There are two DeFi protocols on Ethereum that will likely do over $1b in revenue this year.

One of them consumes about 20% of Ethereum's available computing resources each day.

It's market cap is 1.2% of Ethereum's.

Data: Token Terminal

Can you guess the other protocol?

Q1 ‘24 income statements for Ethereum and MakerDAO.

How the different metrics on Token Terminal map to the funds flow in DeFi:

1. Does the protocol have customers?
2. Does the protocol have paying customers?
3. Can the protocol capture value?
4. Can the protocol operate sustainably?
5. Can the protocol operate profitably?

How the different metrics on Token Terminal map to the funds flow in DeFi:

1. Does the protocol have customers?
2. Does the protocol have paying customers?
3. Can the protocol capture value?
4. Can the protocol operate sustainably?
5. Can the protocol operate profitably?

Q1 ‘24 income statements for friend.tech and Uniswap Labs 🦄.

Take rates matter.

because blockchain-based assets are globally liquid, each 'business-wise' successful token will have the opportunity to go for the 'moneyness' pitch later on

big companies already use their stock as currency in M&A, big protocols will have ~100x more use cases for their tokens

underrated

Following the halving and the surge in demand for blockspace, especially with the launch of the Runes Protocol, total weekly fees on Bitcoin have now surpassed $140M. This is by far the most in the entire ecosystem and catapulted Bitcoin to the second most total fees earned

Sindermann eric.avax 🔺🐔 Token Terminal just to be 100% clear, Base 🛡️ doesn't pay token terminal and never has

I do think they do great research though and are promoting a very healthy conversation!

Miners are having a great time. 🪙⛏️

Assets bridged from Ethereum Mainnet to zkSync (∎, ∆) up +16.5% over the past week.

from what we're seeing:

app developers in crypto care about

1) tech = does it work?
2) distribution = are there users?
3) long-term economic sustainability = will the platform be around?

when deciding which platform(s) to deploy on.

based on that, seems logical to compare

if you are of the opinion that both are app platforms, but

1) Base 🛡️ is centralized, and
2) Avalanche 🔺 is decentralized

then the below tweet quantifies the cost of decentralization:

$186.64M-$11.86M = $174.78M/quarter

Why fundamental analysis™ will become the norm in crypto (because of economic incentives):

1. The best VCs realize the market opportunity present in investing in Internet-scale businesses

2. In order to raise money from LPs today, the VCs need to show that the investment

parabolic increase in contract deployers (devs) on Base 🛡️. A leading indicator for project launches and a robust ecosystem ultimately driving attention, flows, tvl. Similar dynamic played on Solana last yr prior to significant px appreciation

$aero remains the best way to play

Q1 ‘24 income statements for friend.tech and Uniswap Labs 🦄.

Take rates matter.

the native asset can still be a currency and/or a commodity at the same time!