Venture Capitalist Predicts 2,200% Gains for This Altcoin
Chris Burniske, partner at Placeholder, predicts 2,200% gains for Stacks (STX), a Bitcoin project with little competition.
The crypto market is notoriously volatile and unpredictable. However, Chris Burniske, a partner at venture capital firm Placeholder, has boldly predicted one altcoin that could potentially see gains of 2,200%.
Background on Stacks and Bitcoin
Stacks (STX) is a blockchain project working to boost Bitcoin‘s utility. While Ethereum’s layer-2 ecosystem has been attracting new capital and interest, Bitcoin has been left behind due to the belief that the blockchain cannot be programmable.
However, Burniske believes that Bitcoin’s layer-2 ecosystem may soon have its moment, which could greatly benefit STX.
STX vs. Ethereum
Burniske notes that because people gave up on Bitcoin programmability, STX has little competition, whereas competition amongst Ethereum layer-2s is stiff. The largest layer-2 on Ethereum is MATIC, which has a fully-diluted network value of $12.4 billion, or 6.4% of ETH’s network value. Stacks has a fully-diluted network value of $1.36B, or 0.28% of BTC’s network value.
Potential gains for STX
According to Burniske, if STX were to reprice to be on par with MATIC’s relative valuation to its layer-1, it would imply a ~23X increase, which doesn’t even consider Bitcoin appreciation. This means that STX could see gains of 2,200%.
$STX is worth $1.36B FD NV, or 0.28% of $BTC's NV. A repricing to be on par with $MATIC's relative valuation to its L1 would imply a ~23X, and that doesn't take into account #bitcoin appreciation.
You can do the rest of the dream math ✌️
— Chris Burniske (@cburniske) February 26, 2023
READ MORE: Bitcoin: Analyst Shares His 2023 Scenario for the Cryptocurrency
Other crypto assets of interest
In addition to STX, Burniske also lists several other crypto assets that he finds interesting, including Dogecoin (DOGE), Toncoin (TON), Lido DAO (LDO), Internet Computer (ICP), Algorand (ALGO), Flow (FLOW), Decentraland (MANA), and Axie Infinity (AXS).
Coins I've never had a position in but find interesting, just scrolling @coingecko top 50:$DOGE$TON$LDO$ICP$ALGO$FLOW$MANA$AXS
— Chris Burniske (@cburniske) February 26, 2023
Conclusion
While the crypto market is highly unpredictable and volatile, Burniske’s prediction about STX potentially seeing gains of 2,200% is bold.
Additionally, his insights into the current state of Bitcoin’s layer-2 ecosystem and the competition amongst Ethereum layer-2s provide valuable context for understanding the potential of STX in the current market.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
