Crypto trader and analyst Ivan Liljeqvist explains which of the five altcoins he says are ready to explode in the next crypto hype cycle.
Layer 2 solutions
In a new video, the analyst known as Ivan on Tech told his 415,000 subscribers that Ethereum-based layer 2 scaling solutions could dominate the next stage of the bull market.
“Right now, I think the next step will be projects in Ethereum that move from tier one to tier 2.”
Layer 2 protocols alleviate network congestion in Ethereum by processing some transactions outside the main chain. The solution can process significantly higher volume transactions faster and cheaper, which can then be placed on the Ethereum network.
While Tier 2 solutions show promise to help the Ethereum scale, Liljeqvist says the ecosystem is currently fragmented.
“All the different projects in Ethereum are doing different scaling solutions and choosing different layer 2, Binance Coin (BNB) is just a solution.”
The crypto analyst emphasizes that although there is sharding in Ethereum’s layer 2, protocols in the field have the potential to be the next big moves.
“It is very important to examine and analyze two alternatives in the different layer because we will concentrate on one of them. It can be Matic (Polygon). If you look at the different projects launched in Matic, Matic is probably leading the way right now. In Matic, you have the option for Quickswap (Quick), and they’re kind of like Uniswap. There is a way to trade any assets on Matic via Quickswap. “
Liljeqvist says it should look out for other promising tier 2 solutions, in addition to Matic and Quickswap.
“You should try Honeyswap (HNY) in XDAI. And also, watch out for dYdX. dYdX will be on Starkware. ”
As a result, the famous trader highlights the following coins: