BANANA: Just a matter of time

Detailed analysis on Banana Gun bot and current hidden potential of its token $BANANA
bananagun

Table of Contents

Disclaimers

    • The article content represents the author’s view, and does not constitute in any case a financial advice. Always DYOR.
    • The author of the article, his girlfriend, parents, friends, company and telegram frens hold many $BANANA tokens.
    • The author of the article has not been paid by Banana Gun for writing the article.

     



    Intro

    The last time Blockchain Army wrote an article of this kind, was 14/12/2022.
    The title was DexTools: The leading analytics Defi platform is a Diamond in the Rough, and described why $DEXT, dextools.io token, was extremely undervalued at 0.15$. In the following year, $DEXT touched 0.96$, with a steady climb month after month.

    We strongly believe $BANANA is the new $DEXT at 0.15$.

    So take 10 minutes of your precious time, and keep on reading.

     

     



    So, what is this “Banana Gun”

    Banana Gun is a Telegram bot that allows you to snipe upcoming launches, or safely buy tokens that are already live on Ethereum and Solana. There are numerous benefits in trading via Banana Gun rather than manually on the Dexes, mainly for speed and security reasons.

    In short, Banana allows you to snipe without effort, trading without the risk of getting sandwiched, sending private transactions, and protecting you from rugs and reorgs.

     



    First steps into the telegram bot war

    The launch of the bot was in June 2023, switching from a private bot to a bot accessible to everyone. (if you want to know more about the launch, we suggest this podcast where the founder shares the whole “behind the scenes” of the launch”).

    At that time Maestro and Unibot were sharing 99% of the Telegram bot volume.

    The strengths of Banana bot, mainly the near-perfect user interface and its superior performance, attracted users like honey does for bees.

    In August 2023 Banana’s volume and users overcame Unibots’, surpassing $5M daily and 2000 users per day.
    In the following months, Banana reached Maestro levels with peaks of $20M daily and 5000 users.

    But how does Banana Gun’s business work? 

    Fair, simple and extremely profitable.
    Banana charges a 1% (or 0.5%) fee on every trade made through the bot.

     



    Becoming the leading Ethereum bot

    Only after 6 months since its debut, it’s safe to say that Banana Gun is today the leading Telegram bot for the Ethereum Blockchain, and currently climbing at a record pace in the Solana network as well.

    We don’t say it. Data does.

     

    In short, on Ethereum:

    Banana wins 88.15% of the first bundles

    bananagun  

    Increasing volume dominance, currently more than 50% of total volume.

    Average fees above $50k/day in 2024 (and growing!)

     



    The token $BANANA

    Together with the launch of the bot, the team launched the $BANANA token. 
    $BANANA is currently trading at 11$ per token with 0/0 taxes, at a capitalization of $26M, with a respectable liquidity of $3.7M and listings on a few major exchanges (Bitget, MEXC).

    (for the haters and nerds that will find the $105M fully diluted cap, keep in mind that those tokens are locked for 6 (six!) years, and the team is committed to burn them overtime. Check this TX for further proof. Hence we believe it’s safe to say that the current cap is $26M)

    By holding the token you get some perks, but the most important one is revenue share (let’s not forget about the burn / deflationary mechanism, though)
    40% of the revenues of the bot are proportionally shared among the holders. 
    We’re talking about $20k to $40k per day, and potentially more.

    You can choose to be paid in $BANANA (in that case the token is bought back from the market), $ETH or $SOL.

    The current APY is JUICY – around 30%/y, and in our opinion, it can only increase.

    For further info on the tokenomics, read the documentation.

     



    The future for Banana Gun: partnerships and gud tek

    Banana Gun just launched on the Solana network, where in just one week, it’s currently trading above $2M daily and earning hundreds of $SOL daily in fees.

    The amount of developments in the plans is huge, and the team has, up to now, always delivered on time quality features.

    We analyzed $BANANA roadmap in depth, and we believe these will be the future main upcomings, with the related effects on users and revenues.

