ETH broke through $2,700 last night, catching many by surprise. As we previously emphasized, the ETH market has clearly entered a trend reversal phase, and the new Altcoin season is gradually becoming apparent. So, if you missed the previous rally, which coins should you focus on next? Focusing on coins with solid fundamentals is the key. How exactly can you determine the potential of these coins?
VX：TZ7971
When analyzing coins, besides looking at price, you must delve into these three indicators:
1. Real user scale: Does the protocol have truly active users?
2. Sustainable profit model: Are users actually paying for the service, rather than purely speculating?
3. Token value capture mechanism: Can the protocol's revenue directly reflect in token value?
Performance of Several Coins
Hyperliquid ($HYPE): Institutional-grade Decentralized Perpetual Contract Exchange
Over the past 30 days, Hyperliquid has repurchased $37 million worth of $HYPE.
Hyperliquid has rapidly grown into a top decentralized perpetual contract trading platform, with daily trading volume exceeding $1 billion, 145 trading pairs, and over 200,000 active users.
Hyperliquid uses the HyperBFT consensus mechanism specifically optimized for high-frequency trading, with a Layer 1 performance that can process up to 100,000 transactions per second, providing extremely high security and performance for decentralized trading.
Hyperliquid's main revenue comes from trading fees, including 0.01% Maker fees and 0.035% Taker fees, forming a stable and real revenue source.
More importantly, Hyperliquid's way of rewarding token holders is very clear:
54% of fee revenue used for HYPE token buyback and burn
Approximately 26% deflation rate annually
46% of fees distributed to HLP liquidity pool
Annual staking rewards of about 2.5%
Token holders enjoy governance voting rights
As trading volume increases, token supply continuously decreases, creating a positive value cycle.
AAVE ($AAVE): Benchmark in DeFi Lending
Over the past 30 days, AAVE has repurchased over $4 million worth of $AAVE.
AAVE is currently deployed on 14 different chains, with a total locked value exceeding $5 billion, demonstrating real user demand far beyond speculation.
AAVE's revenue sources are diverse and stable:
Lending interest income
Lending interest spread income
Flash loan fees
Liquidation fees
AAVE token holders can earn through the Safety Module staking:
Protocol fee dividends (currently around 4.63% annual yield)
Deflationary effect from buyback and burn
Governance rights for platform risk control and development direction
This design allows token holders to both secure the protocol and fully share the platform's growth dividends.
Pendle ($PENDLE): Pioneer in Yield Trading
Pendle distributes 3% of yield fees and yield rate boost to $PENDLE staking users.
Pendle innovatively tokenized and traded future yields, with user scale growing 400% and TVL growing 20 times in 2024, 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 gain direct economic benefits through the vePENDLE staking mechanism:
80% of fees from voting-supported pools distributed
Liquidity mining rewards boosted up to 250%
Governance rights for the protocol's future development
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 cycle. Whether it's Hyperliquid's liquidity-driven mechanism, AAVE's leading position in DeFi lending, or Pendle's innovative yield trading model, they all have significant user bases, stable profit models, and clear token value capture designs. The king of the next market cycle may be those Altcoins with solid foundations and strong profitability.
