Successful crypto analyst Tyler Swope says that a number of automated market makers ((Automated Market Maker (AMM)) will shine in the DeFi market in 2021. Also, the analyst points out 3 altcoins he believes will explode.
Tyler Swope: the Black Hole altcoin is quietly gaining power
Emerging as a rival to the traditional market maker model, the AMM model is used by decentralized exchanges. The AMM solution, which completely changes the board structure in the traditional exchange structure, eliminates the limit order system thanks to the liquidity pools managed by algorithms. AMMs are actually smart contracts that make it easier for investors to trade cryptocurrencies without the need for complex order books.
AMM is the technology that powers several popular decentralized exchanges that emerged this year under the leadership of Uniswap. Exchanges like Uniswap, SushiSwap, Curve, and Balancer are actively using the AMM solution. Tyler Swope says he has followed two DeFi platforms that have evolved in the past 30 days despite Bitcoin’s withdrawal. The analyst believes the Black Hole Swap is quietly gaining power and will revolutionize the AMM space. Tyler Swope adds the following to his comments on the subject:
SO WHAT DOES BLACK HOLE DO? AMM THE FIRST TO PROCESS TRANSACTIONS OVER THE POOL LIQUIDITY… HOW DOES IT DO THAT? USING MORE MATERIAL ON CIRCULATION PLATFORMS SUCH AS PROTOCOL, COMPOUND, AAVE AND OTHERS.
Tyler Swope: Perpetual Protocol and Balancer altcoins to watch
Black Hole is a product of Hakka Finans, a decentralized financial ecosystem. According to CoinGecko, Hakka Finance’s token, HAKKA, is trading at $ 0.078355 at the time of writing, and has increased by 81.4% last month. Tyler Swope also calls the Perpetual Protocol, which enables AMM-backed continuous futures contracts, a project to follow in the coming months.
According to CoinGecko, the protocol’s native token, PERP, is trading at $ 1.32 at the time of writing and has increased by 54.3% in the past 30 days. Tyler Swope also says that Balancer (BAL) is one of his top picks as it can have more than two tokens in a liquidity pool as opposed to Uniswap. According to CoinGecko, Balancer’s management token BAL was launched in June and is trading at $ 11.07 at the time of writing.
Tyler Swope explains which projects investors should look into
Tyler Swope points out that Balancer has established several influential partnerships in the DeFi space, including teaming with PieDAO, the decentralized autonomous organization for liquidity pools. Tyler Swope says that anyone investing in the risky DeFi market should look for projects with solid roadmaps, unique use cases, and support within the industry. Tyler Swope adds the following to his comments on the subject:
I LOOK AT DEFI COLLABORATIONS. EXAMINING THE FOUNDATIONS. WHAT MAKES SOMETHING NEW AND EXCITING? SOLID ROAD MAPS, UNIQUE USE SITUATIONS AND PROJECTS SUPPORTED IN THE SECTOR …