Cryptocurrency trader Lark Davis is listing Ethereum and two altcoins among his top investment picks for 2022.
Davis tells his 475,000 YouTube subscribers that Ethereum and two altcoins will make “good returns for investors” next year.
In the case of Ethereum, the crypto trader and analyst says the second-largest digital asset by market cap could hit a five-figure price in 2022.
“I believe that Ethereum will be a five-digit asset, and we could see a $20,000 Ethereum before this cycle finally rolls over and dies.”
Ethereum is trading at $4,083 at the time of writing.
According to Davis, several catalysts are aiding the bullish case for Ethereum.
“We have layer-two scaling solutions exploding for Ethereum…We have the move to proof of stake coming for Ethereum. That’s massive beyond belief. We’re moving from proof of work, which is horrifically inefficient, over to proof of stake which will fundamentally change the economics for Ethereum…
Then we have the triple halving. So as part of the move to proof of stake, there will be a 90% reduction in yearly emissions of newly created Ethereum…
Ethereum is going to become deflationary next year. It’ll just only be going down. Within the next, probably five to ten years, we’ll be back under a 100 million Ethereum.”
The supply of Ethereum is currently 118.87 million.
Next up is Elrond (EGLD), a scalable blockchain platform suited for enterprises. The factors contributing to Davis’ bullishness on Elrond include growing activity on the blockchain platform helped by the launch of products such as the Maiar decentralized exchange (DEX), which is similar to Ethereum-based decentralized exchange Uniswap (UNI).
“It’s finally coming to life, which I think is a very exciting time and moment for Elrond. So we’ve finally seen them launch their Maiar exchange… kind of like the Uniswap of Elrond where you can now trade USDC (USD Coin), the Elrond token…
We also have exchange support from centralized exchanges starting to happen for Elrond’s standard tokens.”
Elrond is trading at $267.73 at the time of writing.
Next up is Polygon (MATIC), a scaling solution for Ethereum designed to allow for the widespread adoption of decentralized apps. Davis says that the factors making him bullish on Polygon include increased usage and growth-led acquisitions.
“Polygon now is going to burn a little bit of MATIC away. Long term that’s absolutely awesome for the price of Polygon. So users are going up, stronger than ever, new acquisitions and more apps coming. I’m bullish on Polygon. It’s going to $10, just a question of when.”
Polygon is trading at $2.61 at the time of writing.
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