Market Efficiency & Revenue Focus - The market is trending towards efficiency, with revenue becoming a key metric for asset valuation [1] - Traditional allocators are increasingly focused on revenue when evaluating crypto protocols [1] - Economic fundamentals are becoming a driving factor in setting a base price for assets, moving away from purely speculative trading [5] Protocol Performance & Challenges - Out of approximately 300 Layer 1s and Layer 2s, only about 10 have a TVL exceeding $1 billion [1] - A similar number of protocols have a daily protocol fee exceeding $200 thousand [1] - Many protocols trade at price-to-sales ratios above 1000, indicating potential overvaluation [1] - Incentives to contribute code, talent, or resources to late-stage protocols are lacking compared to earlier projects [2] Niche Markets & Revenue Generation - Founders are focusing on niche, vertical markets with higher margins [3] - Maple Finance generates roughly the same monthly earnings as Aave, despite a significantly smaller loan book ($1.2 billion vs $16 billion), by focusing on corporate pools of capital and Bitcoin yield [3] - AethirCloud has generated approximately $9 million in fees on revenue of about $78 million by offering a distributed network of GPUs for specific use cases [4] Alternative Strategies & Revenue Examples - Some entities are focusing on generating revenue without tokenization [6] - AxiomExchange has generated nearly $140 million in revenue year-to-date [6] - Phantom has surpassed $394 million in cumulative fees [6] Market Divergence - The market is witnessing a divergence between the old crypto playbook and economically sound assets [7] - There's a shift away from perception games towards having a base case for asset valuation [7]
X @Token Terminal π
Token Terminal πΒ·2025-07-03 17:43