Crypto expert Miles Deutscher shared the trends he is currently trading or following closely, including AI coins.
There are also trends, AI coins that the expert follows…
ZK comes first
The expert believes that all 8 of these narratives have the potential to perform strongly. Deutscher first said, “When it comes to narrative trading, you determine relative strength and bet on it. So, although in some cases these projects may perform against the broader market movement, most altcoins still stick to the overall BTC price action.”
According to the expert, if there is a big Bitcoin rally, it means that the strongest narratives will tend to make the best gains. It also states that in most cases, it will be least affected by price drops, as there is enough demand-side pressure to dampen sales. However, he underlines that each project should be handled individually. Deutscher first draws attention to ZK:
Ahead of the zkSync and StarkNet token releases in conjunction with the upcoming Polygon zkEVM launch, ZK-related protocols are performing strong. There is no denying that ZK is the future of scaling Ethereum. ZK Rollups helps alleviate congestion by ‘bundling’ transactions into batches that run off-chain.
1. ZK
Ahead of the zkSync and StarkNet token releases, in conjunction with the upcoming Polygon zkEVM launch – ZK-related protocols have been performing strongly.
— Miles Deutscher (@milesdeutscher) February 18, 2023
Secondly, it follows LSDs
The second of the trends that the crypto expert follows is LSDs. Liquid staking derivatives allow you to earn returns on crypto assets like ETH while maximizing capital efficiency. Deutscher says:
This trend is currently driven by 2 catalysts. 1. Upcoming Shanghai update. 2. SEC’s regulatory pressure on central staking. LSDs like LDO, FXS and RPL are gaining momentum as Shanghai approaches its upgrade. Total ETH staking will be a key driver as Shanghai will eventually allow for the redemption of staked ETH on the Beacon Blockchain.
2. LSDs
Liquid staking derivatives allow you to earn yield on crypto assets like $ETH, whilst maximising capital efficiency.
This trend is currently being driven by 2 catalysts:
1. The upcoming Shanghai upgrade
2. The SEC's regulatory crackdown on centralised staking— Miles Deutscher (@milesdeutscher) February 18, 2023
Also on the regulatory front, Deutscher says, the tendency by SECs to restrict centralized staking services (like Kraken) is, in my opinion, a huge catalyst for decentralized staking adoption.
Perp DEXs are also trending
Miles Deutscher also watches Perp DEXs. This states that it is one of the strongest performing industries in the last 6 months. In this context, “GMX pioneered this, followed by competitors like GNS, and now newer iterations like VELA.” makes the statement. However, he believes there are still opportunities in this area and notes:
In the long run, other DEX models such as AMMs and order books are likely to start playing a more important role in this area. But at least in the short-to-medium term, oracle-based DEXs like GMX have a distinct UX advantage. Also, you cannot underestimate the brand awareness that these protocols can generate. The GMX and GNS brand identity will likely get them to return in the future if needed.
3. Perp DEXs
This has been one of the strongest performing sectors over the last 6 months.$GMX led the way, followed by competitors such as $GNS, and now newer iterations are coming along, like $VELA.
But, I believe there are still opportunities in this space.
— Miles Deutscher (@milesdeutscher) February 18, 2023
Decentralized stablecoins gain importance
Deutscher also has decentralized stablecoins on its radar. As you follow on Kriptokoin.com, we have recently witnessed the SEC pressure on the BUSD of the central exchange, Binance. The expert says that uncertainty regarding its regulation also remains for other centralized stablecoins such as USDC and USDT. That’s why he states the need for a truly decentralized stablecoin. In this regard, it offers the following recommendations:
There are several promising players in this space, from AAVE and upcoming GHO stability to CRV and CRVUSD, FXS and more. The protocol that develops and effectively integrates the decentralized stablecoin model will be a big winner.
5. Decentralised stable coins
We've recently seen the SEC crackdown on BUSD, and there continues to be ambiguity surrounding the regulation of other centralised stables like USDC and USDT.
The need for a truly decentralised stablecoin is clear.
— Miles Deutscher (@milesdeutscher) February 18, 2023
Finally, the trend of recent times is AI coins
Deutscher is also keeping an eye out for trending AI coins. After ChatGPT became the fastest application in history to reach one million users, rapid investments were made in the AI sector by companies such as Microsoft and Google. The expert explains:
However, the important thing to know here is that AI coins are very early on and most recent price movements have been driven more by speculation than fundamentals. This led to an explosion for AI coins as speculation became widespread.
6. AI
After ChatGPT became the fastest application in history to hit a million users, prompt investments by the likes of Microsoft and Google were made into the AI sector.
This resulted in AI altcoins exploding, as speculation ran rampant.
— Miles Deutscher (@milesdeutscher) February 18, 2023
Crypto projects that Deutscher expects to explode
Meanwhile, Miles Deutscher shared his predictions for 13 crypto projects in late January that will most likely deliver 50-100X growth trend. In this expert share, Sui Network as L1, Sei Network as L1 Blockchain, Celestia (CELT), Fuel Labs, Quai Network, zkSync, StarkWare, Arbitrum, Hermez, LayerZero, Zeta Blockchain, Quadrata Network and Drift Protocol are included.
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