Crypto trader and analyst Ivan Liljeqvist is pulling back the curtain on five altcoins that he says are primed to erupt in the next crypto hype cycle.
In a new video, the analyst known as Ivan on Tech tells his 415,000 subscribers that the narrative on Ethereum-based layer 2 scaling solutions could dominate the next phase of the bull market.
“Ethereum is not just going to stand behind and that’s what we’re witnessing right now with layer 2s… I do think that right now, the next step will be projects moving from layer 1 on Ethereum to layer 2.”
Layer 2 protocols alleviate the network congestion in Ethereum by processing some operations off of the main chain. The solution can process a significantly higher volume of transactions quicker and cheaper which can then be settled on the Ethereum network.
While layer 2 solutions show promise in helping Ethereum scale, Liljeqvist says the ecosystem is currently fragmented.
“All of the different projects on Ethereum, they do different kinds of scaling solutions and they pick different layer 2s while Binance (BNB) is just one solution.”
The crypto analyst highlights that even though fragmentation on Ethereum’s layer 2 exists, there’s potential for protocols in the space to be the next big movers.
“It’s very important to study and analyze the different layer 2 alternatives because we’re going to concentrate on one of them. It can either be Matic (Polygon). Matic right now is probably leading the way if you look at different projects that are launching on Matic. On Matic, you do have Quickswap (Quick) and they do have a way to trade all kinds of assets on Matic through Quickswap, kind of like Uniswap.”
In addition to the tandem of Matic and Quickswap, Liljeqvist says to keep an eye out on other promising layer 2 solutions.
“On xDAI, you guys have to try Honeyswap (HNY). And also, look out for dYdX. dYdX is going to do on Starkware. So you see three different solutions on Ethereum: xDAI with Honeyswap, Matic with Quickswap, and dYdX, they’re doing on Starkware.”
IDon't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Bioraven