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▲ Solana (SOL), DeFi/AI generated image
Four projects in the Solana (SOL) ecosystem, currently valued lower than Ethereum (ETH) DeFi and with market caps under $1 billion, have been identified as candidates for re-evaluation. It is argued that despite possessing actual revenue, market dominance, and token buybacks, bearish market sentiment is obscuring their business performance.
Lark Davis, host of the crypto podcast The Lark Davis Show, raised the possibility of Solana DeFi being undervalued in an episode on July 5 (local time), citing research by Grayscale. Davis explained that Uniswap is valued at 37 times its revenue, and World Liberty Financial at 17 times. Hyperliquid is approximately 15 times, while some Solana DeFi projects have revenue multiples ranging from 9 to 25 times.
The first candidate presented was Meteora. Davis explained that Meteora has secured approximately 80% market share in a specific sector. Recent weekly revenue exceeded $700,000, marking its highest since February. Annualized revenue is estimated at around $26 million, with a monthly growth rate of 25%. Meteora stakers receive 10% of DLMM revenue in USDC.
Jito and Backpack were also highlighted. Jito's new trading platform, referred to as JTX by Davis, is set to launch perpetual futures and spot trading. 80% of trading fees will be used for token buybacks. Approximately 75% of the total supply has already been unlocked, and new unlocks are expected to largely cease after December this year. Backpack has secured three licenses to operate in 27 European Union countries. The video explained that approximately 83% of European crypto exchanges do not hold such licenses.
Among the four projects, Jupiter (JUP) is the one Davis revealed he actually holds. Jupiter accounts for approximately 90% of the trading volume of Solana's decentralized exchange aggregators. There are no remaining token unlocks, and 50% of protocol fees are used for buybacks. 4 to 5 million JUP are purchased weekly, and 134 million JUP have already been burned. Global universal markets, omnichain trading functionality, and perpetual futures upgrades are also set to be launched.
Davis emphasized that Meteora, Jito, Backpack, and Jupiter all have market caps under $1 billion and possess actual revenue or business models. He argued that the valuation gap between Solana DeFi and similar Ethereum projects, as pointed out by Grayscale, is measurable. However, this assessment is Davis's investment opinion, and he disclosed that he only holds Jupiter among the four projects.
[Key Summary of the Article]
-Lark Davis argued, based on Grayscale's research, that Solana DeFi is undervalued compared to similar Ethereum projects.
-Meteora, Jito, Backpack, and Jupiter have market caps under $1 billion, and individual growth drivers such as revenue, buybacks, and regulatory licenses were presented.
-Davis revealed that he only holds Jupiter, emphasizing its approximately 90% market share and 50% fee buyback structure.
*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. This content should be interpreted for informational purposes only.*
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