New Class of Altcoins Are Ready for Lift-Off, According to Crypto Trader Tyler Swope
Crypto analyst and influencer Tyler Swope says he believes a new hot subsector is on the verge of taking over the crypto markets.
Swope tells his 236,000 YouTube subscribers that the next group of altcoins set to rally after the decentralized finance (DeFi) and non-fungible token (NFT) waves took over this winter and spring, are decentralized autonomous organization (DAO) projects.
“First DeFi coins had the hype. Then it was NFT cryptos. DAO altcoins are the next hype and are going to surge.”
DAOs operate in such a way that protocol upgrades are voted upon and decided by token holders.
The cryptocurrency influencer points out that the total value locked (TVL) in DAOs was a little more than $55 million about nine months ago, and has now swelled by about 1,800%.
“As of last August, DAOs TVL was just over $55 million. Through the nine months to today, DAO TVL has been growing and is now settling at just under $1 Billion.”
Swope reasons that given the precedent set by DeFi, DAO altcoins will surge as the two subsectors move in tandem.
“…DeFi and DAOs go hand in hand. Thus in my opinion, TVL in DAOs is going to have its breakout this year. Because almost every DeFi protocol is moving towards the DAO model…”
The YouTuber says one of his favorite DAO-based project is the domain-specific rollup Habitat (HBT). A rollup reduces fees and congestion on the Ethereum blockchain by aggregating transactions off-chain.
Per Swope, the main advantage of Habitat over other rollups is that it cuts fees by over 90% and improves transaction speeds substantially.
“Habitat is creating a rollup that is domain and application specific… What does that mean!? Well, each domain is sovereign, DAO or application specific. They host their own nodes for transactions, votes, governance and the like, which means these are easily scalable, low gas fees (96% cheaper) with almost instant speed.”
Swope also mentions the DAO creation and maintenance platform Aragon (ANT), describing it as ‘one of the most popular’ projects in the subsector.
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