Andrew Kang, a renowned crypto entrepreneur and investor, has revealed via Twitter his choice for the next cryptocurrency that may soon explode in price. Kang is the co-founder of Mechanism Capital, which invests in cryptocurrencies through prop trading, mining, ventures, and secondary markets.
In the crypto community, Kang has made a name for himself with his winning trades. On Twitter, Kang now shared his latest crypto find: Radiant Capital (RDNT). The altcoin has a market cap of just $77.3 million, currently ranking #287 among all cryptocurrencies.
According to Kang, Radiant Capital has the potential to become the “new king of the money markets,” toppling market leaders Aave and Compound from their thrones with a TVL of $5 trillion and $2 trillion, respectively. According to the investor, Radiant Capital can succeed because it is innovating while the others are treading water.
Next Crypto To Explode A La SUSHI?
However, with a current TVL of $260 million via Arbitrum and the Binance Smart Chain (BSC), Radiant has a long way to go. The case for Radiant is strong, however, according to Kang: the platform is the first functional cross-chain market maker (borrowing on the X-chain, lending on the Y-chain).
Also boosting RDNT’s price could be its upcoming launch on Ethereum and zkSync. Another advantage Radiant Capital has over its competitors, according to Kang, is the potential yield. While Aave & Compound only yield 1-2% on stablecoins, less than treasuries, Radiant can offer much more lucrative rates.
“With >$100B stablecoin mkt cap & $10B+ stables once in MMs now idle, this untapped liquidity is a huge opportunity: as 10-40% stablecoin yields from an audited, year-old protocol become known, expect TVL growth,” speculates Kang.
The second biggest opportunity according to him are Ethereum and Liquid Staking Derivatives (LSDs) when the mainnet dApp launches. Once that happens, Kang expects Radiant to capture a piece of Compound & Aave’s $4 trillion pie through sustained, incentivized yield.
Another argument: with the rise of Layer Zero and zksync, Radiant could be well on its way to becoming a major beneficiary as people use the platform to farm potential airdrops.
Also worth noting, according to Kang, is that Radiant has already surpassed Aave, Compound, and even Solana in 90 day revenue. Looking at the 90 day trend, Radiant is the fastest growing protocol in this field.
However, the biggest trigger for an explosive rise in the price of the RDNT token could be a vampire attack on the outdated liquidity of existing money markets, a la Sushiswap. Kang writes in his latest tweet today:
Sushiswap’s vampire attack on Uniswap was a core factor in it achieving a billion+ TVL and multi billion valuation. Have we seen a successful one since then? What about a vampire attack on money markets?
If billions of stables and LSDs are barely earning 1-2% in Aave and Compound, how much would move for 10% yield? 20%? 30%?
Kang Buys $1.11 Million In RDNT
As Arkham Intel reports, Kang has followed up his words (after the first tweet on Wednesday) with action. Andrew Kang’s on-chain address has begun acquiring RDNT tokens. Initially, the trader bought 3.922 million RDNT for $1.11M.
Over the past 24 hours, his address 0xe8c has bought 3.922M $RDNT for $1.11M.
— Arkham (@ArkhamIntel) June 8, 2023
However, Kang’s recommendation has not been met with unanimous enthusiasm throughout the crypto community. Some voices think that Kang’s theses are too far-fetched and not strong enough. On the other hand, it should be noted that the “Binance effect” of a listing already happened at the end of March this year.
At press time, Radiant Capital (RDNT) traded at $0.2926.
Featured image from iStock, chart from TradingView.com