Ethereum, Terra, And Three Other Altcoins To Explode In August 2021, According To Analyst Lark Davis
Closely-followed crypto strategist Lark Davis names the top 5 altcoins that are deemed to get heat up with big gains for the month of August.
Davis kicks off his list with Ethereum (ETH) as Ethereum’s London hard fork is expected to launch on 4th August. The protocol update includes five Ethereum Improvement Proposals (EIPs), most notably EIP 1559 and EIP 3554.
“Many Ethereum enthusiasts are excited for the delayed release, while some are watching on with cautious optimism,” the trader says.
EIP 1559 introduces a new fee structure to make Ethereum less inflationary. This protocol change is highly controversial because it aims to burn part of the fees, hence decreasing miner revenue.
Meanwhile, EIP 3554 delays Ethereum’s difficulty bomb to Dec. 1. This mechanism will incrementally increase the difficulty of mining on the Ethereum network, effectively “freezing” proof-of-work in preparation for Ethereum’s move to proof-of-stake.
At the time of the video, ETH was teetering slightly above $2,300. The analyst believes that a correction from the current price level is highly probable, whereby Ethereum price could retest the support at $2,000 and $1,700 before resuming the uptrend.
Next on the list is Polygon (MATIC). Although MATIC was trading 65% below its ATH, the layer-2 scaling solution has been performing very well with over 13,150% gain in 2021.
According to the crypto KOL, the digital token’s popularity has increased amongst crypto investors over the last few months owing to the fact that Polygon Network is striving to solve the scalability and usability issues with ethereum while offering faster and cheaper transactions.
In terms of its price potential, Davis notes that MATIC rise is not over yet.
“I think that there’s a lot of gas left in the tank on this coin. I think the next price targets I would be watching as the market becomes more bullish would be $5.00 and $10.00 for Polygon.”
The third coin on the trader’s list is Terra (LUNA), a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.
Recently, the project has attracted $150M for DeFi ecosystem fund. Davis also lists out 3 reasons for his bullish on this coin, including the growing interest in stablecoins, new partnerships and the improving state of the wider market.
“The rising interest in integrating with the Terra ecosystem is a recent example of the growing significance that stablecoins play in the wider cryptocurrency ecosystem, a trend that continues to grow stronger as new participants enter the crypto space,”
Polkadot (DOT) is the next coin of August. As the recent parachain auctions on Kusama (Polkadot’s canary network) have started, Davis speculates about the prospect of parachain auctions on Polkadot.
“We’ve entered the Polkadot era of parachains becoming a real thing. They’re alive on Kusama…They’re doing stuff, which means that Polkadot’s big brother chain – the DOT network – it’s going to have its parachains coming in the not-so-distant future, and I would suspect we’re going to see some announcements around that pretty gosh darn soon,”
“I think very very soon we’re going to see parachain auctions announced for the Polkadot network, and that means we’re going to see that hype building into the launch of parachains on Polkadot.”
Last on the list is Cardano (ADA). The trader says that ADA is a very strong coin and its price has gone up by almost 60x since around this time in 2020.
SundaeSwap, the first DeFi DEX to utilize Cardano smart contracts is expected to launch soon, and many ADA investors interpret this as a potential bullish catalyst for the altcoin.
“Cardano’s implementation of smart contracts, planned for September, could be the catalyst that takes ADA to the next level,” Davis highlights.