Crypto analyst Lark Davis highlights five cryptocurrencies he thinks will catch the eye in February. Different cryptocurrencies see various actions and developments that determine their fate in the industry. Here are the altcoin projects that Crypto YouTuber Lark Davis thinks have great potential this month. We have prepared the analyst’s posts for Kriptokoin.com readers.
Priority leading crypto Bitcoin (BTC)
Based on data from on-chain market intelligence firm Glassnode, Bitcoin balance on exchanges has now hit a three-year low. According to Lark Davis, this indicates increased uptake of the cryptocurrency for long-term hodling rather than panic selling. Cathie Wood’s Ark Invest is among the many crypto enthusiasts doomed to $1 million worth of BTC by 2030.
Additionally, according to the Bitcoin Archive, the Bitcoin-tuned dormancy stream historically shows strong bounces every time the digital asset hits a record low. Even more so, last week marks the second week of inflows ($19 million) into institutional crypto funds, after a persistent five-week decline. Bitcoin led gains after Multi-Asset-Funds with $22 million in inflows.
The first popular altcoin project Solana (SOL)
Solana is now working to address past performance issues with upgrades to be released in the next four to five weeks. Co-founder Anatoly Yakovenko emphasized that solving these hotspots is the current priority for developers and validators of the network.
According to reports, leading NFT marketplace OpenSea plans to support Solana’s NFTs. According to the analyst, Solana has one of the most robust NFT networks after Ethereum, with the advantage of relatively cheaper gas fees compared to the latter. The analyst states that OpenSea’s move will therefore bring great liquidity to the Solana NFT space.
Other ecosystem developments include the last $109 million raised by Solana-based Phantom wallet to expand its capabilities on the network. Leading US exchange Coinbase has for the first time listed Solana-based project tokens ORCA and FIDA, increasing network reach and liquidity for the entire ecosystem.
Other altcoin projects with potential, according to the analyst
BreederDAO
Lark Davis states that although the organization has not yet started trading the token, BreederDAO has great potential due to the use cases it offers. The platform optimizes NFT generation and increases access to in-game assets of play-to-earn NFT games.
BreederDAO plans to deliver on-chain expertise to such games as well as powering the digital economy. So far, the platform has provided over 100,000 NFTs and has more than 50 partners, including the famous Ethereum-based NFT game Axie Infinity. Its institutional backers include prominent venture capitalists Andreesen Horowitz and Delphi Digital.
Avalanche (AVAX)
According to the Messari crypto database, Avalanche processed an average of 475,000 transactions per day (about 40 percent of Ethereum) in Q4 2021. The network also saw the fastest growth rate in total value locked (TVL) over the same period, with +2.75 percent TVL dominance. According to the analyst, these reports point to rapid adoption of the network, especially by projects that are fee-sensitive or want to maintain EVM compliance.
Avalanche burned more than 700,000 AVAX tokens from transaction fees. The analyst notes that this is a plus for their deflationary capabilities.
Trader Joe (JOE)
Avalanche-based DeFi platform Trader Joe recently announced a tokenomic overhaul to reduce “farm and dump” activity on the platform.
Despite a drop of over 70% from its all-time high, Lark Davis considers Trader Joe’s largely undervalued as its 24-hour trading volume is almost equivalent to market cap.
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