Original author: BitMEX
ETH recently broke through $2,500, catching many people off guard. As we have emphasized before, the ETH market has clearly entered a trend reversal phase, and a new altcoin season has gradually become clear. So, if you missed the previous rally, which currencies should you focus on next? Dont panic, this article will give you a detailed list of several potential currencies worth buying in the next stage. Arthur Hayes also made it clear in his latest podcast that the altcoin season has officially begun, and focusing on currencies with solid fundamentals is the way to go. How do you judge the potential of these currencies? We have given three hard-core indicators:
Three core indicators of currency fundamentals
When analyzing a currency, in addition to looking at the price, you must also look at these three indicators in depth:
1. Real user scale: Does the protocol have real active users?
2. Sustainable profit model: Are users really paying for the service, rather than just hype?
3. Token value capture mechanism: Can the protocol’s revenue be directly reflected in the token value?
Next, let’s take a closer look at the performance of several currencies:
1. Hyperliquid ($HYPE): A decentralized perpetual swap exchange with institutional-grade performance
In the past 30 days, Hyperliquid has repurchased a total of $37 million of $HYPE. Dashboard: https://data.asxn.xyz/dashboard/hl-buybacks
Hyperliquid has rapidly grown into a leading decentralized perpetual contract trading platform, with a daily trading volume exceeding US$1 billion, 145 trading pairs and more than 200,000 active users.
Hyperliquid uses the HyperBFT consensus mechanism optimized for high-frequency transactions. Layer 1 has powerful performance and can process up to 100,000 transactions per second, providing extremely high security and performance guarantees for decentralized transactions.
Hyperliquids main income comes from transaction fees, including Maker fees of 0.01% and Taker fees of 0.035%, forming a stable and real source of revenue.
More importantly, Hyperliquid’s way of giving back to token holders is very clear:
54% of the fee income is used to repurchase and destroy HYPE coins
The annual deflation rate is about 26%
46% of the handling fee is allocated to the HLP fund pool
Annual staking reward is about 2.5%
Coin holders have governance voting rights
As trading volume increases, token supply continues to decrease, creating a positive cycle of rising value.
2. AAVE ($AAVE): The benchmark in DeFi lending
In the past 30 days, AAVE has repurchased more than $4 million of $AAVE. Dashboard: https://aave.tokenlogic.xyz/buybacks
AAVE is currently deployed on 14 different chains with a total locked value of over $5 billion, demonstrating real user demand that far exceeds the hype.
AAVEs revenue sources are diverse and stable:
Interest income from loans
Interest income from lending
Flash loan fees
Clearing Fee
AAVE holders can earn the following benefits through staking the Safety Module:
Protocol fee dividend (current annualized return is about 4.63%)
Deflationary Effects of Buyback and Destruction
Governance over platform risk control and development direction
This design allows coin holders to fully share the platforms growth dividends while ensuring the security of the protocol.
3. Pendle ($PENDLE): A pioneer in income trading
Pendle distributes 3% of the revenue fee and yield markup to $PENDLE staking users. Dashboard: https://app.pendle.finance/vependle/overview
Pendle innovatively realizes the tokenization and trading of future earnings. In 2024, the user base will increase by 400% and the TVL will increase by 20 times, reflecting excellent product-market fit.
Pendles revenue pipeline is clear and sustainable:
AMM pool transaction fee income
3% commission income from tokenized revenue transactions
Fees after principal/revenue tokens expire
Token holders gain direct economic benefits through the vePENDLE staking mechanism:
80% of the transaction fee for voting in support pool will be distributed as dividends
Liquidity mining income increased by up to 250%
Governance over the future direction of the protocol
Conclusion
Even if you miss the previous market, focusing on altcoins with solid fundamentals can still take the initiative in the next wave of market trends. Whether it is Hyperliquids liquidity-driven mechanism, AAVEs leading position in the DeFi lending field, or Pendles innovative model in the field of yield trading, they all have a significant user base, a stable profit model, and a clear token value capture design. As Arthur Hayes said, the kings of the next market cycle may be those altcoins with solid foundations and strong profitability.
