contracts space.
“We are seeing more projects coming out. We just had Benqi, which launched a couple of days ago. They’re doing a liquidity mining program right now, so if you’re looking for, if you feel like you kind of missed some of the bigger pumps with the other ecosystems, well maybe Avalanche is a more interesting one to look at because it hasn’t had the same level of price pump, and I say that after the coin is up like 80-90% or something this week. But that being said, the ecosystem hasn’t really taken off in any very significant way yet.”
