A popular cryptanalyst looks under the hood of a couple Ethereum (ETH)-Alternatives to see which one might perform best.
In a new strategy session, pseudonymous Coin Bureau host Guy updates his 2.03 million YouTube subscribers on his expectations for the cross-chain interoperability protocol Polka dot (DOT) as well as on Cosmos (ATOM)an ecosystem of blockchains designed for both scalability and interoperability.
Three months ago, the analyst did a deep dive into the parachain-Auctions by DOT, a highly selective process to determine which project-specific blockchains will be integrated into the Polkadot network.
The landlord now says
“[A] The demand driver for DOT comes from use cases on Polkadots parachains, most notably from Acala, which recently launched a massive stimulus fund for its DeFiplatform (decentralized finance) that leverages DOT.
A handy side effect of Polkadot’s parachain slot auctions is that nearly 15% of DOT’s circulating supply has been locked for two years, and when you add that to DOT’s staked supply of about 55%, it means that only about 30% of the DOT offering are available for sale.
This should result in more price volatility for DOT when demand returns, but the massive ones market capitalization from DOT means it will be hard to go beyond triple in the short to medium term, especially with all of this Resistancewhich was built around the $30 mark.”
At the time of writing, Polkadot is down 4.11% and is trading at $14.94.
Moving on to Cosmos, the Coin Bureau moderator elaborates on a February video and says he foresees decent growth barring a crypto market meltdown.
“Many projects in the Cosmos ecosystem are not fully supported by centralized exchanges or even resist listing on centralized exchanges. This only increases the demand for ATOM as a bridge currency to these new chains.
Another advantage of ATOM is a medium-sized market capitalization. That means it takes less money to boost ATOM’s price on a percentage basis. To put things in perspective, if ATOM saw the same level of investment as DOT, it would result in a triple the current price.
I think this is a realistic short to medium term expectation for ATOM based on retail interest rate yields. If that actually happens and at the rate at which the Cosmos ecosystem is growing, I think a 5x move is possible.
I want to emphasize that all of this assumes that the crypto market will continue its rally, which is by no means guaranteed.”
Currently costs cosmos currently $17.79.
When it comes to which altcoin is better, Guy says it’s a tough decision because each project is very similar in some ways.
“It’s uncanny how similar these two crypto projects are. The only real difference is the purposes their blockchains serve and it looks like they are similar on this side as well.
That’s because Cosmos will be rolling out inter-chain security later this year, allowing smaller Cosmoscryptocurrencies will allow their Blockchain for added security, much like parachains do on Polkadot.”
The cryptanalyst’s final verdict is in favor of Polkadot as it can be attractive to institutions over the long term.
“Unfortunately, ATOM’s tokenomics don’t translate to excellent economics. This is where DOT rules, because while DOT isn’t used to pay for the fees on all of Polkadot’s parachains, it has more than enough institutional interest to make up for it, nAlways keep in mind all the secondary utilities on parachains.
As for ATOM, its primary demand drivers are mostly temporary as centralized exchanges continue to add popular Cosmos projects. The use of ATOM as a bridge currency will decline, especially as it has failed to evolve into the hoped-for interoperability hub.”
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Source: Crypto News Deutsch