Five Crypto Platforms Will Increasingly Grab Market Share From Ethereum, Says Trader Lark Davis

Popular crypto analyst Lark Davis thinks five crypto platforms will encroach on Ethereum’s supremacy over the smart-contract marketplace.

Davis notes that he’s still hugely bullish on Ethereum overall – he just also thinks other chains are poised to carve out some of the market share as users wait for Ethereum to upgrade.

Says the analyst,

“We have new decentralized finance (DeFi) on new chains, new non-fungible tokens (NFTs) on new chains, new token sales, new launchpads, all starting to go into a multi-chain reality. Many protocols are integrating multiple chains, and more and more of the dominance of Ethereum is slipping as, of course, it struggles to update itself, lower fees and make the user experience better.

But to be clear: this is Lark. I’m a massive Ethereum bull, and I believe that Ethereum can and will deliver on its promises to scale. But until that happens, I think there is an incredible investment opportunity with other smart-contract platforms, and of course you guys know that I believe in the ‘one network, many chains theory.’ That is what is the reality of what is actually being built out right now.”

Davis’ first pick to challenge Ethereum is Binance Smart Chain, which runs on the native asset Binance Coin (BNB).

“The first and the most obvious (at this point) blockchain, which has already managed to capture market share from Ethereum, is the Binance Smart Chain, and well yes, it does leave a lot to be desired in terms of its centralization issues, it still managed to capture 15% of the DeFi total value locked in just the last few months. No other blockchain at any point has managed to capture such a large market share from Ethereum, and you can see why: the fees are dirt cheap, there are loads of applications to use over on BSC (PancakeSwap), it’s fast, it’s simple, it’s a pleasure to use, it’s offering a good experience for users.”  

The next pick is Terra (LUNA), which Davis says is carving away market share because it has popular applications like Mirror Protocol, which creates fungible assets that track the price of real-world assets, allowing investors to essentially serve as market makers for the stock market.

Explains the analyst,

“I think that this is one chain that we’re going to hear a lot more about and which will continue to syphon away market share as long as they continue providing products that people want to use at affordable prices.” 

Next up on Davis’ list is Solana (SOL), a blockchain he notes can process 50,000 transactions per second and is home to an “exploding” DeFi ecosystem. Some of the biggest names in the crypto space are investing in Solana, he adds.

The analyst’s fourth pick is Polkadot (DOT).

Notes Davis,

“The total ecosystem for Polkadot — what’s being built is incredible. I’ve never seen such a level of excitement from developers and from investors to build on a blockchain which has not even fully yet launched its network capabilities. There are probably right now around – I would say – approximately 200 different projects building on or saying they’re integrating with Polkadot.”

Last on Davis’ list is Cardano (ADA). The trader notes he’s excited to see to the non-fungible token (NFT) ecosystem start to come to life on Cardano.

“There’s one simple reason you should not be counting out Cardano. It’s the level of hype and the dedicated community for Cardano — absolutely massive. Absolutely massive. Cardano is one of the top blockchains in terms of having a highly motivated and highly enthusiastic user base. I for one would not be keen to bet against the Cardano community.”

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