Why did I present $AVNT to you in the latest basket update?
$HYPE Hyperliquid's success is based on two fundamental pillars:
Having its own independent L1 chain and providing a flawless order book experience.
AVNT Avantis operates on Base with an oracle-based synthetic AMM model. Consequently, they are not direct technical competitors, but can definitely correlate as ecosystem backbones.
Avantis, besides cryptocurrency, has a synthetic structure that offers up to 500x leverage on-chain for Forex, commodities, and traditional finance indices.
Considering the Coinbase support behind the Base network, this RWA hybrid structure is the biggest advantage in the long term.
According to the recently announced mechanism, 30% of the platform's daily trading fee revenue will be used to purchase $AVNT directly from the market for burning.
As the platform volume increases, a deflationary pressure on the token has begun to form.
Compared to Hyperliquid's billion-dollar valuation, AVNT's small-scale niche monopoly market cap, in my view, will create upward movement potential in a possible Base DeFi rally.
While Hyperliquid's hype continues, smart money always looks for alternatives that are still at the bottom, have not yet recovered, and possess strong fundamental ratios.
Avantis, being one of the main derivative players on the Base network and aligning with the newly introduced 30% fee buyback mechanism, fits this description.
However, remembering that only one third of the supply is currently circulating and considering the token unlock schedule, it is most sensible to build a piecewise strategy.
