Original Author: BitMEX
ETH recently broke through $2,500 unexpectedly. As we previously emphasized, the ETH market has clearly entered a trend reversal stage, and a new Altcoin season is gradually becoming apparent. So, if you missed the previous rally, which coins should you pay attention to next? Don't worry, this article will list several potential coins worth considering for the next stage. Arthur Hayes also clearly stated in his latest podcast that the "Altcoin season" has officially begun, and focusing on coins with solid fundamentals is the key. How exactly can we judge the potential of these coins? We've provided three hardcore indicators:
Three Core Indicators of Coin Fundamentals
When analyzing coins, besides looking at price, you must also look deeply at these three indicators:
1. Real User Scale: Does the protocol have truly active users?
2. Sustainable Profit Model: Are users actually paying for the service, rather than purely speculating?
3. Token Value Capture Mechanism: Can the protocol's revenue directly reflect in token value?
Let's now look at the performance of several coins:
1. Hyperliquid ($HYPE): Decentralized Perpetual Contract Exchange with Institutional-Level Performance
In the past 30 days, Hyperliquid has repurchased $37 million worth of $HYPE. Dashboard: https://data.asxn.xyz/dashboard/hl-buybacks
Hyperliquid has quickly grown into a top decentralized perpetual contract trading platform, with daily trading volume exceeding $1 billion, 145 trading pairs, and over 200,000 active users.
Hyperliquid uses the HyperBFT consensus mechanism specifically optimized for high-frequency trading, with a Layer 1 performance that can process up to 100,000 transactions per second, providing extremely high security and performance for decentralized trading.
Hyperliquid's main revenue comes from trading fees, including 0.01% Maker fees and 0.035% Taker fees, forming a stable and real revenue source.
More importantly, Hyperliquid's way of rewarding token holders is very clear:
54% of fee income is used to repurchase and burn HYPE tokens
Approximately 26% deflation rate annually
46% of fees are distributed to the HLP liquidity pool
Annual staking rewards of about 2.5%
Token holders enjoy governance voting rights
As trading volume increases, token supply continuously decreases, creating a positive value appreciation cycle.
2. AAVE ($AAVE): Benchmark in DeFi Lending
In the past 30 days, AAVE has repurchased over $4 million worth of $AAVE. Dashboard: https://aave.tokenlogic.xyz/buybacks
AAVE is currently deployed on 14 different chains, with a total locked value exceeding $5 billion, demonstrating real user demand far beyond speculation.
AAVE's revenue sources are diverse and stable:
Lending interest income
Lending interest spread income
Flash loan fees
Liquidation fees
AAVE token holders can obtain the following benefits by staking in the Safety Module:
Protocol fee dividends (currently around 4.63% annual yield)
Deflationary effect from buyback and burn
Governance rights for platform risk control and development direction
This design allows token holders to both secure the protocol and fully share the platform's growth dividends.
3. Pendle ($PENDLE): Pioneer in Yield Trading
Pendle distributes 3% of fee income and yield boost to $PENDLE staking users. Dashboard: https://app.pendle.finance/vependle/overview
Pendle innovatively tokenizes and trades future yields. In 2024, user scale grew by 400%, and TVL increased 20-fold, demonstrating 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 from expired principal/yield tokens
Token holders obtain direct economic benefits through the vePENDLE staking mechanism:
80% of fees from voting-supported pools are distributed
Liquidity mining rewards can be increased by up to 250%
Governance rights for the protocol's future development direction
Conclusion
Even if you missed the previous market trend, focusing on Altcoins with solid fundamentals can still help you take the initiative in the next market trend. Whether it's Hyperliquid's liquidity-driven mechanism, AAVE's leading position in DeFi lending, or Pendle's innovative model in yield trading, they all have significant user bases, stable profit models, and clear token value capture designs. As Arthur Hayes said, the kings of the next market cycle may be those Altcoins with solid foundations and strong profitability.
