- Crypto analysts Lark Davis has highlighted some five cryptocurrencies he thinks will take the spotlight this February.
- The digital assets exude high ecosystem developments, promising on-chain metrics, and strong institutional backing.
Different cryptocurrencies are seeing varying actions and developments that spell their fate in the industry. Here are five cryptocurrencies that Crypto YouTuber Lark Davis thinks to hold great potential this month.
Bitcoin (BTC)
Based on data from on-chain market intelligence firm Glassnode, Bitcoin balance on exchanges has now hit a three-year low. This, according to Davis, indicates heightened purchasing of the cryptocurrency for long-term hodling rather than panic selling. Cathie Wood’s Ark Invest is one among many crypto enthusiasts with the conviction of a $1 million BTC value by 2030.
Additionally, according to Bitcoin Archive, the Bitcoin adjusted dormancy flow shows historically strong bounce ups every time the digital asset has hit a record low.
Even more, last week marks the second week of inflows ($19 million) to institutional crypto funds after a persistent five-week drain. Bitcoin led the gains after Multi-asset funds, with inflows worth $22 million.
Solana (SOL)
Solana is now working on solving its past performance issues with upgrades launching in the next four to five weeks. Co-founder Anatoly Yakovenko has stressed that solving these pain points is the current priority for the network’s developers and validators.
Reportedly, leading NFT marketplace OpenSea has plans to support Solana’s NFTs. Solana has one of the most robust NFT networks after Ethereum, with the advantage of relatively cheaper gas fees compared to the latter. The move by OpenSea will therefore bring massive liquidity to the Solana NFT space.
Other ecosystem developments include the recent $109 million raised by Solana-based Phantom wallet to expand its capabilities on the network. Leading US exchange Coinbase has also, for the first time, listed Solana-based project tokens ORCA and FIDA – increasing network access and also liquidity for the whole ecosystem.
More cryptocurrencies on the watchlist
BreederDAO
Though the organization’s token is yet to start trading, BreederDAO has great potential due to the use cases it presents, Davis notes. The platform optimizes NFT production and increases access to the in-game assets of play-to-earn NFT games. BreederDAO also plans to offer on-chain expertise to such games, alongside empowering the digital economy. So far, the platform has supplied over 100,000 NFTs and it has over 50 partners, including the famous Ethereum-based NFT game Axie Infinity. Among its institutional backers are lead venture capitalists Andreesen Horowitz and Delphi Digital.
Avalanche (AVAX)
In Q4, 2021, Avalanche averaged 475K transactions daily (about 40 percent of Ethereum’s), according to crypto database Messari. The network also saw the fastest rate of growth in total value locked (TVL) over the same period, with +2.75 percent TVL dominance. These reports point to the rapid adoption of the network, especially by projects that are fee-sensitive or that want to maintain EVM compatibility.
Avalanche has now burned over 700,000 AVAX tokens from transaction fees – a plus for its deflationary capabilities.
Trader Joe (JOE)
Avalanche-based DeFi platform Trader Joe recently announced a tokenomics overhaul, to reduce “farm and dump” activities on the platform. And despite being over 70 percent down from its all-time high, Davis thinks Trader Joe is massively undervalued since its 24h trading volume is almost equivalent to its market cap.
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