Why You Should Pay Attention to BANANA in the Trading Bot Space
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Why You Should Pay Attention to BANANA in the Trading Bot Space
Banana Gun provides excellent exposure for Memes (through sniping) and is gradually emerging as a new category of protocol.
Navigating Web3 tides with focused insightsAuthor: Flood Capital
Compilation: TechFlow
My top altcoin pick is $BANANA. About four months ago, I first wrote a deep thread about it when the price was $23. Since then, BTC has risen +35%, while Banana has gained over 100%—one of the few altcoins outperforming BTC in the current market.
Here’s the updated investment thesis.
For those unfamiliar with @BananaGunBot, it's widely considered the best Telegram trading bot and currently ranks seventh in daily trading volume. More importantly, they’re building order flow and infrastructure to compete with DeFi giants like Uniswap frontends and 1inch.
Despite being just a Telegram bot last week, their transaction volume via Ethereum DeFi frontends ranked fourth overall—and second in trading volume!
This is where it gets interesting: BG is developing a full-featured web-based trading terminal, which will significantly expand their total addressable market.
Already holding over 7% market share through Telegram alone, I expect Banana Gun to surpass Cowswap and even 1inch after launching its web application.
The web app will attract an entirely new user base that prefers trading via wallets like Metamask, offering them a wide range of advanced features.
Last week, Banana processed over $365 million in trading volume and collected $2.3 million in fees. On an annualized basis:
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$19 billion in volume
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$120 million in fees
40% of these fees are returned to $BANANA holders, making it one of the most profitable applications in all of DeFi and directly driving value to the token.
$BANANA currently offers a 35% annual yield, meaning roughly triple the distribution earnings! Even applying this to a coin with a FDV of $500–600 million, it trades at only 5–6x. The market is signaling disbelief that this revenue will sustain or recur long-term—but I disagree.
I actually believe Banana’s revenues and market share will grow. Over time, I think the market will re-rate them to valuations comparable to—or even exceeding—leading DeFi players like 1inch and Uniswap.
Let me explain why.
First, BG has an extremely strong moat on Ethereum. They dominate sniping new token launches, winning top-of-block positioning approximately 90% of the time.
A reinforcing cycle again:
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More users use Banana for sniping
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Larger bundle/tip sizes
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Win more initial bundles
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More users use Banana
As long as new token launches continue increasing on Ethereum, Banana will remain in a highly advantageous position. They also route all transactions through their private RPC, making their order flow exceptionally valuable.
This gives Banana 40–60% market share among all Telegram bots on Ethereum and accounts for 7% of total frontend volume on Ethereum.
With the upcoming web app launch, I believe this will further accelerate, providing Metamask users with a complete on-chain trading terminal featuring excellent execution quality.
Banana has already won Ethereum and, beyond the web app, is now shifting more focus toward Solana. Currently, Banana holds only about 2.5% market share among Telegram bots on Solana, but a new SOL product is imminent.
Banana aims to replicate their Ethereum success on Solana. If they can raise market share to X level, here’s how much additional revenue we could see weekly:
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10% = +$821K
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20% = +$1.64M
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30% = +$2.46M (more than doubling revenue/profits)
Banana Gun’s dominance on Ethereum, combined with new Solana bots and the web app, makes me extremely bullish on its future. It provides excellent exposure to memes (via sniping) and is gradually evolving into a new class of protocol—an aggregator—with significant trading premium compared to typical Telegram bots.
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E.g. - Banana Gun vs 1Inch
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Market Cap = $105M vs $530M
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FDV* = $260M vs $670M
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Ethereum Market Share = 7.3% vs 17.6%
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30D Annualized Revenue = $67M vs $1.8M
Banana currently has a fully diluted supply of 8.9 million tokens, but 5.5 million of those are held in treasury, and they continue burning unvested treasury tokens. I believe a realistic effective FDV is around 5–6 million tokens.
** Data is hard to find; 30-day annualized figures sourced only from @tokenterminal.
In summary, I’m super excited about Banana Gun.
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Growing user base, volume, and fees
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Exciting new products ahead
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Strong moat built via ETH sniping
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Risk-free treasury and solid supply structure
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Direct value accrual to the token
As always, DYOR. Not financial advice—just sharing my personal views.
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