2021-05-06 16:33:09
Weekly House of Chimera Altcoin update (week 18)Last week there wasn’t an altcoin update – considering there was just not enough to update about. This week, however, contains some deep insights into the following projects: $LTO, $RSR, $ZIL, and $ETH.
LTO Network ($LTO) – 8/10 (No change)Our current position on $LTO is up by 40% after we bought in a couple of weeks ago. LTO is currently ranked 312 based on market cap, however, based on network activity the ecosystem is more closed to a top 20 ranking. The main issue with most low caps is that they either are illiquid, low network activity or are over-promising. LTO Network is one of these low caps which is extremely liquid, considering it is listed on several tier 1 and 2 exchanges such as Binance and Gate.io.
The network activity of the LTO Network is considerably high in comparison with the market cap. The ecosystem is on average handling 70K daily transactions, and this is significant considering the market cap of the ecosystem. Besides that the ecosystem has a burning mechanism that depends on the amount of network activity, therefore an increase in network activity will have an impact on the circulating supply of the asset.
The ecosystem is not overpromising and the roadmap of 2021 seems to be sensible. The network is actively partnering up with governments and industry leaders. Therefore, creating value for the ecosystem and their native token, $LTO.
LTO Network is severely undervalued at this point, considering their network activity, development, and strategic partners.
Reserve Right (RSR) – 8/10 (No change) Reserve Right is currently in sort of a transition period it seems. The Reserve payment app was opened up in March and surpassed over 100,000 total downloads, currently, more than 1,100 merchants accept RSV as a payment system. The team expanded to 61 people, especially considering the constant growth of the protocol this was needed.
The reason why I mention it is in a transition period is, the payment app is currently closed again for new members and that was according to plan. The reason it is closed is that Reserve Protocol has to ensure that their infrastructure can handle mass adoption and therefore lots of stress testing and gradually increasing the user base is needed. The mainnet of Reserve Right will launch whenever the userbase of RSV is sufficient, to accomplish that Reserve Protocol simply needs time.
House of Chimera remains bullish on Reserve Right, therefore there is no change in the score.
Ethereum (ETH) – 9/10 (Score changed from 8 to 9)Ethereum is currently facing institutional interest. The price of Ethereum doubled since the introduction of CME ETH futures, the ETH volume of these contracts is catching up to the CME BTC futures. The renewed interest in Ethereum is causing a supply crush, therefore the value of Ethereum is increasing.
The DeFi and NFT industries are arguably the quickest growing industries in the blockchain industry. Ethereum has considerable exposure to these industries, and the total value locked in DeFi has reached over 70$ billion according to DeFi Pulse. The NFT market is growing at an immense rate, which makes traditional companies such as eBay consider joining.
The supply crush of Ethereum will only get worse, considering that EIP-1559 will introduce a mechanism by which a percentage of transaction fees are destroyed. Therefore, the scarcity of Ethereum will be improved and will be reflected in the value of Ethereum. On the other hand, the circulating supply of Ethereum is decreasing considering that over 10$ billion USD of Ethereum is staked in the deposit contract of ETH 2.0.
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