Crypto trader and influencer Lark Davis reveals his strategies on how to find altcoins that have the potential to generate 100x returns.

In a new video, Davis says one approach to finding the next big thing is to review decentralized financial (DeFi) protocols running on blockchains other than Ethereum (ETH).

“At the moment DeFi is struggling with Ethereum. The average user pays so much in gas charges … The high charges present DeFi with a great opportunity for other chains right now. For example, the Cosmos (ATOM) SDK-based DeFi is probably one of the most underrated things happening in the crypto industry right now.

We have things like KAVA and HARD Protocol (HARD) and Injective Protocol (INJ) … you chase after those smaller fees … you can pay a fraction of the fees you end up paying for Ethereum. “

Davis adds that he is particularly watching DeFi come to Polkadot (DOT) as he believes coins have a lot of upside potential on the interoperability protocol.

“Think about it. There is currently not a single Polkadot DeFi protocol in the top 100. The highest market cap for Polkadot DeFi coins at this point is $ 120 million for Polkastarter (POLS).

The DeFi coin with the highest market capitalization on Ethereum? It’s about $ 6 billion, which means that if any of these DeFi protocols coming to Polkadot can reach a similar level in the future, it’s a 60x win for the most expensive current Polkadot-based DeFi protocol is.”

The crypto influencer is also looking for Layer 2 scaling solutions for Ethereum to find the next big winner. He says the Matic Network (MATIC) blockchain scalability protocol is clearly a leader in this area as the protocol already has a working product and a growing ecosystem.

“Matic and the solutions based on it could be a good observation area.”

The last area Davis is keeping an eye on is token sales. He says the number of investors participating in token sales is relatively small.

“Selling tokens brings big returns for investors. This year alone there have been likely a dozen token sales that hit 50x or more. That happened. That’s crazy. One couple even made it 100 times. “

The crypto influencer says he is looking at Umbrella’s token sale, which stands out from the sea of ​​oracles, as it is a two-tier oracle solution.

“They can deliver data that other oracles just can’t, or at prices that other oracles just can’t compete with, which makes it very, very interesting.”

Another token sale on Davis’ radar is DAO Ventures, a DeFi robo-advisor and automated money manager that will run on Polkadot and Ethereum (ETH).

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