Risk capital investor Arthur Cheong has made a notable statement, claiming that the rise in the service token AKT of the decentralized finance (DeFi) protocol Akash Network, which has seen astronomical price increases in some altcoins since the beginning of the year, will continue in the long term.
The Long-Term Potential of Akash Network
Arthur Cheong, founder and CEO of DeFiance Capital, emphasized the promising future of cloud-focused DeFi protocol Akash Network (AKT) and called for a rise in the long term. Cheong implied that the rise in AKT would continue and said, “It is a highly promising project with good fundamentals and industrial tailwinds. While almost no one in the crypto community is talking about it, its value has doubled in just one week. This tailwind has been active since January, so it is a good confirmation not to follow every short-term narrative in order to achieve significant gains.”
Akash Network, which also focuses on machine learning and artificial intelligence (AI), is currently trading at $1.16, a 12.7% decrease in the last 24 hours, after a significant surge since the beginning of the month. Despite the recent pullback, the cryptocurrency, ranked 136th by market capitalization, has seen a 68.52% increase in the past 7 days, a 106.18% increase in the past 30 days, and a 174% increase in the past year.
The introduction of the Stable Payments feature, which allows investors to make payments using USD Coin (USDC), one of the leading stablecoins issued by Circle, on the testnet, was a significant trigger for the price increase.
The Rise of Layer 2 Projects
Cheong also pointed out that Layer 2 (L2) altcoins are currently highly sought after. In a general comment about L2 projects, the venture capitalist said, “Announcing the transition to L2 with tokens within 3 to 6 months will no longer provide a significant rally. In the long term, a successful L2 will be the one that not only has good technology but also has good token distribution. The success of Base is a perfect example of this. L2 projects that build the right infrastructure to onboard millions of users are experiencing a significant rise.”
For those unfamiliar, Base is the Layer 2 scaling solution recently launched on the mainnet by Coinbase. Built on the Ethereum network, Base continues to rise in popularity due to its strong demand.
