Analyst and trader Tyler Swope says a crypto asset that’s flying under the radar has the potential to surge 10x this altseason.
Swope tells his 166,000 subscribers on YouTube that he’s looking at an Ethereum-based token that’s designed to help Ethereum users deal with soaring gas fees.
“So how to capitalize on increasing gas fees? Well, with a certain crazy pick of mine which was made to do just that, help with high transaction fees on Ethereum’s main chain. That is the Chi Gastoken (CHI) from 1inch exchange. So what is Chi Gas?
If you didn’t know, the deployment of an Ethereum smart contract, it requires substantial gas, which costs money. The CHI token is used in combination with any smart contract and it’s burned with the transaction and it can reduce the cost of that smart contract by almost half.”
The team behind decentralized finance (DeFi) powerhouse 1inch created CHI in an effort to give its users a way to avoid high trading fees. Swope calls it a hedge against high fees on the Ethereum network, which have skyrocketed in the recent bull run.
“It’s basically a token to hedge against Ethereum gas prices. Since gas increases in bullish cycles or whenever Ethereum gets volatile, the CHI token, it also increases.”
While the crypto influencer is bullish on CHI, he explains why doesn’t plan to hold the token for more than a year.
“I would take those CHI and turn them right back to Ethereum eventually as Ethereum has something coming and coming soon, which is supposed to ease fees, changing the fee market for good and when it does drop, it will bring another little price bump for Ether but it will hurt gas tokens.”
Swope is looking at Ethereum Improvement Proposal (EIP) 1559, which is designed to drastically alter the fee mechanism of the ETH network.
“Well [EIP 1559] makes the gas fee market for Ethereum more efficient, and it burns some of the transaction fees, destroying Ether forever. Although like I said, the Chi Gastoken could be a play for a few months up to a year, especially if we get a full on nasty bullish cycle for Ethereum.”