I wonder why anyone is still holding HYPE nowadays.
Here are my reasons for not doing so and why I believe there are much better opportunities out there.
Right now, the market isn't seeing it, but sooner or later it will, this happens every cycle.
The narrative that blew up in the previous cycle usually underperforms in the next one because it gets oversaturated.
This doesn't mean no perp DEXs will do well, but only a few will.
That’s why the only DEX I’m betting big on is
@TxFlow_L1 , I think it has the most upside potential.
Two cycles ago, the absolute craze was NFT gaming.
In the last cycle, NFT games did terribly, but DEXs did extremely well.
So, what will be the top narrative this cycle? We're already seeing clues
Looking at HYPE, it's FDV is $86B, and over the last 30 days, it generated $65M in fees.
They use that revenue for token burns.
You’ve probably heard people say HYPE burns a ton of tokens, but in reality, they’ve only burned 5% of the total supply.
Compare that to PUMP: $55M in fees over the last 30 days, 50% used for buybacks, and 17% of the total supply already burned.
PUMP’s model seems way superior to me because keeping half for the treasury gives them the capital to expand.
Right now, it’s a launchpad, a social network, and a swap where you can trade tokens from other platforms, and they’ll likely add perps soon.
Yet, its FDV is only $3.5B. That’s a massive gap for two protocols generating almost the same revenue.
If you look at DefiLlama revenue, other projects like Stonk and Pons are burning tokens at an absolute crazy rate.
That’s why I believe the dominant narrative of this cycle will be launchpads and their ecosystem derivatives: tokenized equities, memecoins, swaps, and new emerging projects.
Most DEX volume actually comes from launchpad tokens.
Tokens like Pons or Stonk have already pumped hard, but given their metrics, they are still undervalued, and new projects will surely pop up going from zero to $1B+.
If you want to trade this narrative, I recommend doing it on
@fomo .
fomo.family/r/Fortuneenc
The UX is super smooth, and there’s a good chance they’ll drop a massive airdrop.
In conclusion, it's always better to follow the money rather than the narrative, because the narrative adapts to wherever the money goes.
I recommend going to DefiLlama and checking for yourself, the money these projects are moving is absolutely insane.