These DeFi tokens are about to break out, according to KOL Nicholas Merten

Market analyst Nicholas Merten expects altcoins to rebound in the decentralized financial sector (DeFi).

In a copy To update He recently said the entire DeFi sector was poised to break out of all-time highs.

“I think this is a broader trend in the crypto space. And there are plenty of other games in DeFi, not just in the Ethereum ecosystem, but in the broader crypto space that will do well. “

Merten noted that DeFi dominance over the entire crypto market has recently returned to its previous highs of May 2021, suggesting a potential hit.

“And, as has been observed again and again, DeFi will set a new ATH much higher when returning and visiting the highs, of course the dominance rate will increase by a few percentage points.”

DeFi’s current dominance of the overall market is 6.5%, and Merten is expected to grow to 8% or 8.5% in the coming weeks or months.

DeFi capitalization. Source: Nicholas Merten

He looks at the Uniswap (UNI) decentralized exchange, which rose over 23% on Sunday and is trading at $ 22.4.

The recent price and volume increase from UNI shows Merten that not only UNI but the DeFi sector in general could heat up.

“This is one of the biggest leaps in the crypto space and one shouldn’t forget that it’s not just about price but also about volume.

It can be seen that almost a month’s sell-side pressure on USD or BTC pairs has been removed. “

UNI / USD. Source: Nicholas Merten

Finally, Merten highlighted the Decentralized Lending Protocol (COMP), which could break out after doubling against BTC in 2021.

“I see COMP as one of those blue-chip DeFi projects that has proven itself. And so it has been twice as efficient as Bitcoin since the beginning of the year.

It starts to form higher lows here, a constant resistance where I think a breakout might start. “