Messari researcher Ryan Watkins drew attention to 4 small-market altcoins in the Ethereum ecosystem.
Thinking that these altcoins could rise next to the second largest blockchain with decentralized finance (DeFi), the rising star of the last period, Watkins shared his views on the subject in a few tweets:
“Ethereum is facing scaling challenges, and interest in DeFi is growing parabolically. There’s no better time right now for a parallel DeFi ecosystem to emerge. ”
Watkins stated that Terra (LUNA) of these altcoins has the highest transaction fee after Bitcoin and Ethereum, yet this altcoin is on its way to generating $ 3.8 billion annually and will pocket $ 26 million in transaction fees. ‘says. Watkins commented on Luna as the “big winner”:
“If LUNA is valued like its friends (DeFi tokens), it will reach $ 3.53, which means 10 times the value when you compare it now.”
Another decentralized coin that Watkins is looking at is KAVA, a lending platform. According to Watkins KAVA has an interesting monetary policy and the platform burns KAVA when the loan rates are paid. This prevents the inflation created by KAVA when staking and liquidity providers are rewarded. Watkins also stated that KAVA has much bigger goals, thanks to the cross-chain ecosystem Cosmos.
Band Protocol (BAND)
The next altcoin on Watkins’ list is the decentralized oracle network Band Protocol (BAND) that integrates the blockchain world with off-chain events and data.
Stating that BAND and Chainlink have performed very well this year, Watkins commented that the big difference in value between the two coins is a sign that BAND could rise much more.
The altcoin Watkins thinks should be paid attention to is THORChain (RUNE). Commenting on the clever economic design of this altcoin that keeps a significant amount of coins out of its circulation, Watkins said:
“The relationship between validators and liquidity providers is that the RUNE value staked and connected in the network should be 3 times the value of external assets held in liquidity pools (because 50 percent of each pool is RUNE).
Watkins also stated that RUNE acts as the basic pair for all assets supported by the decentralized liquidity network and that this token is used as a collateral to control the movement of assets in liquidity pools.