Karl (karl_0x), an altcoin analyst with over 25,000 Twitter followers, shared various developments and predictions that will be important on a monthly basis. Here are the details…
Rising expectation for liquid staking projects
Followed by more than 25,000 users on Twitter, Karl conveyed the important developments and expectations for January in a blog post. First of all, the analyst pointed out that the “season” of liquid staking projects has arrived. For, cryptocoin.com As we have reported, the Shanghai upgrade of Ethereum is getting closer and closer. At this point, major cryptocurrency projects that offer liquid staking services on Ethereum are LDO, RPL, FXS, SWISE, FIS, ANKR. The expert thinks that these coins will maintain their current momentum with the expectation of Shanghai upgrade.
On the other hand, the analyst states that FXS offers the largest annual income ratio (APY) among other liquid staking derivatives. That’s why he says FXS is in an interesting spot and expects the coin’s market share to increase as it is the most attractive choice. In addition, pointing out that FXS recently performed its halving, the analyst underlined that the coin is among the top 5 DeFi protocols in terms of its locked value.
Also, talking about Lido DAO, which is perhaps the most well-known project in terms of Ethereum staking, the analyst says that this coin has won by far in terms of technology and fundamental factors. However, he states that others will definitely catch up with LDO due to the profit rotation. It draws particular attention to FXS and FIS. He also underlines that BTRFLY, which offers liquid staking, will launch a stablecoin, DINERO.
Which unlocked altcoin projects are at risk of liquidation?
In addition, the analyst pointed to the massive unlock on DYDX on February 2, as 105% of the circulating supply will be distributed to investors and team members. “The dYdX team is very likely to issue an announcement before the unlock, in order to reduce selling pressure and frustrate early short sellers,” the analyst says.
On the other hand, Karl refers to the Digital Currency Group. He underlines that DCG holds API3, HBAR, ZEC, FLOW, MANA coins. According to Karl, these tokens are at risk of liquidation due to Genesis, which DCG owes $3 billion to creditors, including $900 million to Gemini Earn.
Launches, updates, halvings…
Apart from that, the analyst stated that the launch of the CRV crvUSD stablecoin will take place in January. The AAVE GHO stablecoin public testnet that took place in January has been confirmed to be a revenue sharing mechanism with AAVE stakers. V3 will also be deployed on Ethereum. Also, Cosmos (ATOM) is on the verge of a major upgrade that will allow smaller chains to take over the security of the Cosmos headquarters in exchange for ATOM.
On the other hand, Karl points to the halving in Litecoin. Although the halving is expected to take place in August, it seems that LTC has historically been bullish before the halving. That’s why analysts have focused on LTC. On the other hand, APE’s BAYC minting will take place on January 18.
AI altcoin projects gain momentum
Karl also touches on artificial intelligence (AI) tokens. Among them, FET ,VITD, NMR, OCEAN, CTXC, PHB are noted. After rumors of Microsoft investing $10 billion in openAI, as well as massive ChatGPT popularity, this narrative resembles the metaverse bull run of late 2021, according to the analyst. It also plans to become a DeFi liquidity hub when SNX v3 is released. This could be a huge source of real return income as Synthetix will essentially be the backbone of the decentralized derivatives landscape.
On January 12, the Bedrock upgrade testnet will lower gas fees and allow the use of ZK proofs. These improvements can make Optimism stand out among other Layer 2 solutions in 2023. A trial period to deploy Uniswap v3 on Starknet will also be important in January. Apart from that, the FTM gas fee earning program, which brought a new source of income for developers, WAVES’s launch of the WIXT coin, FLUX halving on February 4, SKL’s integration of ZK, METIS and AAVE v3’s Metis Andromeda. its deployment; important developments in the future.
