Crypto influencer and analyst Nicholas Merten is breaking down his top decentralized finance (DeFi) plays as the entire sector appears ready to skyrocket in value.
In a new video on the DeFi sector, the DataDash founder tells his 426,000 subscribers that we may be on the verge of witnessing a DeFi “supercyle” quite soon.
The trader says that of the many DeFi projects on the market, he is keeping an eye on six assets, in particular, the first of which is derivatives project dHedge DAO (DHT). Although Merten is not enthusiastic about many of the crypto derivative platforms on the market, he is quite bullish on DHT/BTC. The analyst says he uses the product and is personally invested in the token.
Next on the trader’s list are the decentralized exchanges (DEX) SushiSwap (SUSHI) and Uniswap (UNI). Merten notes that both tokens look interesting from a technical perspective. Though Merten is only personally invested in Uniswap, he says that SUSHI/BTC appears to be at a bargain price compared to the levels it reached in January.
Another asset that Merten is interested in from a technical perspective is yield farming protocol yearn.finance against Bitcoin (YFI/BTC).
1inch not only solves a lot of the issues plaguing DEXs such as gas inefficiency, liquidity problems, or slippage, but its chart also appears bullish of late. Its market cap is also relatively low compared to UNI and SUSHI, sitting at just under a billion dollars. The asset was also added to top crypto exchange Coinbase this week.
The last play the trader is keeping an eye on is micro-cap Warp Finance (WARP/BTC).
Merten is an advisor to the project, asserting that it is one of the first protocols to utilize liquidity pool tokens as collateral rather than using volatile assets such as ETH or other ERC20 altcoins.