Kendrick's Top Altcoin Picks: Uniswap, Aave, Morpho, and Arbitrum

Geoffrey Kendrick, head of digital assets research at Standard Chartered, has predicted that four altcoins will capture a large share of the money flowing into the space as traditional finance moves on-chain. These altcoins are Uniswap ($UNI), Aave ($AAVE), Morpho (MORPHO), and Arbitrum ($ARB).

Kendrick has already set a high target for Uniswap, expecting it to reach $100 by 2030, but he now believes this may be too low. He cites the token's strong moat and the burn mechanism that Uniswap turned on last December, which uses trading fees to buy back and burn tokens.

Aave, on the other hand, has been hit by a $300 million hack linked to Kelp in April, but Kendrick sees this as a positive development. He believes the community's quick response and the founder's tightening of risk settings have made Aave an even more attractive option. Kendrick calls Aave the leader in 'on-chain banking' and estimates that at its peak last year, it would have ranked as roughly the 35th largest bank in the US.

Morpho, unlike Aave, is not a direct competitor but rather a platform for asset managers. Kendrick expects it to win the on-chain asset management space over the medium term and has set a target price of $60 for Morpho.

Arbitrum, meanwhile, has seen its revenue skyrocket due to its partnership with Robinhood Chain. Kendrick estimates that if four or five more firms copy Robinhood's model, Arbitrum's monthly revenue could reach $40 million to $50 million within two years. He also notes that Arbitrum trades at a valuation multiple about 30 times lower than layer 1 networks such as Ethereum, Solana, and Avalanche.