Economist Alex Kruger unveiled his top bets on decentralized finance cryptocurrencies (DeFi) for the new year.
He used his Twitter profile to list his more than 56,000 followers on the six DeFi assets that they may appreciate in 2021.
However, he took the opportunity to warn about regulatory issues surrounding this market.
DeFi token options
As Kruger pointed out, his main bets are on Uniswap (UNI), Token Maker (MKR) and the DeFi Compound (COMP) loan platform.
In addition, the economist is also excited about the Aave loan protocol (AAVE), the Synthetix derivative liquidity protocol (SNX) and the DeFi yearn yield aggregator. finance (YFI).
According to him, these are the main DeFi assets on the market today.
However, although Kruger believes that the DeFi space is producing good assets, he warns that regulations could hamper the growth of the sector.
“DeFi faces potential regulatory burdens that other tokens don’t. This generates short-term headwinds. Institutional investors are not yet able to invest in DeFi directly. DeFi assets are not available to investors on PayPal or Circle, ”he noted.
Despite this, the economist is confident that the DeFi protocols will overcome short-term regulatory obstacles:
“Regulatory charges and access limitations are equivalent to a ‘cap’ on DeFi. This cover, these entry barriers are temporary. Once withdrawn, assets should outperform dramatically as new money comes in. The technology is revolutionary ”, he highlighted.
Secure altcoin options
In contrast, until that happens, Kruger believes that the DeFi market will remain dominated by native assets.
According to the economist, these crypto assets benefit greatly from the gains of BTC and ETH. After all, investors recycle part of their unexpected gains in other assets.
“For those looking for alternatives to BTC, the safest bets are LTC, BCH and ETH, as the SEC will not label them as bonds. Other tokens do. ”
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