Lark Davis Highlights Small-Cap Altcoins With Potential 10x to 30x Gains, Names Aerodrome and NEAR
Crypto analyst Lark Davis sees potential opportunities in overlooked small-cap altcoins, arguing that established protocols generating revenue could deliver substantial gains if market attention returns to the sector. Davis said some tokens could rise 10 to 30 times, while highlighting Aerodrome, NEAR and Sui as projects worth watching and expressing doubts about Starknet’s valuation and strategy.
His outlook comes after years without a major broad-based altcoin rally, a period that has left some traders discouraged. Davis believes investors may be overlooking projects whose revenue has continued to grow even as their token prices have suffered.
Why Lark Davis Favors Revenue-Generating Small-Cap Altcoins
Davis argued that the next major altcoin opportunity may not come from assets that have already recorded significant rallies. He cited Hyperliquid, Zcash and NEAR among the projects that have attracted attention, noting that Zcash has risen 20 to 30 times from its lows.
Instead, he sees potential in established smaller protocols that continue to generate revenue but have lost market attention. Davis said some of these assets could deliver gains of 10x, 20x or even 30x, although those figures represent his assessment rather than guaranteed outcomes.
Why Davis Is Skeptical of Starknet
Davis said he is avoiding Starknet despite increased attention surrounding the project. He criticized its performance over several years and questioned its plan to reposition itself as a quantum-resistant layer 1 blockchain.
He pointed to Starknet’s fully diluted valuation of approximately $1 billion and market capitalization of around $750 million, compared with roughly 5,000 active addresses over a 24-hour period. Davis contrasted that figure with Cardano, which he said records approximately 15,000 active addresses over the same period.
As alternatives, Davis highlighted NEAR, saying it has already introduced quantum resistance, has real adoption and trades approximately 75% below its all-time high. He also named Sui as a layer 1 project that has yet to experience a comparable rally.
Aerodrome Draws Attention for Revenue and Trading Activity
Davis cited Aerodrome, described in the source material as the leading exchange on Base, as an example of a protocol he considers reasonably valued relative to its activity and returns to holders.
A major development is scheduled for October 21, when Aerodrome’s merged exchange with Velodrome is set to go live across seven chains, including Base, Arbitrum and Robinhood Chain.
The source material also reported that Aerodrome’s share of tokenized stock trading volume on Ethereum Virtual Machine (EVM) chains increased from 9% to 40% over the preceding 30 days. It has paid more than $500 million to voters over three years, a total described as exceeding that of any other exchange.
Aerodrome vs. Uniswap: Valuation and Revenue Figures
The figures cited by Davis show Aerodrome with a fully diluted valuation of $1.8 billion, $14.38 billion in trading volume over 30 days and $11.4 million in fees over the same period.
Uniswap, by comparison, has a fully diluted valuation of $6.7 billion, $79 billion in 30-day trading volume and $132 million in 30-day fees. Aerodrome’s valuation is therefore roughly one-quarter of Uniswap’s, although the reported trading volume and fees are also substantially lower.
Davis argued that the valuation gap could leave room for Aerodrome to catch up, pointing to the protocol’s returns to holders. He also referenced a chart showing its price breaking out after spending years consolidating near $0.30.
Davis Warns of a Potential Sell-the-News Reaction
Despite his positive view of Aerodrome’s longer-term potential, Davis cautioned that the token has already rallied ahead of the October 21 launch. He said a sell-the-news decline could follow the event, suggesting investors do not necessarily need to rush into a position before the launch.
His comments highlight the distinction between a protocol’s reported activity and its token’s future performance. The potential gains discussed by Davis remain speculative, while the upcoming launch and market response are developments investors may monitor.
source: coinpedia
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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