Andrew Kang, a well-known crypto entrepreneur and investor, recently took to Twitter to reveal his pick for the next cryptocurrency that could experience explosive growth in price. Kang is one of the founders of Mechanism Capital, an investment firm that focuses on prop-trading, mining, ventures, and secondary markets in cryptocurrencies.
Kang has made a name for himself in the crypto community with his successful trades. In his latest Twitter post, he shared his latest crypto find: Radiant Capital (RDNT). This altcoin has a market capitalization of only $77.3 million and is currently ranked 287th among all cryptocurrencies.
Kang believes that Radiant Capital has the potential to become the “new king of the money markets” and dethrone market leaders Aave and Compound, which have a TVL (Total Value Locked) of $5 trillion and $2 trillion respectively. According to Kang, Radiant Capital can succeed because the company is innovative, while others are standing still.
However, with a current TVL of $260 million over Arbitrum and Binance Smart Chain (BSC), Radiant has a long way to go. Despite this, Kang’s arguments in favor of Radiant are strong. The platform is the first functioning cross-chain market maker, allowing for borrowing on the X-chain and lending on the Y-chain.
Another advantage of Radiant Capital over its competitors, according to Kang, is its potential returns. While Aave and Compound earn only 1-2% returns on stablecoins, which is less than government bonds, Radiant can offer much more lucrative interest rates.
“If 10-40% stablecoin yields from a vetted, year-old protocol are revealed, there is room for TVL growth,” Kang speculates.
Kang believes that Ethereum and Liquid Staking Derivatives (LSDs) represent the second biggest opportunity for Radiant, once the mainnet dApp launches. He expects Radiant to capture a piece of the $4 trillion pie from Compound and Aave with sustainable, incentive-oriented yields.
Another argument in favor of Radiant is that with the rise of Layer Zero and zkSync, it could be well-positioned to benefit as people use the platform to farm potential airdrops.
Kang’s recommendation, however, did not receive unanimous praise from the wider crypto community. Some have argued that Kang’s claims are too far-fetched and not strong enough. However, it is worth noting that the “Binance effect” of a listing has already taken place at the end of March this year.
At the time of writing, Radiant Capital (RDNT) is trading at $0.2926.