    NOTE: These are our estimations that differ from team announcements and estimates

    WEN Feature Estimated Effects
    Early Feb Sniping on Solana
    Limit orders on Solana
    Minor improvements on Solana
    +50% of users on Solana
    +100% of volume on Solana
    Late Feb PNL Cards on bot
    WebApp Beta
    +50% of users in Eth and Sol
    +30% of total volume
    March Dextools “safe trading API” New source of revenue ($5k/day to $20k/day)
    March Dextools Limit Orders integration New source of revenue ($10k/day to $50k/day)
    April/May Copytrading +30% of volume

    Honorable mention goes to the Dextools partnership (link), that will put Banana Gun technology in front of Millions of users per month.
    Users won’t need to leave Dextools to place unlimited limit orders, and trade without the risk of getting MEVed. 

    If this is not HUGE for a $26M project, I don’t know what is.

     



    Value coming from future features

    TLDR: Revenues could grow to $250k per day. Possibly even more, if some sort of bull-run or meme-run comes. But it’s safe to say that at least a 5x of growth in fees/volume is likely.

    • Let’s start with the current average fees: $50k/day
    • It’s safe to say Solana fees will grow in the following months, reaching at least $50k/day alone
    • When Sniping and Limit orders will be available on Sol, the volume will have another spike up. I believe up to $80k/day to $100k/day
    • When the WebApp will be launched, all the users who are not comfortable trading with Telegram can now start using Banana Gun. At least $30k/day of fees will come from that.
    • Dextools limit orders and safe trading will trade in the tens of millions per day. But even just considering a $10m/day volume (which is lower than the current volume on the questionable quality aggregator by KyberSwap), there will be $100k in fees to split between Dextools and Banana team.
    • Copytrading will increase the volume. Even if it’s just a small +20%, that would at this point lead to $20k/day.

     



    The fair valuation for $BANANA

    The writer of the article, in addition to being a Blockchain geek, owns a Master degree in Finance (check this https://www.youtube.com/watch?v=jIBeZ3_iXwY), hence loves to apply valuation metrics everywhere. 
    Let’s apply comparables, revenues and P/E analysis to $BANANA.

     



    Comparables

    Unibot, the closer competitor bot with a token, is currently traded around $80M valuation.
    Assuming all their volume and users are real (but we have big concerns on that topic, please read this

    • Banana Gun has on average double the volume than Unibot in the last month. More, if considering the whole $BANANA life.
      $BANANA valuation considering Unibot volume metrics: $160M to $300M
    • Banana Gun has around the same users as Unibot in the last month. More than 3 times their users if considering the whole $BANANA life.
      $BANANA valuation considering Unibot users metrics: $80M to $240M

     

    This analysis precisely conveys that either Banana Gun is extremely undervalued (3x to 10x undervaluation), or Unibot is overvalued, or a mix of the two.

     



    Revenues

    According to Defillama data (link), Banana Gun is the 19th protocol for fees generated in the last month, with $1.05M. 

    Who stands at 18th place? Sushi ($268M valuation)
    Who stands at 20th place? Balancer ($343M valuation)

     

     



    P/E

    By running a simple P/E valuation, $BANANA has a P/E just below 2. (you can find the data here, with some more simulations.)
    Meaning that it takes just 2 years of time for the bot to generate as much profit as the current capitalization.

    $DEXT Dextools.io, another gem, has a P/E of 5. 
    The average S&P500 stock has a P/E of 24.
    High growth stocks can reach a P/E of 100.

    Banana with Dextools P/E would do 2.5x. With the P/E of the average S&P500 stock would do 12x. I’m not even considering high-growth stocks, because of the craziness of the prediction.

     



    Wen banana at $100?

    Every unbiased financial valuation is shouting one word: POTENTIAL.

    But that’s not it.
    The valuations we performed, took into consideration the current earnings, and no growth.
    That’s right. All the future features are not taken into account.

    As we’ve seen in the paragraph above, it’s safe to assume that the revenues of Banana Gun will be multiplied by a factor of 5 in the following months. 

    This would multiply by 5 all the predicted valuations as well, making all the models suggest a fair valuation in the $500M to $800M range.

    This would lead to a single $BANANA to be worth more than $100.

    I am ready, and you?

     

    Article by Paolo Montemurro – Founder and CTO of Blockchain Army – Ambassador Dextools.io

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