9 projects with huge long-term development potential

9 high-potential projects with long-term growth

Original title: Accumulation thesis: 9 projects with immense long-term growth potential.

Original author: Stacy Muur

Original source: twitter

Translation: Kate, Marsbit

• Revival trend in the social track, what is special about the star project CyberConnect?
• Vertical Integration of DEX Vertex Protocol Project Analysis How to Improve Asset Pricing and Capital Efficiency?
• Risk and return coexist, taking stock of 9 potential projects worth long-term attention.

Note: This article is from @stacy_muur Twitter, and the original tweet content is organized by MarsBit as follows:

#1 – @fraxfinance, $FXS

Products:

• $FRAX – Algorithmic stablecoin

• FraxLend – Lending protocol

• FraxSwap – DEX

• frxETH – Liquidity staking solution

• Fraxchain – Hybrid EVM compatible L2 rollup (upcoming).

Current metrics:

• Total Value Locked (TVL): $800 million

• frxETH – According to @DefiLlama data, the 4th ranked liquidity staking asset

• $FRAX – 2nd ranked algorithmic stablecoin by TVL

• Annual revenue: $1.6 million;

• FXS staked: >52% of market cap

• Market cap: $440 million.

Growth catalysts:

• frxETH adoption: Optimized yields + sfrxETH added to @AaveAave + frxETH v2

• Fraxchain – a hybrid rollup, to be released in Q4 2023

• FRAX v3 will enhance resistance to fiat decoupling, making it harder to censor.

Risks:

• Smart contract risk

• $FXS buyback at $4-5 → Loss limited to $4-5 for FXS.

Potential returns: FXS ATH price – $35 (6 times the current price).

Investment timeframe: 6-12 months.

Disclosure: I have a medium-sized position in $FXS with an average entry fee of $6.28.

# 2 – @MakerDAO $MKR – Protocol behind stablecoin $DAI.

Current metrics:

• TVL: $5.1 billion;

• Top-1 CDP protocol;

• Annual revenue: $114 million;

• Valuation: $1.23 billion.

Growth catalysts:

• Smart Burn Engine proposal to restart buyback program;

• RWA drives fee growth: Over 400% fee growth since May;

• sDAI recycling: Deposit sDAI → Borrow other stablecoins at lower rates → Buy more DAI → Repeat.

Risks:

• Risks of smart contracts;

• a16z and LianGuairadigm transferring funds to CEX → spreading rumors.

Potential returns: $MKR ATH price – $4270 (4 times the current price).

Investment period: 6-12 months.

Disclosure: I do not have a position in $MKR and I am waiting for a good entry price around $700.

#3 – @optimismFND, $OP – Optimistic Rollup

Current indicators:

• TVL: $861 million

• Active users (average 30 days): >100,000

• Top protocols: @VelodromeFi, @synthetix_io

• Market cap: >$1 billion

Growth catalysts:

• OP Stack: Binance OP, Zora, Adventure Gold, and Gitcoin announced plans to launch L2 rollup using OP Stack;

• Worldcoin issuance;

• @RiscZero and @o1_labs building ZKP on Optimism mainnet;

• Superchain theory.

Risks:

• 17% token unlock, 40.5% of 1-year circulating supply;

• Intense competition with other rollups.

Potential returns: $OP ATH price – $3.2 (2 times the current price).

Disclosure: I do not have a position in $OP and I am waiting for a good entry price around $1.

#4 – @StargateFinance, $STG – Full-Chain Liquidity Transfer Protocol.

Current indicators:

• TVL: $372 million;

• Market cap: $117 million;

• Annual revenue: $45 million;

• P/E ratio: 23.55;

• Active users (average 30 days): 58,000.

Growth catalysts:

• LayerZero development and airdrop promotion;

• Leading full-chain protocols;

• 20% of STG supply locked;

• Low P/E ratio;

• L2 development → adoption catalysts.

Risks:

• Upcoming token unlock;

• Development of account abstraction.

Potential returns: $STG ATH price – $4.1 (7 times the current price).

Investment period: 6-12 months.

Disclosure: I have a small position in $STG with an average entry price of $0.58.

# 5 – @AaveAave, $AAVE – Ethereum lending protocol.

Current metrics:

• TVL: $5.16 billion;

• Annual revenue: $16 million;

• Active users (30-day average): 2.37K;

• Market cap: $1 billion;

• 24-hour fee increase: +102%.

Growth catalysts:

• Growing protocol revenue;

• Launch of $GHO stablecoin;

• Top-ranked lending protocol;

• RWA narrative;

• 90% of supply unlocked.

Risks:

• Smart contract risk;

• Bad debt risk.

Potential returns: $AAVE ATH price – $629 (11 times the current price).

Investment period: 6-12 months.

Disclosure: I have a medium-sized $AAVE position, with an average entry price of $74.

In addition to these assets, I also have long-term investments in $PENDLE, $RDNT, $MATIC, $GMX, $JPEG, as well as $ETH and $BTC.

Now, let’s move on to the high-risk section, where I will share some new protocols that I personally favor.

# 6 – @LynexFi, $LYNX – The first native liquidity marketplace for tokens and DAOs on Linea.

I see them as a competitor to Velodrome on Optimism; the protocol is scheduled to launch in August.

Disclosure: I recently joined them as an ambassador with a very strict token vesting.

# 7 – @alphascan_xyz, $ASCN – A social trading and research platform.

Their TGE is scheduled for this week. I use their tool to discover emerging narratives. They plan to launch Discord and Telegram bots in the near future.

Disclosure: I am an Alphascan ambassador.

# 8 – @eigenlayer, re-staking protocol.

One of the most impressive protocols in terms of TVL growth; there may be an airdrop in the near future. It will secure the new L2 chain, and early investors may benefit from accumulated rewards.

Disclosure: I am an EigenLayer restaker.

# 9 – @steadefi, $STEADY – Leveraged yield strategy vault with automatic risk management.

This protocol has doubled its TVL in July and ranks 9th in the leveraged mining category. The token is scheduled to launch in August.

Disclosure: I am a Steadefi ambassador and miner.

What are your choices for low-risk and high-risk long-term investments?

Please share the projects you are bullish on so that I can research them and include them in my next investment paper.

PS: NFA, DYOR.

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