DataDash founder and popular crypto analyst Nicholas Merten is looking at building bigger positions in three crypto assets in October.
Number one on Merten’s list is UNI, which is the new Uniswap protocol governance token that shot up to highs of around $8.40 within days of its launch on Sept. 16th, according to CoinGecko. Merten says he already owns some UNI but wants to buy more because the token has made a substantial pullback and he believes in the utility of the decentralized trading platform.
“My key point here is that Uniswap is probably the most fundamentally useful, utilized and valuable DeFi protocol. Taking a look at the overall total locked-up value… it is the largest DeFi protocol.”
His second pick, OmiseGO (OMG), is a non-custodial, layer-two scaling solutions for Ethereum (ETH). The crypto influencer notes that OMG is poised to address the issue of skyrocketing transaction costs on the Ethereum blockchain.
Merten also explains why he just built a position in OMG.
“As you all probably know, Tether had announced a partnership in this case with OmiseGo. They’ve started to allow the ability to migrate Tether onto OmiseGo and to take away some of that on-chain demand in order to reduce fees not only on the Ethereum mainnet but also to give people who are using layer two that opportunity to have lower fees in general.”
From a technical perspective, Merten says the OMG/BTC pair is in a position to generate a massive 10x return.
His last pick, Ampleforth (AMPL), is a new type of crypto aiming to achieve price-supply equilibrium. According to its whitepaper, AMPL’s supply goes through rebasing every 24 hours based on the token’s price. If AMPL trades above $1, supply expands and users get more tokens, and if AMPL trades below $1, supply contracts and users lose tokens.
Merten says he holds “a decent-sized position” in AMPL and is looking at it as a bullish play over the next few months.
“Analyzing price here, I do like that we’re very close here to testing the third time here on this line of support… Third time’s a charm here usually in this case, making support, getting a rebound here, and getting some of those positive rebase days again.”
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