Market Opportunity

Telegram bots simplify crypto trading by offering automated solutions on a platform users already know. With easy commands, users can trade, manage wallets, and handle DeFi operations more conveniently. As Telegram’s user base grows, these bots are driving increased engagement and boosting token value.

Source: Number of Telegram app download worldwise, Statista

With a lifetime trading volume nearing $7 billion and a rapidly growing user base, Banana Gun, a Telegram-based cryptocurrency trading bot, has caught the attention of many. In September alone, it generated $3 million in fees. As one of the fastest growing trading bots in Web3, it offers a lucrative business model and presents an intriguing risk/reward opportunity in a utility-driven market.

Source: Dune Analytics

The total lifetime trading volume in the DEX bot sector across all chains is $38.4 billion. Solana accounts for 69.5% of this volume, followed by Ethereum with 26.7%, while the rest is distributed across other blockchains.

Source: Dune Analytics

Since June 2024, Banana Gun has led weekly trading volume among all bots on the Ethereum blockchain, and is capturing 21.2% of the total volume across all chains, second only to Trojan.

Source: Dune Analytics

Banana Gun appears to be well-positioned for a strong market opportunity as the demand for automated trading solutions continues to grow in the crypto space. With its expansion across multiple blockchains, steady revenue from fees, and a rapidly growing user base, Banana Gun is set to thrive as the DeFi market evolves.

Today’s article will dive into Banana Gun’s utility, technology, adoption, key metrics, competitive landscape, tokenomics, and potential risks.

Banana Gun’s Platform and Technology

Banana Gun is an advanced trading bot on Telegram, renowned for its speed and precision, particularly in sniping new token launches. Launched in 2023, it quickly gained popularity by outpacing competitors like Unibot and Maestro, becoming a leader in Ethereum trading. Known for winning high value trades during volatile token launches, Banana Gun expanded to Solana and Base by mid-2024, further solidifying its position as a top tool for automated crypto trading.

Source: CryptoNews

Banana Gun’s technology is designed to automate cryptocurrency trading on DEXs with speed, precision, and security. Here’s how it works:

1. Telegram Integration

Banana Gun operates directly through Telegram, where users can interact with the bot by sending commands or setting up trades. This makes it highly accessible, allowing users to manage their trades on a familiar platform without needing to navigate a separate interface.

2. Sniper Bot Technology

The core feature of Banana Gun is its sniper bot, which is designed to quickly buy tokens during the launch of new projects or major market moves. Sniping is essential when traders want to get the best price during token launches or high-demand moments. Banana Gun’s sniper bot monitors the blockchain for new token listings and executes trades in the earliest possible block, giving users a competitive edge.

3. Automated Trading Algorithms

Banana Gun allows users to automate trading through predefined rules. Users can set parameters like:

• Limit orders: Buy or sell at specific price points.
• Stop-loss orders: Automatically sell when a token’s price drops below a certain level to limit losses.
• Dollar-cost averaging (DCA): Automatically buy at intervals to reduce the impact of volatility.

These strategies help users automate trades based on their goals, reducing the need for manual intervention and allowing them to trade 24/7.

Source: Banana Gun

The platform has built-in protections against malicious activities, including:

• MEV bots: It protects users from “Maximal Extractable Value” bots, which try to front run transactions to make a profit at the user’s expense.
• Honeypots: Prevents users from accidentally trading with fraudulent contracts designed to steal funds.
• Rug pull protection: Helps users avoid scams where token creators suddenly withdraw liquidity, leaving investors with worthless tokens

Tokenomics

The Banana Gun tokenomics are designed to create a rewarding ecosystem for its users, primarily through the $BANANA token. Here’s an overview of how it works:

• Revenue Generation: Banana Gun generates revenue through trading fees collected from users when trades are executed on supported blockchains, avoiding reliance on token taxes used by earlier bots.
• Fee Distribution: The revenue collected is distributed to $BANANA token holders, giving them a share of the platform’s profits. Holders of 50 $BANANA tokens can claim 40% of the revenue, with the remaining 60% going to the Treasury for operational costs and platform growth. To prevent inflation, all revenue distributed to holders is bought back from the market.
• Token Utility: $BANANA tokens allow holders to participate in governance decisions, vote on platform upgrades, and potentially access premium features within the bot.
• Supply Control: Buybacks and burns are used to reduce the circulating supply, maintaining scarcity and supporting the token’s price.
• Growth Model: As Banana Gun expands across multiple blockchains and attracts more users, increasing trading volumes are expected to drive up the demand and value of BANANA.

