According to him, although Bitcoin is the most valuable digital currency on the market, many investors are focusing on smaller digital assets. After all, they can make bigger profits than BTC in the short term.
As the analyst pointed out, there are some tokens in the decentralized finance market (DeFi) with rapid growth potential. And one of those cryptographic ones is Compound (COMP).
According to Arnold, the lending platform is one of the largest in the DeFi market with a total blocked value (TVL) of $ 9.3 billion.
At the time of writing, the price of Compound is at $ 521 (R $ 2,942) which, to the analyst, seems like an upward trend.
In addition, Arnold pointed out that the recent news that a whale moved 629,000 ETH worth $ 1.3 billion for the protocol after Ethereum’s ATH is extremely positive for the project.
In the last seven days, COMP had a positive price variation of more than 43%.
Yearn Finance (YFI)
Second, the analyst mentioned the Yearn Finance (YFI) project, whose price is likely to rise in the next cycle.
As the analyst noted, YFI is currently the fourth most valuable cryptocurrency, after Bitcoin, Wrapped Bitcoin and Bitcoin BEP2.
The project’s creator, Andre Cronje, recently launched the Coordinape tool. It is a payroll solution for autonomous decentralized organizations (DAOs).
“The price is rising to the right, ready to surpass all-time highs,” said Arnold.
At the time of writing, YFI is currently trading around $ 38,264 (R $ 216,118). In the past seven days, the DeFi token has risen just over 17%.
Finally, the analyst spoke about the Polkadot (DOT) project, one of the Ethereum chain’s most popular rivals.
As Arnold pointed out, Coinbase Ventures, the investment arm of exchange Coinbase, recently announced its support for a layer one blockchain that seeks to bring DeFi into the Polkadot ecosystem.
More precisely, the company invested in Acala and Karura, two solutions for blockchains Polkadot and Kusama, respectively.
In addition, Kraken CEO Jesse Powell recently also supported Polkadot as a project to watch.
“The other hot coin is Polkadot, which is kind of an upcoming Ethereum. There are many other currencies being launched at the top of this network, ”said Powell in a recent interview.
EHe further stated that many developers will migrate their decentralized applications (dApps) from Ethereum to Polkadot in the near future.
At the time of writing, the DOT token is costing around $ 44 (approximately R $ 250). In the last seven days, crypto had a positive variation of 36.7%.
Read also: Cardano may outperform Bitcoin during this high, says analyst
Also read: “Ethereum reaches US $ 10,000 later this year”, says trader
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