Here’s why FTX chief is betting on ‘Ethereum killers’ for the next two years
Looks like the market recovery in the cryptocurrency space was short-lived owing to profit booking over the weekend. And, with the Asian market heading for the Lunar New Year, Bitcoin fell down by 2.3% in 24 hours, at the time of writing.
In fact, Ethereum was also weaker by 3.2% over the last 24 hours. Meanwhile, its renowned “killers” Solana and Avalanche were down by 5.5% and 6.5%, respectively.
However, FTX CEO Sam Bankman-Fried believes that both SOL and AVAX are well placed in the market, say in the next two years. During a recent podcast, the FTX chief noted that apart from crypto OGs, BTC, and ETH, he finds the aforementioned alts promising.
If we look at the Relative Strength Index (RSI), the momentum indicator at its recent price levels shows the oversold or undervalued market condition for SOL.
Source: TradingView
However, Bankman-Fried opined that SOL has ‘done something that very few chains have even thought about trying.’ With regard to scaling, he said,
“They’re one of the only chains that have a real plausible path forward here in scaling to the level you would need to get to if you wanted industrial-scale usage.”
Despite that, one of the top performers of 2021 is struggling under $100. The Sharpe Ratio of one year is indicative of that with a market-beating performance of 2.77. However, relative to the risk, it has failed to deliver in the short term amidst broader weakness. At the time of analysis, the Sharpe Ratio (30D) stood at -6.80.
As AVAX maintained an RSI reading of above 30, Bankman-Fried noticed potential in the chain going ahead. He believes that the team behind the project knows what they are doing, although, he expects more in terms of the level of scaling. In this regard, he added,
“That’s not to
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