en

New Class of Crypto Assets Will Outperform Bitcoin and Ethereum in New Bull Run, Says Luke Martin


dailyhodl.com 2020-07-16 17:20
Reading time: ~2 m

Decentralized finance (DeFi) crypto assets will continue to outpace the broader crypto market, according to crypto analyst Luke Martin.

The popular trader and head of Venture Coinist says he believes the emerging class of altcoins are just getting started, and mainstream investors remain unaware of the DeFi movement.

“Mainstream attention is not yet on this thing. There are actually a lot of crypto investors who aren’t in DeFi yet either, the reason being it’s not attracting mainstream interest. They’re also not the easiest things to buy. A lot of these coins are unknown, even the concepts are hard to understand and to acquire them is also quite difficult. Even people that want to get in I think have been hesitating because they’re waiting for a full-blown alt season or for Bitcoin to rip. So you have a really unique trend happening here in crypto…

These altcoins by far have been the best performers for the past couple months. I think they’re going to continue to be the best performers. You have things like Compound (COMP), which ripped to a $1 billion market cap. You have things like LEND, which has done almost 100x now. You have LINK, which just ripped to new all-time highs. 

These coins are flying every single day. Regardless of what Bitcoin or ETH or the rest of the crypto market does, right now money is being allocated to these DeFi altcoins. It’s been the best performing group, and I actually think it will continue to be the best performing group.”

Martin points to Aave (LEND), an open-source and non-custodial protocol enabling the creation of money markets, as one of the best performers in the DeFi trend. The coin is now up over 1,400% since the time it was launched.

He believes COMP, an Ethereum governance token for decentralized lending platform Compound, was probably overvalued at a $1 billion market cap, which it nearly touched on June 21st just one week after launching. COMP’s current market stands at $425.5 million, according to CoinMarketCap.

Martin also says Chainlink’s recent all-time high was driven by the DeFi bull run.

“People are saying if DeFi is going to be big. It needs oracle information. LINK’s going to power that.”  

Despite his optimism, Martin warns that volatility in the crypto markets tends to swing to the upside and the downside rapidly, and the overall market will still react to large swings in the price of Bitcoin.

I

Featured Image: Shutterstock/Bryan Vectorartist


   Source