In one video In a new analysis, analyst Lark Davis says that ETH and two altcoins will provide “good returns for investors” next year.
In the case of ETH, the analyst and trader says the second-largest digital asset by market capitalization could hit a five-figure price by 2022.
“I believe ETH will be a five-digit asset and we could see ETH hit $20,000 before this cycle ends.”
ETH is trading at $4,067 at press time.
According to Davis, several catalysts are supporting the bullish case for ETH.
“We have exploding layer 2 scaling solutions for ETH… The network will move from PoW to PoS. It is beyond imagination. Very inefficient PoW will be replaced by PoS – fundamentally changing the economy for Ethereum…
Then there’s the triple halving. So as part of the move to PoS, the yearly new ETH issuance is down by 90%…
ETH will become a deflationary asset next year. Within the next 5 to 10 years, the supply will be back under 100 million ETH.”
ETH supply is currently 118.87 million.
Next up is Elrond (EGLD), a scalable blockchain platform suitable for businesses. The basis for Davis’ bullish prediction for EGLD is the growing activity on this blockchain platform thanks to the launch of products such as the decentralized exchange (DEX) Maiar, which is similar to the Uniswap DEX on Ethereum.
“It’s finally come, I think it’s been a very exciting time and moment for EGLD. They finally launched the Maiar exchange… which is the version of Uniswap on Elrond. Users can now trade USDC (USD Coin), EGLD tokens…
In addition, centralized exchanges are also starting to support Elrond’s standard token.”
EGLD is trading at $256.83 at press time.
Next up is Polygon (MATIC), a scaling solution for Ethereum designed to enable widespread adoption of decentralized applications. Davis says that the factors that make him optimistic for MATIC are increased usage and acquisitions that lead to growth.
“Polygon is burning some MATIC. In the long run, that’s absolutely fantastic for the price. So users are growing, stronger than ever, new conversions and more apps coming. I am optimistic about MATIC. It’s going to go up to $10, it’s just a matter of time.”
MATIC is trading at $2.51 at press time.
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According to Dailyhodl