Identifying Potential Altcoins Worth Investing in for the Next Phase
This article is sourced from a piece by BitMEX, organized, translated, and written by odailynews.
(Background Summary: Arthur Hayes: The Altcoin Season is Approaching! Focus on the Ambition of HYPE’s 50% Monthly Increase)
(Background Information: Partner at DWF Labs: Preparing to Acquire Multiple Altcoins, Planning to Form a Strategic Reserve)
Recently, ETH has strongly broken through the $2,700 mark, catching many by surprise. As we previously emphasized, the ETH market has clearly entered a trend reversal phase, and a new altcoin season is gradually becoming evident.
So, if you missed the earlier price surge, which coins should you focus on next? Don’t panic; this article will detail several potential altcoins worth investing in for the next phase. Arthur Hayes also stated in the latest podcast that the “altcoin season” has officially begun, and focusing on coins with solid fundamentals is key. How can we specifically assess the potential of these coins? We provide three hard-core indicators:
Three Core Indicators of Coin Fundamentals
When analyzing a coin, in addition to price, it is essential to delve into these three indicators:
- Real User Scale: Does the protocol have genuinely active users?
- Sustainable Profit Model: Are users truly paying for the service, rather than purely speculating?
- Token Value Capture Mechanism: Can the protocol’s revenue be directly reflected in the token’s value?
Next, let’s take a closer look at the performance of several coins:
1. Hyperliquid ($HYPE): A Decentralized Perpetual Contract Exchange with Institutional-Level Performance
In the past 30 days, Hyperliquid has repurchased a total of $37 million in $HYPE. Dashboard: https://data.asxn.xyz/dashboard/hl-buybacks
Hyperliquid has rapidly grown into a leading decentralized perpetual contract trading platform, with daily trading volumes exceeding $1 billion, offering 145 trading pairs and over 200,000 active users.
Hyperliquid employs a HyperBFT consensus mechanism optimized for high-frequency trading, with Layer 1 performance capable of processing up to 100,000 transactions per second, providing high security and performance guarantees for decentralized trading.
The primary revenue for Hyperliquid comes from trading fees, including a Maker fee of 0.01% and a Taker fee of 0.035%, forming a stable and genuine revenue source.
More importantly, Hyperliquid has a clear mechanism for rewarding token holders:
- 54% of fee income is used for repurchasing and burning HYPE tokens.
- The annual deflation rate is approximately 26%.
- 46% of fees are allocated to the HLP fund pool.
- The annual staking reward is about 2.5%.
- Token holders enjoy governance voting rights.
As trading volumes increase, the token supply continues to decrease, creating a positive feedback loop for value appreciation.
2. AAVE ($AAVE): A Benchmark in the DeFi Lending Space
In the past 30 days, AAVE has repurchased over $4 million in $AAVE. Dashboard: https://aave.tokenlogic.xyz/buybacks
AAVE is currently deployed on 14 different chains, with a total locked value exceeding $5 billion, demonstrating a genuine user demand far exceeding speculation.
AAVE’s revenue sources are diversified and stable:
- Lending interest income
- Lending spread income
- Flash loan fees
- Liquidation fees
AAVE token holders can earn the following benefits through the Safety Module:
- Protocol fee dividends (currently an annualized return of about 4.63%)
- The deflationary effect from repurchases and burns
- Governance rights over platform risk control and development direction
This design allows token holders to secure the protocol while fully sharing in the platform’s growth dividends.
3. Pendle ($PENDLE): A Pioneer in Yield Trading
Pendle allocates 3% of yield fees and yield enhancements to $PENDLE stakers. Dashboard: https://app.pendle.finance/vependle/overview
Pendle innovatively realizes the tokenization and trading of future yields, with user scale expected to grow by 400% in 2024 and TVL to increase 20-fold, reflecting excellent product-market fit.
Pendle’s revenue channels are clear and sustainable:
- AMM pool trading fee income
- 3% fee income from tokenized yield trading
- Fees after maturity of principal/yield tokens
Token holders receive direct economic benefits through the vePENDLE staking mechanism:
- 80% of fees from supported pools are distributed as dividends
- Liquidity mining rewards can increase by up to 250%
- Governance rights over the protocol’s future development direction
Conclusion
Even if you missed the earlier market trends, focusing on altcoins with solid fundamentals now can still allow you to take the initiative in the next wave of market trends. Whether it’s Hyperliquid’s liquidity-driven mechanism, AAVE’s leading position in the DeFi lending space, or Pendle’s innovative approach in yield trading, they all exhibit significant user bases, stable profit models, and clear token value capture designs. As Arthur Hayes mentioned, the champions of the next market cycle may well be those altcoins with solid foundations and strong profitability.
