According to the latest reports, crypto trader and analyst Nicholas Merten said that he is accumulating three DeFi coins ahead of the next altcoin hype cycle.
In a new instalment of DataDash, Merten said that he believes the altcoin market is one catalyst away from igniting the next leg up.
“[Bitcoin] is over a trillion-dollar asset in valuation. This means that a lot of that liquidity can start to circulate to other cryptocurrencies and again play into the discussion of the secondary phase of the current cycle that we’re in… If you haven’t been seeing it through NFTs (non-fungible tokens), if you haven’t been seeing it through DeFi, if you haven’t been seeing it through oracles and all the other facets of the altcoins space, the optimism is here. It’s just waiting for that catalyst moment where some of the larger-cap plays really start to pop off,” he said.
Three viable DeFi coins
He said that the first coin that he’s buying is decentralized exchange protocol Uniswap (UNI).
“Uniswap has a really unique position here when it comes out with Uniswap v3. If we have Uniswap v3 launching this month where you have features like single-sided liquidity where you can provide liquidity to a liquidity pair, any type of trading pair within its automated market maker, where you can provide your tokens and earn fees over time,” he explained.
He said that “If you bring about layer-two scaling through optimism or optimistic rollups, where you’ll be able to reduce gas fees to practically nothing… If you have these two features here, you have the perfect storm to build a vortex of liquidity sucking into the Uniswap protocol to make it the ultimate exchange that the vast majority of users can use.”
The next coin on Merten’s list is Stacks (STX) which is a project that seeks to bring a killer use case to Bitcoin and the third coin is Benchmark Protocol (MARK).