The $BANANA token is listed on major exchanges such as Binance and Bybit, as well as multiple DEXs. It has a market cap of $210.5 million and a FDV of $514.3 million, with a 24 hour trading volume of $67.4 million at the moment of writing. The token has a circulating supply of 3.46 million, a total supply of 8.45 million, and a max supply of 10 million.

The project raised $1.3 million in a pre-sale in September 2023 and has no venture capital backing. A portion of the supply is locked, with the team’s tokens locked for up to 8 years, while other allocations like airdrops and pre-sale tokens are fully unlocked. Upcoming unlocks include 170,000 BANANA (1.7% of total supply) in 331 days, valued at approximately $10.35 million, and 13,500 BANANA (0.14% of total supply) in 2522 days, valued at about $822,015.

Source: CryptoRank

Source: Banana Gun

Analyst @pierarmy_eth highlighted that Banana Gun’s team doesn’t need to sell tokens to fund operations, thanks to a strong treasury. With over $13 million in ETH and USDT (or $18 million including Solana), the treasury enables the team to keep hiring top talent and operating through bear markets.

Source: Pier on X

The biggest expense so far was securing a Binance listing, using 8% of the total supply. This fee proved worth it, as it opened doors to free listings on top exchanges like KuCoin, ByBit, and Kraken.

Here‘s how the treasury has been allocated in $BANANA tokens:

Source: Pier @pierarmy_eth

Adoption Insights and Future Outlook

Banana Gun’s consideration as a strong fundamental pick comes from its role as a cash flow generating tool during the memecoin craze, combined with its transition to a model focused on real revenue distribution to token holders. By offering real returns and aligning its business model with a revenue-sharing mechanism, Banana Gun stands out as a leader with substantial potential in a competitive and expanding market.

This strength is reflected in its price action throughout the year, with a consistent uptrend pushing its value to $61, demonstrating the market’s confidence in its fundamentals and growth potential.

Source: Coingecko

Banana Gun’s performance is backed by a similar trend in both volume and fees generated. While it maintains dominance on Ethereum, there’s clear potential for growth on Solana and Base.

Source: Dune Analytics

Cumulative revenue for Banana Gun has been steadily increasing, showcasing the platform’s ability to generate consistent returns. This growth is significant because it directly impacts the sustainability and long term viability of the project. A profitable project like Banana Gun not only ensures its continued development but also creates value for its community by distributing gains to its holders.

Source: Dune Analytics

As highlighted by @pierarmy_eth, Banana Gun is primed for growth, driven by its new scalable infrastructure. In early 2024, the team redesigned its backend, expanding beyond Telegram to include a third-party API and a web app. This opens new growth opportunities, like integration with DEXTools, giving millions access to its trading technology.

@GL_Capital_ believes launching the web app is a key move for Banana Gun. It will reduce entry barriers by offering customization, portfolio tracking, and ease of use compared to Telegram, which could attract more users. This is expected to drive trading volume and $BANANA‘s value, giving it a competitive edge as the first bot with its own web-based interface.

Source: GLC @GL_Capital

The following overview highlights Banana Gun’s roadmap and the team’s vision to evolve the platform into a full-featured trading hub.

Source: Banana Gun

Competitors

The Telegram bot market has narrowed down to a few major players, with Banana Gun, Trojan, Maestro, and Bonkbot leading the space. Trojan and Maestro currently dominate Solana’s trading volume, while Banana Gun and Bonkbot have liquid tokens, giving users direct access to their performance. Unlike Bonkbot, where the BONK token is linked to a broader ecosystem, Banana Gun’s $BANANA token offers a more focused exposure to the platform and a 40% revenue share to holders.

