- Analyst Nicholas Merten Says Altcoins Are Poised for a Rally — Aave, Uniswap and Yearn.Finance Are His Top Picks
DataDash host and well-known crypto analyst Nicholas Merten says he is highly bullish on cryptocurrencies for 2022, specifically betting that the altcoin market is about to enter a new “supercycle.”
In a YouTube session, the analyst noted that historically Bitcoin has led the way for altcoins. He observed that altcoins have tended to mirror Bitcoin’s macro price movements — rising when Bitcoin advances and falling when sell pressure on Bitcoin sweeps the market.
Merten argues that while Bitcoin remains the flagship cryptocurrency, market dynamics are shifting and altcoins are beginning to show increasing independence from BTC price action.
He points out that Bitcoin largely remains in uncertain territory even as interest in various altcoins grows. Given that some coins outperformed Bitcoin during the last correction, the strategist says not only major players like Ethereum and Solana should be watched closely ahead of the next rally.
Decentralized finance (DeFi) and Metaverse tokens are two rapidly growing sectors, and the analyst highlights four altcoins he believes have potential for significant appreciation.
Aave (AAVE), Uniswap (UNI), Yearn.Finance (YFI) and Radix (XRD)
Among altcoins, Merten is focused on Aave, Uniswap and Yearn.Finance. The list also includes the layer-1 protocol Radix.
The analyst observes that Aave’s price has staged a notable breakout, which could further strengthen its performance versus Bitcoin. Currently the AAVE/BTC pair is trading within a range supported by a low near 0.005727 BTC.
“If we can break out of this range, it will establish a base for AAVE to likely experience another seismic rally,” he said.
For Uniswap (UNI), Merten anticipates another breakout against BTC. Bulls could push above the downward trendline and open the door for an additional 25% or more versus Bitcoin. He also believes recent developments — such as the launch of an automated market maker on Polygon — contribute to UNI’s strong fundamental outlook.
Yearn.Finance is also on the analyst’s radar. The DeFi protocol’s governance token YFI climbed more than 62% in under two weeks, underscoring renewed momentum in the sector.
Finally, Radix (XRD) is described as an early-stage layer-1 protocol that is gaining traction while other projects rally. Although these types of tokens can be subject to sharp corrections, Merten says XRD is gathering momentum as bulls prepare for the next major wave.