GM gents,
I’ve conducted some research to try and identify some promising plays in DeFi protocols. The ranking criteria I used aims to identify potentially undervalued protocols by balancing fundamental strength against tokenomics risk.
It prioritizes protocols that are efficient at generating revenue from their locked capital (Revenue/TVL) and have strong absolute fee generation. This performance is then weighed against valuation metrics (like Revenue/FDV) to see if the protocol is cheaply priced relative to its earnings.
Finally, it penalizes protocols with high dilution risk from upcoming token unlocks. A "gem" is therefore a protocol with strong, efficient earnings, a reasonable valuation, and low risk of future supply inflation.
Here’s the result of this analysis:
Let’s break down the charts for each of them:
Pancake Swap
Long term chart shows a basing pattern, but there’s no trend signal emerging from it yet. My eyes are on a possible long term breakout here, as it would cause a massive advance of 200-300%+ from here.
What to look for here? A rally over $3.14 during July would seal the deal…
Addendum: I overlooked the weekly signal entry, we can position ourselves now and aim for a possible trigger of the monthly trend over time. Over 20:1 reward to risk now.
Raydium
This one is a buy right now, 32:1 reward to risk in the long term.
Very compelling trade.
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