Pantera analyst: The current price of Raydium is at the lower limit of its historical P/E ratio range, and the P/E ratio and growth rate may double
Cody Poh, an investment analyst at Pantera Capital Liquid Token Fund, stated that thanks to the rise of memecoin trading, Solana has become the ecosystem with the most DEX activity. As a leading DEX on Solana and a major beneficiary of its strong growth, Raydium's trading volume has also significantly increased. The protocol currently accounts for over 50% of all DEX trading volumes in the Solana ecosystem.
Cody Poh believes that Raydium has strong growth prospects, provided that Solana continues to grow and it remains as the origin of memecoin trades. We believe that given Raydium's dominant position in the primary token issuance market and assuming constant rates, Raydium will be in a favorable position to continue occupying most of Solana's trading volume. The current trade price for Raydium is at the lower limit of its historical Price/Earnings (P/E) range at 10 times which suggests that its strong fundamentals coupled with its robust growth prospects may be undervalued by the market. There are reasons to believe both Raydium’s P/E ratio and growth rate could double.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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