FTX chief is betting on ‘Ethereum killers’

The bitcoin market bounce appears to have been short-lived due to profit-taking over the weekend. 

In fact, during the previous 24 hours, Ethereum has lost 3.2 percent of its value. Meanwhile, Solana and Avalanche, the company’s well-known “killers,” were down 5.5 percent and 6.5 percent, respectively. 

FTX CEO Sam Bankman-Fried, on the other hand, believes that both SOL and AVAX are well positioned in the market for the next two years. FTX’s CEO recently stated on a podcast that, aside from the crypto OGs, BTC, and ETH, he believes the aforementioned alts are potential.

Solana

The momentum indicator, the Relative Strength Index (RSI), at its present price levels, indicates an oversold or undervalued market position for SOL. 

SOL, on the other hand, has ‘done something that very few chains have even considered considering,’ according to Bankman-Fried.’ 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 this, one of 2021’s top performers is failing to break $100. With a market-beating Sharpe Ratio of 2.77, the Sharpe Ratio of one year is indicative of that. However, despite widespread weakening, it has failed to deliver in the short run in relation to the risk. The Sharpe Ratio (30D) was -6.80 at the time of analysis.

Avalanche

As long as AVAX’s RSI remained above 30, Bankman-Fried saw further potential in the chain. He feels the project’s personnel knows what they’re doing, but he expects more in terms of scale. In this regard, he added,“That’s not to say I know best and they don’t. They may be right, in the end, about what to prioritize.”

In fact, he went on to add that it’s “a real chain, it’s a cool chain, and I think that there’s a world in which it gets absolutely huge.”

However, given the greater market weakness, AVAX is unable to reproduce the same performance in the short term. While its Sharpe Ratio (1Y) was strong at 1.80 in the last 30 days, it was negative. Notably, given the recent market chaos, the ratio may not be the best indicator. The ratio is steepest after July 2021.

Apart from the two tokens, the FTX chief is keeping an eye on Wrappers. He opined that Wrappers will probably keep growing over time. Thus adding,“As you have a divergence between the chains that have the skill to handle the activity that’s being asked of them, versus the chains that the value lives on, you sort of have no choice but to dive deeper and deeper into wrapped assets.”