Venture Coinist founder and crypto analyst Luke Martin is naming a handful of crypto assets that he believes will outperform Bitcoin this year.
In a new installment of Profit Maximalist, Martin says he’s bullish on the nascent and high risk decentralized finance (DeFi) market. Citing a quote from Three Arrows Capital founder Su Zhu, the crypto analyst explains why he thinks capital will continue to flow into DeFi.
“Here’s what he tweeted out, ‘It’s almost as if blue-chip institutional-grade DeFi tokens represent real ownership and participation in emergent peer-to-peer financial networks that may one day be the underpinnings of the global financial system and that they… are starting to wake up and get it, too.’
As in, the masses are starting to get it, not just the early investors, but there’s an entire repricing happening where even the slower-moving crypto investors are starting to realize some of the old projects they supported that are maybe trying to challenge Bitcoin or some of the old platforms they supported that have grand visions but have never actually built anything, that money is going to flow somewhere. So it either goes back to Bitcoin or if it’s still chasing altcoins, it’s going to go to altcoins with billions of dollars locked up that are actually building things.
The normies are finding it as well, not just the sharp investors. That’s where that additional money comes from and continues to flow into these things.”
Martin says he is moving money into a list of DeFi coins as he expects them to be the best performing crypto assets of 2021:
- yield aggregator yearn.finance (YFI)
- DeFi trading platform of synthetic assets Synthetix (SNX)
- peer-to-peer leading protocol Aave
- decentralized exchange Uniswap (UNI)
- automated market maker SushiSwap (SUSHI)
- Ethereum-based stablecoin governance token Maker (MKR)
- borrowing and lending protocol Compound (COMP)
- cross-chain liquidity network THORChain (RUNE)
- decentralized exchange Balancer (BAL)
- stablecoin decentralized exchange Curve Finance (CRV)
- Nexus Mutual transferable tokens Wrapped NXM (WNXM)
- inter-blockhain liquidity provider for decentralized applications REN
- decentralized oracle network Chainlink (LINK)
- Chainlink competitor Band Protocol (BAND)
Martin says that those who invest in DeFi are putting themselves in a position to earn a stake in the future of the financial system.
“What’s being built here, in the decentralized world in this DeFi world, is going to be much bigger than the centralized counterparts.
Think about it like Bitcoin versus gold. Which do you think is going to have a higher market cap in 100 years? I think Bitcoin is going to continue to chew into gold’s market cap in the exact same way that DeFi [projects] are going to continue to eat into their centralized counterparts.”
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