Crypto trader and influencer Lark Davis is revealing his strategies on how to find altcoins that have the potential to generate 100x returns.
In a new video, Davis says one approach to finding the next big thing is to check out decentralized finance (DeFi) protocols running on blockchains other than Ethereum (ETH).
“Right now, DeFi is struggling on Ethereum. The average user, you have pay so much in gas fees… The high fees are creating a big opportunity for DeFi on other chains right now. For example, Cosmos (ATOM) SDK-based DeFi is probably one of the most underrated things happening right now in crypto.
We have things like KAVA and HARD Protocol (HARD), and Injective Protocol (INJ)… They’re out there chasing those smaller fees… You can pay a fraction of the fees that you’ll end up paying on Ethereum.”
Davis adds that he’s particularly keeping a close watch on DeFi coming to Polkadot (DOT), as he believes coins on the interoperability protocol have a lot of upside potential.
“Think about this. There is not a single Polkadot DeFi protocol in the top 100 right now. The highest market cap at this point for Polkadot DeFi coins is like $120 million for Polkastarter (POLS).
The highest market cap DeFi coin on Ethereum? It’s around $6 billion, meaning that if any of these DeFi protocols coming to Polkadot can reach similar levels in the future, it’s a 60x gain for the most expensive current Polkadot-based DeFi protocol.”
The crypto influencer is also looking at layer-two scaling solutions for Ethereum to find that next big gainer. He says blockchain scalability protocol Matic Network (MATIC) is a clear leader in the space as the protocol already has a working product and a growing ecosystem.
“Matic and the solutions built on it could be a good area to watch.”
The last space that Davis is keeping an eye on is token sales. He says the number of investors participating in token sales is relatively low.
“Token sales are making big returns for investors. Just this year, there have probably been a dozen token sales that did a 50x or more. That happened. That’s insane. A couple has even done 100x.”
The crypto influencer says he’s looking at the token sale of Umbrella, which stands out from the sea of oracles as it is a layer-two oracle solution.
“They can provide data that other oracles simply can’t or for prices that other oracles simply can’t compete with, which makes it very, very interesting.”
Another token sale on Davis’ radar is DAO Ventures, a DeFi robo advisor and automated money manager that will run on Polkadot and Ethereum (ETH).
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/IM_VISUALS