Source: Dune Analytics

Banana Gun recently launched its own Solana bot, aiming to compete with Trojan and Maestro, who already have a strong foothold. While Banana Gun stands out with its impressive win rate on Ethereum and robust tokenomics, it may need an extra push, like its upcoming web app, to gain more market share on Solana. A shift in attention back to Ethereum could also benefit Banana Gun, where it already has a competitive edge.

Bitbot, a new non custodial Telegram trading bot, eliminates this risk by allowing users to retain full control of their keys. It integrates AI-driven features like automated trading and real-time insights, providing a security focused approach and claiming to offer the most powerful bot ever. Bitbot raised over $4.3 million in its presale, positioning itself as a strong contender in the market.

While Banana Gun excels in Ethereum token trading, volume, rewards, and market dominance, Bitbot stands out for its emphasis on security and AI integration.

Bullish Fundamental Factors

• Banana Gun offers a revenue-sharing model that redistributes a portion of its profits to token holders, encouraging long-term holding and fostering community loyalty.
• The platform’s tokenomics are designed to incentivize usage and holding, with mechanisms such as token burns and staking, reducing the circulating supply over time and potentially increasing the token’s value.
• Banana Gun’s move to Solana is broadening its market reach, tapping into a growing ecosystem known for its fast and low-cost transactions, which could drive more adoption.
• The upcoming launch of Banana Gun’s web app is expected to improve user experience, making the platform more accessible to a broader audience and potentially increasing trading volume and user retention.
• If the meme coins trend continues, Banana Gun is well-positioned to keep generating significant fees and revenue, as it’s a top choice for traders in the memes market.

Bearish Fundamental Factors

• Banana Gun faces strong competition from other trading bots like Trojan, Maestro, and Bonkbot, which could limit its ability to capture market share and maintain its user base.
• The platform is currently dependent on Telegram, which could limit its scalability or face operational challenges if Telegram changes its policies or experiences downtime.
• Security remains a major concern in the crypto space. Any hacks, vulnerabilities, or exploits of Banana Gun could lead to significant reputational damage and user loss, impacting long-term growth.
• Trading bots like Banana Gun require wallet access, increasing the risk of security breaches. Following the “not your keys, not your crypto” rule, it’s crucial to only trade what you’re comfortable risking and safeguard assets with cold and hot wallets.

Disclaimer

This presentation has been prepared by Greythorn Asset Management Pty Ltd (ABN 96 621 995 659) (Greythorn). The information in this presentation should be regarded as general information only rather than investment advice and financial advice. It is not an advertisement nor is it a solicitation or an offer to buy or sell any financial instruments or to participate in any particular trading strategy. In preparing this document Greythorn did not take into account the investment objectives, financial circumstance or particular needs of any recipient who receives or reads it. Before making any investment decisions, recipients of this presentation should consider their own personal circumstances and seek professional advice from their accountant, lawyer or other professional adviser. This presentation contains statements, opinions, projections, forecasts and other material (forward looking statements), based on various assumptions. Greythorn is not obliged to update the information. Those assumptions may or may not prove to be correct. None of Greythorn, its officers, employees, agents, advisers or any other person named in this presentation makes any representation as to the accuracy or likelihood of fulfilment of any forward looking statements or any of the assumptions upon which they are based. Greythorn and its officers, employees, agents and advisers give no warranty, representation or guarantee as to the accuracy, completeness or reliability of the information contained in this presentation. None of Greythorn and its officers, employees, agents and advisers accept, to the extent permitted by law, responsibility for any loss, claim, damages, costs or expenses arising out of, or in connection with, the information contained in this presentation. This presentation is the property of Greythorn. By receiving this presentation, the recipient agrees to keep its content confidential and agrees not to copy, supply, disseminate or disclose any information in relation to its content without written consent.