A crypto investment chief at Crypto Valley Venture Capital has revealed that he is closely following a number of Ethereum (ETH) competitors that show growth potential.
According to a new Business Insider report, Olaf Hannemann, founder and chief investment officer of the blockchain-focused venture capital firm, says that in addition to Bitcoin (BTC), there are also a number of interesting projects in the space of smart contract platforms managed by Ethereum.
“The core perspective we have is to support protocols where people actually build projects. Overall, we think Ethereum is a good investment. It is still preferred for many projects and I believe there is still a positive momentum.”
The venture capitalist says that in addition to Ethereum, he likes several competitors of ETH.
“Ethereum has a lot of capital, but Tezos and Cardano have the same situation. We really like Solana and Polkadot too… Avalanche is another platform to consider and we’ve recently started researching the NEAR protocol.”
To take a closer look at the mentioned projects; Tezos (XTZ)is a platform that enables developers to create smart contracts and decentralized applications for products and services. Cardano (ADA) is a scalable decentralized blockchain platform.
To mention the others, Left (LEFT), Avalanche (AVAX) while a tier-1 smart contract platform such as Polkadot (DOT) It is a cross-chain interoperability protocol. Finally Near Protocol (NEAR)is a developer-oriented blockchain designed to focus on scalability and stability.
Considering the more distant future of cryptocurrencies, Hannemann predicts more mainstream money to enter the markets, but states that even this will not completely eliminate the volatility that has been a hallmark of the digital asset space since the inception of crypto a decade ago.
“More and more established capital is coming in. There are different market dynamics than traditional established markets. Being able to trade extremely leveraged positions is both a risk and an extraordinary opportunity. This will bring about a very volatile market in the short term.”
As for the ultimate winners and losers after the crypto space has matured, the venture capital investor says:
“Our investment thesis is basically that we blockchain technology; machine learning, internet of things, personalized healthcare, etc. that we believe is a catalyst for many of the megatrend technologies that are occurring right now, such as
It seems to me that in the long run, in the final phase, it remains unclear whether the winner will be one or two protocols, or many different blockchain projects designed for different industries.
There are evangelists who truly believe that one blockchain is superior to the other, but you know what? I might have a better protocol, but if I can’t convince start-ups to build on it, I’m lost in the long run.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.