Crypto trader and analyst Lark Davis believes that altcoins are poised to ignite a meteoric rise this year amid the rapid maturation of the crypto markets.
In a new video, Davis tells his 315,000 that the altcoin market cap is primed for a giant rally after taking out a key resistance level.
“The last time the altcoin market cap turned its old 2014 highs into support, it rallied 27,000% in just over a year. The altcoin market cap has rallied over 119% in the 70 days since turning its old 2017 highs into support. This is just the beginning.”
In the midst of the huge technical breakout, Davis says that the fundamentals in the sector support the upside potential of the altcoin market cap.
“There are now multiple blockchains running smart contract applications that actually have users. In 2017, it was all about Ethereum… Now, we have multiple blockchains doing really cool stuff. We have Binance Smart Chain (BSC), we have Solana (SOL), we have Avalanche (AVAX), and we have lots of other stuff going on [with] smart contracts, which means there are lot more options for users.”
Davis also highlights the exponential growth of fiat on-ramps that make it easier for retail investors to enter the crypto markets including the arrival of CashApp, Robinhood, and PayPal.
The trader adds that in the current bull run, the crypto markets are offering products with actual use cases.
“Back in 2017, there were very, very few working products in the cryptocurrency industry. Now, we have all kinds of working products and they’re good products, they’re interesting products, and they’re useful products. We have Aave, Uniswap (UNI), and Synthetix (SNX), and dozens and dozens of newcomers that have come into the market and are delivering technology in a rapid, rapid way.“
Davis is looking at the possibility of a Bitcoin ETF (exchange traded fund) in the US as well, which he says can be a huge catalyst for altcoins. The trader posits an ETF-fueled ascent in BTC might ignite a massive blow-off top for altcoins.
Another factor that might push altcoins to greater heights is the entry of new money. Davis mentions Dogecoin’s (DOGE) meteoric rise as an indicator that fresh retail money is flowing into the crypto markets.
The trader also notes key developments in the crypto space such as the development of Cardano smart contracts, Polkadot (DOT) parachains, and Ethereum’s transition to proof of stake and ETH 2.0.
Finally, Davis says that a crush of institutional money is entering the crypto space.
“VC (venture capitalist) money and institutional money are flooding the market. a16z (Andreessen Horowitz) just launched a billion-dollar crypto fund. Companies, family offices, and funds buying altcoins already.”