By The Daily Hodl - 8 months ago - Reading Time: 2 minutes
Here’s One Altcoin From the Ethereum Ecosystem Ready for Huge Growth, According to DeFi Veteran Arthur Cheong
One decentralized finance (DeFi) altcoin is setting the stage for significant growth, according to venture capitalist Arthur Cheong.
Cheong, the founder of DeFiance Capital, tells his 149,600 X followers that crypto staking solution Lido (LDO) is undervalued at the moment and has great growth potential.
Cheong says that the liquid staking market is seeing massive amounts of revenue and attracting investors for its lack of volatility.
“The liquid staking market is large as it grows together with the value of the chains that the protocols service. Today, liquid staking protocols on the top five smart contract chains generate over $800 million in annual revenue. Furthermore, the quality of earnings of the sector is superior to that of other decentralized finance (DeFi) sectors due to their recurring and non-volatile nature.”
He believes that Lido is well-positioned to benefit from the growth of the staking market due to its strong technology and proven reliability.
“Lido is well-poised to capture the growth of the industry due to the strong network effect it has built around stETH, as well as a strong track record of reliability and the move to incorporate decentralized validator technology using SSV and Obol [networks].”
He also says that Lido could see a 3x revenue boost in the medium term due to several factors, including an increasing Ethereum (ETH) market cap.
“LDO is undervalued as we see a potential 3x opportunity in Lido’s revenue in the medium term primarily driven by”
1) Ether market cap increasing
2) Rising Ethereum staking ratio post-Shanghai
3) Increased market share of decentralized liquid staking protocols
4) Continued Lido dominance.”
Lido is trading for $1.85 at time of writing, down 0.8% in the last 24 hours.
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Original source: The Daily Hodl