- Two trends will attract investors’ attention during the next altcoin bull cycle, while Ethereum could be outperformed.
- Uniswap is delivering a strong performance compared to the Bitcoin chart, with v3 release set to be a tipping point.
Despite the current downtrend in the crypto market, YouTuber Nicholas Merten aka DataDash believes altcoins are headed for a “secondary bull cycle.” The YouTuber predicts that the DeFi sector and non-fungible tokens (NFT) will dominate the rally, and is targeting the period between April and May for a takeoff.
Predicting an underperformance for Bitcoin and Ethereum, Merten added that low- and mid-cap altcoins are predestined to post big gains. His top coins include CAKE and UNI, the tokens of the PancakeSwap and Uniswap protocols, respectively.
The first decentralized exchange has gained a lot of attention in recent months alongside the emergence of the Binance Smart Chain ecosystem. The platform has absorbed some of Ethereum’s market share while quite some users have opted to migrate to blockchains with lower fees.
Looking at the all-time chart for CAKE against Binance’s cryptocurrency BNB, Merten stated that the altcoin shows “typical behavior” of building support to take a second leg up. He recommended investors to keep their eyes on CAKE’s trading volume over the next few days in order to get a sense of the direction the altcoin will take. Merten added:
I’m not even talking about the fundamentals, but we do know that DeFi is broadly big. People are curious about the future of Ethereum as a layer one platform, there will be alternative sites that will gain traction in this market.
DeFi shows strong fundamentals with Uniswap taking the lead
Uniswap is a Merten favorite as the Uniswap Labs team prepares to launch the third iteration of the decentralized exchange. UNI is one of the “opportunities that will lead the market,” according to the YouTuber. Exploring UNI’s all-time chart against BTC, two “clear bottoms” can be seen in November and December 2020.
And as Merten said, this phase of consolidation drove UNI to new highs. The altcoin is now once again in such a phase of consolidation, with a strong catalyst on the horizon which will have a positive impact on performance.
The release of Uniswap v3, which is coming out very soon, that will be your real inflection point to really push prices higher.
— Uniswap Labs 🦄 (@Uniswap) March 22, 2021
The YouTuber then added blockchain Stacks to his list, a platform that allows its users to build Bitcoin related dapps. Calling it an “exciting” project, he stated that there is a high demand for DeFi built on Bitcoin. Of all the projects trying to achieve this, Merten believes that only Stacks is succeeding.
Comparing the performance of STACKS against BTC, he stated that the altcoin is breaking out of a sideways movement trend and is poised to break through resistance and reach new highs. He then added that the STACKS chart is “perfect” with no resistance points.
In the NFT sector, Rarible (RARI) is at the top of the list with altcoins like Enjin showing good performance against BTC. Merten believes that the euphoria over this type of token will be beneficial for this sector and could impact decentralized finance protocols in general.