Altcoin Daily founder and crypto trader Austin Arnold is unveiling a list of nine cryptocurrencies that he says have the potential to erupt this year.
At the top of Arnold’s list is the leading smart contract platform, Ethereum (ETH).
He highlights data from ViewBase that shows 2% of the Ethereum supply just left exchanges in a single day, a sign that traders are scooping up ETH and moving it to private wallets.
The next coins on Arnold’s radar are three blue-chip decentralized finance (DeFi) coins. The crypto strategist says he’s looking at peer-to-peer lending protocol Aave, borrowing and lending platform Compound (COMP), and stablecoin governance token Maker (MKR) as the total value locked in DeFi soars over the last few months.
“DeFi lending platforms collectively added $6.32 billion across their total value locked in the last three months. While the prices of these coins are not at all-time highs yet, if you take a look, with the actual utility, the function that they’re doing, they’re growing month after month. In fact, specifically for Maker, Maker DAO ranks in the top 10 most active DApps in a week being up 127%. Maker DAO’s users and volume also increased, seven-day users increased by 7%, seven-day volume increased by 70%.”
Taking the fifth spot is Ethereum competitor Polkadot (DOT), which Arnold says is currently on fire.
“DOT is one of the hottest coins of this cycle. It’s not a long-term hold but in the short term, in the midterm, I expect Polkadot to continue trending up.”
At number six is Compound-based lending and borrowing DApp Cream Finance (CREAM). Arnold notes that Cream has a new functionality that has the potential to be huge for the DApp.
“Check this out. You tell me if this is a big deal, ‘The Cream Finance project, a lending protocol, the one that recently merged with the Yearn ecosystem, announced the upcoming launch of its Iron Bank feature… [Cream’s Iron Bank] is an attempt to create a decentralized finance equivalent of corporate debt. The announcement released on Thursday explains how the market for peer-to-peer lending in traditional finance, worth $70 billion, pales in comparison to the world of corporate credit with $10 trillion in loans outstanding…’
Why would anybody be interested? It’s because in a world where interest rates are zero or negative you can get some awesome yield in Cream Finance.”
Coming in at number seven is yield aggregator yearn.finance (YFI). Arnold says that YFI is starting to trend up just as it reveals a new proposal for token holders.
“For instance, ‘Yearn proposes buy back and build strategy for YFI holders. Instead of receiving dividends, yearn.finance would buy and redistribute tokens with protocol revenue.’”
Token number eight is blockchain scalability platform Matic Network (MATIC), which Arnold says he included on the list but forgot the reason why.
The last coin on Arnold’s list is Bitcoin. The crypto trader says BTC is still a great buy at current prices for “life-changing wealth.”
“Let’s not be fools here. Bitcoin is literally internet gold. Just look at what smart money is doing and there’s really only one. Bitcoin converts another skeptic into a believer. Billionaire investor Howard Marks admits he needs to change his skeptical view. How many other billionaires feel similarly?”
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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/Yuri Kabantsev