Leading altcoin Ethereum is on the agenda again with increasing institutional interest. As traditional financial money flows into the Ethereum ecosystem, crypto expert Vinicius Barbosa has selected two of the best ERC-20 tokens for investment.
While Ethereum shines, these 2 altcoins also stand out as investment opportunities!
Financial giant BlackRock has turned its sights to the tokenization of real-world assets (RWA). For this, BlackRock allocated an initial investment of $100 million, currently held in USDC on Ethereum. Meanwhile, cryptokoin.comAs you follow from, an Ethereum spot ETF will begin trading in Hong Kong on April 30.
This institutional activity could drive higher demand not only for the native token ETH, but also for the entire Web3 and decentralized finance (DeFi) ecosystem built on Ethereum. The market expects capital inflows to increase for relevant cryptocurrencies. Here are two of the best Ethereum-based altcoin projects to invest in this year.
The top altcoin is Aave (AAVE) from DeFi
Aave (AAVE) is the most used, capitalized and liquid lending platform in Ethereum’s DeFi ecosystem. The platform supports 12 other blockchains, creating an active and in-demand space for lending and borrowing ERC-20 tokens. The protocol has a total value locked (TVL) of $10.93 billion. Additionally, AAVE has a market cap of $1.41 billion. This corresponds to a MCap/TVL ratio of 0.15. Therefore, this generally indicates an asset with medium to long-term potential.
With the expected inflow of capital into the Ethereum ecosystem, Aave may emerge as the preferred way for investors to earn returns on ERC-20 tokens through lending or margin trading through borrowing.
Shining in second place is Uniswap (UNI)
Uniswap (UNI) is the first automated market maker (AMM) decentralized exchange. Moreover, it is still the most popular in its segment. Uniswap is the leader in decentralized finance with the highest exchange volume. The protocol has exchange pools that are the most liquid for trading Ethereum tokens. As of this writing, the protocol is two places behind Aave. Additionally, it has the fifth highest TVL in the Ethereum ecosystem. However, governance token UNI has a market cap of $6.08 billion. This means a MCap/TVL ratio of 1.05.
The indicator shows that UNI is currently trading at a fair price based on the total number of tokens deposited into its ecosystem. Therefore, this also means that Uniswap’s price may proportionately follow a future TVL increase that is likely to occur in capital inflows into Ethereum tokens.
The Ethereum ecosystem is a rich place with dynamic capital flows across a diverse protocol and token landscape. It is possible for investors and traders to find different solutions in a permissionless and free market. However, it should also be noted that this field requires advanced knowledge and expertise for investment.
The opinions and predictions in the article belong to the expert and are definitely not investment advice. cryptokoin.com We strongly recommend that you do your own research before investing.
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