Crypto YouTuber and Analyst Nicholas Merten analysed one of his top Cryptocurrency picks that he believes has the chance to do 4x in the month of February.
Uniswap is a decentralized cryptocurrency exchange which facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts.
An example of an automated market maker (AMM), Uniswap launched in November 2018, but has gained considerable popularity this year thanks to the DeFi phenomenon and associated surge in token trading.
Uniswap aims to keep token trading automated and completely open to anyone who holds tokens, while improving the efficiency of trading versus that on traditional exchanges.
Nicholas believes Uniswap is going to define the DeFi space in the long run going forward throughout 2021-2022. The liquidity volume at Uniswap is currently $3.47B which is an all time high and its weekly average trading volume has passed the previous high, now over $5B and has been maintained for three consecutive weeks.
Uniswap has a fully diluted market cap of $11.38B while its actually market cap stands at $3.24B, Nicholas also believes the Fundamentals of Uniswap will continue to grow as more people use it.
We have to get ourselves in the context of understanding that this altcoin cycle is going to see valuations much higher ranges when we are talking about market cap than we have previously seen in the previous cycles.Nicholas Merten
Nicholas compared how Uniswap ranks among Top Defi Tokens by Market Capitalization.Chainlink(LINK) has a market cap of $9.7B, Wrapped Bitcoin (WBTC) $3.7B, Aave (AAVE) $3.1B and SYNTHETIX (SNX) $1.9B among others while Uniswap (UNI) market cap is $3.24B, Nicholas says “… as Chainlink continues to grows, valuations (of DeFi space) continues to expand, I think that UNI again could easily maintain this level [after coming through the ranks] or possibly outpace the growth of Chainlink here in the next coming days”.