The fickle nature of cryptocurrencies can make it tricky for service providers and protocols to achieve sustainable revenue. The past week is no different, although specific projects lose a significant amount of DApp revenue. Recovering from these setbacks isn’t impossible, but it paints a very intriguing picture overall.
Crypto Prices Rise, But DApp Revenue Drops
One intriguing observation is why all of these DApps seem to lose revenue all of a sudden. It is not for lack of users, nor is it due to crypto asset prices heading in the wrong direction. All cryptocurrencies noted substantial weekly appreciation, yet the DApps revenue is declining much quicker. A very peculiar correlation that piques one’s interest. One would expect revenues to stabilize or increase when all asset prices are moving up swiftly.
The most spectacular negative revenue spiral comes from 0x, a popular protocol for decentralizing finance. Moreover, 0x is a relayer that can offer trading benefits to many users. Even so, the weekly revenue trend shows a net loss of 80.62%. That is very interesting, although also slightly problematic. However, it is worth noting 0x has a 30-day trend of +56%, so there isn’t much reason for concern yet. Turning the weekly momentum around will require a strong performance, though.
Kyber is a very curious entrant on this list. The project has a 24-hour DApp revenue trend of +119.23% yet remains at over -79% for the week. As another DeFi-oriented solution, one would expect a much better performance from Kyber. Unfortunately, its seven-day protocol revenue is just $1.87k, which will not help matters much whatsoever. The daily revenue indicator remains promising, and Kyber can still turn the momentum around if this daily growth is sustainable.
The Graph (-73.84%)
The popular indexing protocol for querying blockchain ecosystems like Ethereum and IPFs lets anyone build open APIs to make data more accessible. However, the Graph’s revenue has fallen by 73.84% in the past week, and no one really knows why. Moreover, it appears the 24-hour trend -82% – could push the weekly revenue chart for The Graph down even further. On the other hand, it has $1.07 in weekly protocol revenue, indicating no help needs to be expected from that side.
While perpetual cryptocurrency contract trading remains a prevalent business in 2021, it seems dYdX is struggling a bit on the revenue front. However, it is not entirely surprising, given all of the other names on this list. For dYdX, the weekly revenue has declined by over 54%, which is rather substantial. As the protocol revenue tops $7.33 million for the week, and the 24-hour trend shows +26%, things are bound to get interesting for dYdX in the coming days.
As one of the leading platforms to synthesize real-world assets on a blockchain, Synthetix provides a valuable service. However, despite $90.04k in weekly protocol income, the project suffers from a DApp revenue dip of nearly 50% for the week. Moreover, the daily trend shows another -33.48%, which is not too promising. Therefore, it will be interesting to see if and when Synthetix can turn the momentum around.
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