Macro guru and former co-head of hedge fund sales in equities and equity derivatives at Goldman Sachs, Raoul Pal, is previewing what type of altcoins could outperform the second-largest crypto asset by market after the Ethereum (ETH) merge.
Pal says that Ethereum’s transition to a proof-of-stake (PoS) consensus mechanism will be positive but that Ethereum layer-1 competitors will outperform due to the head start they enjoy in terms of scalability and affordability.
“My hunch is that when we all wake up tomorrow we will realize that the change to PoS is very positive over time for ETH.
But then people will again realize that there is still a need for cheaper and faster chains and that is where the marginal money will flow.
As these layer-1s are earlier in their network adoption curve, so will generally outperform in a bull market.”
According to crypto data platform Chainalysis, some of the leading layer-1 blockchains include Solana (SOL), Cardano (ADA), Polkadot (DOT), Avalanche (AVAX), Cosmos (ATOM) and Binance Chain (BNB).
The macro guru and investment strategist says that the merge, which was activated early Thursday, will trigger a bullish cycle in decentralized finance (DeFi) and boost the growth of other financial products in the crypto space.
“The establishing of a benchmark yield for Web3 via ETH will also sow the seeds of another huge boom in DeFi, along with rapid growth in structured products and derivatives…”
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
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/YanaBu