It’s been reported that crypto trader Lark Davis listed Ethereum and some altcoins as great investment picks in 2022.
He said that Ethereum and two altcoins will make “good returns for investors” next year.
He also explained that ETH could hit a five-figure price in 2022.
“I believe that Ethereum will be a five-digit asset, and we could see a $20,000 Ethereum before this cycle finally rolls over and dies.”
Ethereum is trading at $4,055at the time of writing.
According to Davis, there are some catalysts that are aiding the bullish case for Ethereum.
“We have layer-two scaling solutions exploding for Ethereum…We have the move to proof of stake coming for Ethereum. That’s massive beyond belief. We’re moving from proof of work, which is horrifically inefficient, over to proof of stake which will fundamentally change the economics for Ethereum…”
“Then we have the triple halving. So as part of the move to proof of stake, there will be a 90% reduction in yearly emissions of newly created Ethereum…Ethereum is going to become deflationary next year. It’ll just only be going down. Within the next, probably five to ten years, we’ll be back under a 100 million Ethereum.”
Two altcoins are seeing bullish future
Next up is Elrond (EGLD) a scalable blockchain platform suited for enterprises. The factors that are contributing to Davis’ bullishness on Elrond include growing activity on the blockchain platform helped by the launch of products such as the Maiar decentralized exchange (DEX), which is similar to Ethereum-based decentralized exchange Uniswap (UNI).
He is also talking about Polygon (MATIC), a scaling solution for Ethereum designed to allow for the widespread adoption of decentralized apps.
Davis said that the factors which are making him bullish on Polygon include increased usage and growth-led acquisitions. Stay tuned for more news and also make sure to stay safe.