Top Trader Says Four Ethereum-Based Altcoins Could Outperform in Next Crypto Rally – But There’s a Catch

A widely followed crypto strategist believes that four altcoins running on the Ethereum (ETH) network could outperform the broader crypto markets in the next leg up.

Psuedonymous analyst Altcoin Sherpa tells his 194,500 Twitter followers that he has his radar locked on cross-chain bridge protocol Stargate Finance (STG).

While the crypto trader is bullish on STG, he believes that it could pull back to as low as $0.72 before surging. Although the crypto trader thinks that STG has a good chart, he says he’s considering to accumulate the altcoin at lower prices.

“STG: chart looks good + they just did a $3 billion raise and have the layer zero token coming out soon. Should increase overall value proposition + volume on it.”

Source: Altcoin Sherpa/Twitter

At time of writing, STG is trading for $0.79.

Altcoin Sherpa is also keeping an eye on the governance token for the Frax Share (FXS) stablecoin protocol.

“FXS: just a really good decentralized finance project, look into it.” 

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Source: Altcoin Sherpa/Twitter

Next up is layer-2 protocol Arbitrum (ARB), which he thinks could still see lower prices even though he believes it is already trading below its fair value.

“ARB: undervalued in my opinion in terms of overall usage with total value locked, overall trading volume, etc compared to its competitors.” 

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Source: Altcoin Sherpa/Twitter

At time of writing, ARB is worth $1.19.

The last ETH-based altcoin on the trader’s list is Liquity (LQTY), a decentralized borrowing protocol that allows users to take loans using ETH as collateral. According to Altcoin Sherpa, he’s waiting to see how LQTY reacts after Ethereum launches the Shanghai update, an event that will allow stakers to withdraw their ETH stacks for the first time.

“LQTY: we will see what happens with Shanghai, other LSD [liquid-staking derivatives] could be good too.”

At time of writing, LQTY is trading for $2.32.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia


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