Famous trader and DataDash founder Nicholas Merten lists the top 10 crypto assets to watch in 2021.
Number 10 on Merten’s list is Hegic, an Ethereum-based derivative options trading platform.
“As DeFi continues to grow, so will decentralized derivatives. Hegic provides the ability to call or place options on cryptocurrencies such as Ethereum… Given the size and demand of option contracts in crypto and other asset classes, Hegic could be a big game moving forward in 2021. “
Ranking ninth, Warp Finance is a project that has weathered a big storm this year. Warp has managed to recover 75% of the funds stolen in a flash credit attack and is preparing compensation for the victims and reaching out to audit firms to increase the security of the protocol.
“Warp is offering liquidity providers (LP) a way to lock LP tokens as collateral to borrow a wide variety of stable coins at affordable rates with an incredibly low likelihood of liquidation. In the first week, the protocol pulled millions of LP token deposits. “
Number eight is the DeFi Money Market (DMM), which Merten believes has solved an interesting problem.
“DMM is an open protocol that allows anyone to lock down their preferred stablecoin and show interest in real-world assets… What I love about DMM is that it reverses the traditional banking model. Instead of banks taking your deposits or savings and lending them to borrowers and holding the vast majority of interest income for themselves, DMM is collecting returns from assets that add effective value to the economy and returns the vast majority of these earnings to depositors.
In seventh place comes Unibright (UBT), which Merten refers to as “a big heavyweight in the corporate blockchain world”.
“In my opinion, the corporate blockchain is one of the biggest crypto industries that has not received enough attention, and for Unibright, the project’s specialty. Starting from the Unibright framework, it was able to offer a way for enterprise companies to automate and significantly simplify smart contract generation, building a name for themselves in this area and removing the enormous barriers to blockchain development for enterprise companies. “
Sixth on the list is the decentralized exchange project Loopring. Merten says the protocol has undergone a number of major improvements in 2020.
“Loopring upgraded its structure to be an automated market maker or AMM and implemented its own proprietary zk roll-up solution, allowing over 2,025 transactions per second. And the costs are less than a cent each. ”
Fifth is the Synthetix-based asset management protocol dHEDGE (DHT).
“DHEDGE gives you the ability to create synthetic portfolios powered by the Synthethix protocol, allowing anyone to become a virtual unauthorized hedge fund. Individuals or groups can come together to attract capital by offering lower management fees and providing better market performance through portfolio management. ”
Number four is the decentralized oracle network Chainlink (LINK).
“Chainlink’s biggest proposition outside of industry-leading technology is the overwhelming majority of business partners it has built up over the past few years … I am extremely confident that it will reach heights similar to Ethereum’s peaks in 2017 (LINK).”
Uniswap (UNI) is the largest automated market maker in the DeFi space, according to Merten, which ranks third.
“The growing number of liquidity providers on the platform have surpassed many major exchanges, outpacing even the daily volumes of companies like Coinbase, with a wide range of supported tokens and relatively low fees.”
Number two on Merten’s list is Ampleforth (AMPL).
“Think of [Ampleforth] as a central bank that issues new banknotes or Ample tokens when the price rises above a dollar, but does not dilute your wealth through inflation when issuing these new tokens. Ampleforth can do the opposite by slowing the supply when prices drop below a dollar. And its fixed price can usually be adjusted to meet the level of inflation faced by the real US dollar since the protocol began in 2019. For example, the current rate is one dollar and one cent. ”
According to the analyst, Ampleforth presents an interesting use case in the form of stability as people in the DeFi space seek stable assets for collateral or wealth protection.
Top of the list is Ethereum (ETH), which Merten says has great growth potential with minimal risk. He also highlights that all DeFi projects and tokens that are part of the list are on the Ethereum blockchain.
“While preparing for ETH 2.0, the long-term game plan scales to thousands of transactions per second, while at the same time changing the consensus mechanism to proof of stake, which provides significant reductions in energy consumption.