Benzinga - Mark Yusko, CIO at Morgan Creek Capital, said that Avalanche (CRYPTO: AVAX) has the potential to outperform the entire crypto market, including Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).
What Happened: Yusko, in a YouTube video, said AVAX could rally by 50 times in the next bull cycle, provided that Bitcoin and major coins remain successful.
Yusko said that the key to investing in this ecosystem is diversification. “Don’t put all your eggs in one basket.”
He believes that although Bitcoin may be the largest cryptocurrency by market cap, it won't necessarily be the best-performing investment. This is due to the law of large numbers — the larger something is, the harder it is to achieve large gains on the same scale.
Yusko explains that while Bitcoin possesses the largest market cap at $400 billion, even if it were to reach $4 trillion, that would only be a 10-fold increase. However, if Ethereum, which currently has a market cap of nearly $200 billion, were to reach a similar market cap of $4 trillion, that would be almost twice as much of an increase
“But if Avalanche actually becomes that intermediate layer, or becomes a bridge to connect Ethereum… it could be maybe 50x,” he added.
Price Action: At the time of writing, AVAX was trading at $17.30, down 6.57% in the last 24 hours, according to Benzinga Pro data.
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