Let’s take a closer look at the ten highest revenue-generating crypto dApps over the past six months. Can we draw assumptions, conclusions, or hypotheses based on this information?
We are in a bear market. YouTubers and writers are scrabbling for compelling information and stories to share with you, but there’s not much interesting news to share.
This article is not a recommendation for any of the cryptocurrencies mentioned in it
In a bear market, altcoins typically perform worse than Bitcoin and Ethereum.
This article wants to highlight a few things for you:
1) Even in a bad market, dApps are generating income
2) Do these dApps share any similar traits, if any?
3) Is it worth to observe these platforms? ( Yes, it is).
What are the 10 Top revenue-generating dApps?
Data in this article is based on information gathered from www.tokenterminal.com
Over the last six months, these ten dApps collectively brought in close to $3 billion in revenue. Additionally, considering that 4.3 million people used the DeFi wallet in January, these applications generated an average of $697 in revenue per DeFi user (wallet, to be more specific, as many people own multiple wallets).
If you are interested in tracking data of this sort, $697 per DeFi user is a bullish statistic. It’s encouraging because it suggests that when adoption rises, these and other platforms might become significant revenue producers.
What are some commonalities and conclusions?
Marketplaces make up six of the top ten dApps. NFT markets include Opensea and LooksRare, while decentralized exchanges include Uniswap, PancakeSwap, SpookySwap, and Metamask (DEXes). Of the top 10, the remaining 4 dApps offer decentralized financial services. dYdX is a derivatives platform. Convex Finance and LidoFinance are liquid staking platforms, and Aave is a lending/borrowing platform.
Eight of the top ten dApps are based primarily on Ethereum. Only PancakeSwap and SpookySwap are not part of the Ethereum ecosystem, despite the fact that some of these services are multichain. This illustrates that a project doesn’t have to be on Ethereum to generate revenues, but it helps.
Apart from two, every single one of these platforms has a token. Opensea has declared they won’t provide a native token (Wall Street sellouts), while Metamask has made a suggestion that they might. Therefore, if you have a Metamask wallet, it might make sense to switch there on the off chance that they offer an airdrop to switch users (pure speculation).
Based on market capitalization, none of the top 10 dApps fetch a price that would place them among the top 20 cryptocurrencies. How this develops will be interesting to watch.
The only projects with anonymous teams are the other three. The projects PancakeSwap, SpookySwap, and LooksRare all have anonymous teams. It’s interesting to note that the dApps not existing in the Ethereum ecosystem are also two of the three unidentified teams. It will be interesting to observe how this affects how these projects expand in the future. An enormous red flag for many investors is teams that are anonymous.
Revenue generation is all about fees. These platforms all impose fees on users. These fees quickly mount up and increase and decrease in value along with the overall worth of the cryptocurrency market. For instance, OpenSea and LooksRare get a cut of the NFT sale price. NFTs earn more fees if they sell for a higher price. The revenue (in dollars) correlates with the prices of cryptocurrencies while all of their fee rates remain constant.
All platforms, with the exception of 3, share part or all of their profits and fees with token owners and stakers. OpenSea and Metamask are two outliers because they don’t currently provide a token. The third is Uniswap.
How do you feel? In the upcoming six months, will some of these names be crossed off the list? Who do you believe to be the leading candidates to succeed them? Inform everyone in the comments.