Thread by @JackNiewold

When the market dips, I buy up:

• Low valuations
• Undervalued cash flows
• Undervalued network effects
• Strong communities

These are the traits that lead to massive bounces when sentiment flips

Here's why Trader Joe ( $JOE ) could do a 5x and still have room for more.👇

If you haven't heard of it, Trader Joe is a DEX on Avalanche.

It's not really revolutionary in any new ways, although it's intuitive, inexpensive, and great for onboarding new users.

But dive into the metrics and you see how it really sets itself apart.

Let's start with exchange volume. Volume tells us how much money flows the protocol.

More volume = more valuable

Below, we lined up some of the biggest exchanges by their market cap/volume ratio.

Compared to the average exchange, $JOE is undervalued by about 80%.

And some of these exchange tokens are just governance tokens.

$JOE is already paying back cash flows. Buy $JOE, stake it, and you get paid out .05% of all exchange volume.

It doesn't sound like much, but it's about $100 million a year.

Trader Joe is trading at a 3:1 P/E!

That gets paid out via staking, so throw in your $JOE, take it out whenever, and you'll have a bunch of new tokens.

It's cheap since it's on Avalanche, and these buybacks provide positive price pressure.

And while DEXes have had a bad time since early Nov, $JOE has held up better than average.

It's the best performing DEX of all the ones we've looked at, and does even better if you add in its staking APR.

(This graph is since Nov 1, $JOE is the top blue line)

We can look at their exchange volume and TVL to see if the protocol's community is growing.

Both were slightly affected by the recent dips but everything's trending up, we're not seeing meaningful amounts of capital fleeing elsewhere.

Technicals look a little gnarly, but it's been holding $2 pretty well, so that's something.

Plus the 50% staking APR means the token can go down and you still end up in the green.

I like its chances, and as $AVAX grows, people will need a place to trade.

The largest exchange on a network has a tremendous advantage and if $JOE can hold its #1 spot on $AVAX I'm very bullish.

Did you like the thread? Please do me a favor and RT or favorite that first tweet, I've got it linked below.

Want to hear the bear case for $JOE? I'll be posting that in a few days, so give me a follow: @jackniewold

https://twitter.com/JackNiewold/status/1469454603414507526?s=20

Last thing: do you like in-depth, data-backed analysis around defi protocols and small-cap alts?

Check out my newsletter! Our most recent report was a deep dive on Trader Joe.

🔺👇🔺
cryptopragmatist.com/sign-up-twitte…