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- Analyst Lark Davis predicts that Ethereum, XRP, AAVE, AXS and Polkadot will increase in December.
- The DeFi market and all protocols could see strong growth in adoption in the coming months.
With the cryptocurrency market looking to regain lost momentum towards the end of last week, investors are looking for profit opportunities to pounce on. Lark Davis, a cryptocurrency influencer and analyst, revealed some of the best digital assets for investors to watch as 2020 nears its end. In a recent YouTube video released last weekend, Davis highlighted some interesting digital assets for investors to consider in December.
Davis started with the popular digital assets XRP and Ethereum. He believes ETH 2.0 could be a game changer for Ethereum and the crypto ecosystem as a whole. Davis also hinted at XRP and the effect the Spark token airdrop in December would have on its price. In addition to these large-cap cryptocurrencies, the analyst also spoke of three newcomers who are making silent moves.
The Aave v2 hype should push AAVE
First on Davis’ list is the Aave decentralized finance (DeFi) loan token. This is currently the third-ranked lending protocol on DeFi Pulse, behind Maker and Compound. However, as Davis pointed out, the project has rolled out v2 on testnet, which could attract an influx of users when moving to the mainnet.
Davis also highlighted some of the benefits that Aave v2 offers. These include optimized transactions, a reduced number of transactions required to interact with the protocol, reduced gas rates, fixed deposit rates, and more.
Even the protocol announced an update that now sees governance transferred to token holders. The move comes following a vote in favor of the Aave Improvement Proposal (API), which launched a migration functionality from the LEND utility token to the new AAVE governance token at a rate of 100: 1.
Davis believes Aave could crash into some lucrative markets with so much development coming up and deliver insane returns to users.
AXS is the growing blockchain gaming space
Davis’ second-ranked is Axie Infinity (AXS), a non-fungible token that powers blockchain-based gaming Axie. Axie gaming combines NFT and blockchain games, two emerging blockchain fields. With Axie Infinity powering it, an increase in adoption should also grow the value of the token. Comparing Axie to Pokemon, Davis explained:
If you think the rare Pokemon-like game ideas are a silly idea, be aware that real Pokemon cards are exploding in price recently. The game is super hot. If this game catches on, it could be really great.
Davis added that the game also has some big-name backers, including game developer Ubisoft, tech giant Samsung, HTC, Binance, and MakerDAO. The analyst also pointed out that Axie Infinity is in the early stages of adoption. Its price is relatively low, which means investors could get in on the action and hodl. At press time, Axie Infinity is currently trading at $ 0.44.
The incorporation of Polkadot and Parachain makes KSM attractive
Davis’ third choice is Kusama, an experimental version of the Polkadot blockchain interoperability protocol. Kusama launched in July 2019, with Polkadot saying the resource will be useful for developers looking to create and use parachain.
Kusama also allows developers to test many of Polkadot’s features, including staking and governance, in a real-world environment. The project’s native asset, KSM, has posted some significant gains this year, having jumped from around $ 10 to an all-time high of $ 35 in August 2020. KSM has since broken the record and is now trading at $. 51.70, an 8% increase in the last 24 hours.
Considering that the asset entered the year trading at $ 1.5, its performance in 2020 was quite impressive. Davis also pointed out that Kusama fed on Polkadot’s hype, with the latter becoming a more reliable blockchain for DeFi projects.
Kusama is also set for an update which should see it host 100 parachains starting January 2021. Davis notes that this process should happen slowly and will see competing parachains trying to get on Kusama. This should trigger a significant bidding war that will drive KSM’s prices up and benefit investors.
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