Deep research leads to excess returns

A large contingent of the ETH crowd shift back focus on how we can scale the L1 and not leak all of this value to rollups.

Everyone is repeating this it is no longer really “alpha”.

ETH’s entire thesis now comes down to “the global proof verification layer & money”.

Banana Gun offered a strong fundamental thesis as cash flow generating picks-and-shovels of memecoin mania, with growth potential as crypto mobile and trading terminal.

Banana Gun was emerging as the leader, and at the time, BANANA was undervalued based solely on a zero-growth dividend discount model. When accounting for moderate growth assumptions, $65 looked like an attainable target. On Jul-19, BANANA smashed through our bull scenario on the heels of a Binance listing before temporarily retracing.

Given their liquidity network effects, DEXs have historically been valued at a premium relative to front-ends. And intuitively, this makes sense. DEXs are a much more defensible business model at scale.

However, this may be changing.

Jupiter – Solana’s leading DEX aggregator – is now valued at 8.7 times Raydium, despite capturing a fraction of the value.