In the Trading Bot track, why should you pay attention to BANANA?

Original Title: “My highest conviction altcoin is $BANANA”

Author: Flood Capital

Compiled by: Deep Tide TechFlow

My most favored altcoin is $BANANA. About 4 months ago, I wrote my first in-depth tweet about it when the price was $23. Since then, BTC has increased by +35%, while Banana has surged over 100%, making it one of the few altcoins currently outperforming BTC in the market.

Here are the latest investment cases.

For those unfamiliar with @BananaGunBot, it is generally regarded as the best TG trading bot, currently ranking seventh in daily trading volume. More importantly, they are building order flow and infrastructure to compete with DeFi giants like Uniswap and 1inch.

Despite being just a TG bot last week, their trading volume completed through the Ethereum DeFi front end ranked fourth, with the volume being second!

This is where things get interesting; BG is developing a mature trading terminal web application that will massively expand their potential market.

With over 7% market share solely through Telegram, I expect Banana Gun to start surpassing Cowswap and even 1inch after their web application launches.

The web application will cater to a new group of users looking to trade via wallets like Metamask, providing them with a plethora of new features.

Last week, Banana's trading volume exceeded $365 million, generating $2.3 million in fees, with annualized fees as follows:

• $19 billion in trading volume

• $120 million in fees

40% of the fees will be returned to $BANANA holders, making it one of the most profitable applications in all of DeFi and directly contributing to token appreciation.

The current annual yield for $BANANA is 35%, which means approximately 3 times the distribution of profits! Even applying this to coins with a 5-6 million FDV, the trading price is only 5-6 times. The market is telling us it does not believe these revenues will grow or recur in the long term, but I disagree.

I genuinely believe that Banana's revenue and market share will grow. Over time, I think the market will reassess them, bringing them to the same price as leading DeFi companies like 1inch and Uniswap, or even higher.

Let me explain why.

First, BG has an extremely strong moat on Ethereum. They dominate the sniper bot space for new token launches, being at the top of the block about 90% of the time.

Reinforcing dynamics again:

• More users using Banana for sniping

• Larger bundle/tip sizes

• Winning more first batch bundles

• More users using Banana

Therefore, as long as new tokens continue to launch on Ethereum, Banana will be in a very advantageous position. They also conduct all transactions through their private RPC, making their order flow extremely valuable.

This results in Banana holding 40-60% market share compared to all TG bots on Ethereum, accounting for 7% of total trading volume on Ethereum.

With the launch of the web application, I believe this will further develop, providing Metamask users with a complete on-chain trading terminal with excellent execution.

Banana has won Ethereum and, besides the web application, is also starting to focus more on Solana. Currently, Banana holds only about 2.5% market share among TG bots on Solana, but it is about to launch new SOL products.

Banana hopes to replicate their success on Ethereum, and if they can increase their market share to X level, we could see how much revenue increased last week:

• 10% = +820,000

• 20% = +1.64 million

• 30% = +2.46 million (which would more than double revenue/profits)

Banana Gun's dominance on Ethereum, new Solana bots, and the web app make me very optimistic about its future. It provides excellent exposure to memes (through sniping) and is gradually becoming a new class of protocol (aggregator), with a much higher trading premium compared to TG bots.

• For example - Banana Gun vs 1Inch

• Market Cap = 105 million vs 530 million

• FDV* = 260 million vs 670 million

• Ethereum Market Share = 7.3% vs 17.6%

• 30D Annualized Revenue = 67 million vs 180,000

Banana's current fully diluted value (FDV) is 8.9 million tokens, but 5.5 million tokens are in its treasury, and they continue to burn unlocked tokens from the treasury. I believe it is reasonable to estimate the real FDV at 5-6 million tokens.

Information is hard to find, only obtained 30-day annualized data from ++@tokenterminal++.

In summary, I am super excited about Banana Gun.

• Growing user base, numbers, and fees

• Exciting new products

• Strong moat formed through ETH sniping

• Low-risk investment and good supply structure

• Direct value accumulation for the token

As always, DYOR, this is not financial advice, just sharing my own opinions.