- Ethereum DeFi token with a market cap of less than $200 million could rise up to 100 times, according to Lark Davis.
- According to the YouTuber, the lending protocol Aave has the strongest fundamentals in the DeFi sector.
Crypto trader and influencer Lark Davis has released another video for investors looking to make “real gains.” Davis believes that the alt season has started already a year ago when tokens like AAVE, LINK, and other “blue chips” outperformed Bitcoin.
However, the altcoin market still offers quite a bit of potential. According to Davis, investors who want to make 100x gains need to find coins with a market cap between 100 million and 200 million. In other words, they need to find them before they reach “blue chip” status. Therefore, Davis advised investors to “stop paying attention” to Coinbase and start looking for coins on MetaMask or on the decentralized exchange Uniswap.
There, traders can find cryptocurrencies like THORchain, REN, Loopring, Curve, Kyber Network, KeeperDAO which are in the mid-cap range. In terms of price potential, Davis stated that these coins are in “the sweet spot” with the best return-risk. They are in the 100 and 200 million market cap range and therefore offer the best opportunities, with moderate risk.
Because of their market capitalization and the size of these projects, the influencer believes they will yield big returns as their user base begins to expand and as they develop their products. Furthermore, Davis said:
The hardest thing about these coins is buying them (…). Some of these promising DeFi coins have had 100% gains in a week (…). At the same time, sometimes we’re in a market season where we’re coins just keep going up.
Among the cryptocurrencies with higher risk, but higher return potential are Ramp DeFi, BadgerDAO, Barnbridge protocol, UniLand, APY Finance, according to Davis. The influencer believes investors should take additional risk management measures with these projects to protect their investment:
Just because a currency goes up today, doesn’t mean it will continue to be relevant. That’s why you also need to be careful.
Ethereum DeFi is the safe investment option
Despite the above, Davis believes that DeFi tokens with high market capitalization will still offer great returns to investors. AAVE is one of the “safest bets” in the DeFi ecosystem with some of the best fundamentals that Davis sees as ideal when looking for projects that will offer good investment returns:
Look for that strong economic token model, which Aave has. Look for original ideas and powerful technology, which Aave has. Look for a strong team, which Aave has. Look for good total value locked. It’s one of the top leaders. Understand if the model is sustainable. They’ve got a pretty simple business model.
Aave started to gain more traction after the change in its governance model in mid-2020. By migrating its LEND token to the AAVE token, the protocol focused on incentivizing community participation, innovating with its products, and consolidating partnerships with other major players in the crypto industry. Aave’s motto is deposit, earn, control, innovate.
Although Aave didn’t launch until early 2020, its Total Value Locked (TVL) ranks second in the Ethereum DeFi ecosystem, behind only MakerDAO, accounting for $3.55 billion, just over 10% of the $24.9 billion DeFi market.