The investor who accurately called the bottom of the crypto bear market says that 2,200% gains could be in store for one trending altcoin.
Chris Burniske, partner at venture capital firm Placeholder, says that Stacks (STX), a project aiming to boost the utility of Bitcoin (BTC), has a lot more upside potential than people realize.
Burniske says in a Twitter thread that while Ethereum’s (ETH) layer-2 ecosystem has attracted swaths of new capital and interest, Bitcoin has so far lagged behind in that respect due to market participants giving up on making the flagship blockchain programmable.
However, Burniske says that Bitcoin’s layer-2 ecosystem may be close to having its moment, and with little competition, STX may reap the benefits.
“Because people gave up on Bitcoin programmability, Stacks has little competition, whereas competition amongst Ethereum L2s is stiff. Meanwhile, the largest layer-2 on Ethereum is MATIC, which at $12.4B fully-diluted network-value (FD NV) is 6.4% of ETH’s NV.
STX is worth $1.36B FD NV, or 0.28% of BTC’s NV. A repricing to be on par with MATIC’s relative valuation to its layer-1 would imply a ~23X, and that doesn’t take into account Bitcoin appreciation.”
At time of writing, STX is trading at $0.932, up 238% this month.
Burniske also lists a number of crypto assets that he finds interesting including:
- Dogecoin (DOGE)
- Toncoin (TON)
- Lido DAO (LDO)
- Internet Computer (ICP)
- Algorand (ALGO)
- Flow (FLOW)
- Decentraland (MANA)
- Axie Infinity (AXS)
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