A week-over-week momentum overview of the top blockchains & dapps across our key metrics.
🆕 Watch our latest episode of 15-minute fundamentals with Liquity on YouTube or listen to the audio version on any podcast platform.
Charts of the week
💰Total value locked (TVL)
Which projects currently have the most assets deposited into their smart contracts?
Top projects by latest TVL
Top projects based on daily TVL in the past 30 days
This week’s top gainers by TVL
While TVL is useful as a technical metric to measure how much value is deposited into a protocol's smart contracts, it doesn't necessarily tell investors how a protocol is performing financially.
E.g. for Compound, TVL is equal to the difference between assets deposited and borrowed. This is because a share of these deposits is withdrawn from the markets when users borrow other users' assets on Compound. TVL = assets deposited - assets borrowed.
A better way to measure Compound's performance would be to focus on borrowing volume (outstanding debt), and interest paid.
Check out our brief video on TVL, i.e. what it means & how it can be used to measure the performance of different protocols.
📈Total revenue (fees paid)
Which projects have generated the most fees/yield?
Top projects by cumulative total revenue in the past 7 days
Top projects based on daily total revenue in the past 30 days
This week’s top gainers by total revenue
There are several ways that crypto projects generate revenue. The typical revenue models by project type are as follows:
Blockchains: transaction fees
NFT marketplaces: transaction fees
DEXs: trading fees
Lending: interest & origination fees
Staking derivatives: block rewards (& transaction fees)
Indices: management fees
It’s always worth considering how much of the fee revenue or usage is tied to token incentives paid to users – a data point we’re actively working on including in all of our dashboards.
📉Price to sales (P/S) ratio
How are projects priced relative to total fees/yield generated?
Top projects by latest P/S ratio
This week’s top movers by P/S ratio
While the P/S ratio offers a highly useful and accurate tool for relative analysis between different early-stage crypto protocols, it’s always worth considering how much of the fee revenue or usage is tied to token incentives that are paid to users – a data point that we’re actively working on including in all of our dashboards.
Check out our brief video on the P/S ratio, i.e. what it means & how it can be used to analyze different protocols.
Protocol revenue is the share of the total revenue that accrues to the benefit of token holders or the company behind the protocol.
Top projects by cumulative protocol revenue in the past 7 days
Top projects based on daily protocol revenue in the past 30 days
This week’s top gainers by protocol revenue
Daily protocol revenue for this week’s top movers in the past 180 days
Protocol revenue represents the share of revenue generated from a protocol’s business that is subsequently allocated to its treasury or distributed to its token holders.
There are three typical scenarios for revenue distribution to tokenholders:
Value is distributed to tokenholders via a burning mechanism (or buybacks). This is the case with e.g. Ethereum and MakerDAO.
A protocol’s share of fees paid is distributed to the protocol’s treasury. The protocol, and thus its treasury, is owned and governed by tokenholders. E.g. Compound and Ethereum Name Service.
Protocol revenue is distributed to stakers of a protocol’s governance token. This is the case with e.g Sushi. As fees are collected they are converted to $SUSHI and distributed proportionally across holders in the xSUSHI staking pool.
It is important to keep in mind that protocol revenue does not equal profit. To calculate the profitability of a project, you must account for the team's operational expenses and any token incentives being paid out.
📉Price to earnings (P/E) ratio
The 'E' in the P/E ratio is based on protocol revenue, i.e. the share of the total revenue that accrues to the benefit of token holders or the company behind the protocol.
Top projects by latest P/E ratio
This week’s top movers by P/E ratio
For protocols like Uniswap, where all trading fees currently go to the liquidity providers (supply-side), there won’t be a P/E ratio available.
Note that we have yet to include cost & expense data in full for these protocols (e.g. off-chain development costs & token incentives), which is why these numbers should be used as directional input for a protocol’s valuation.
*Note: We have excluded dapps & blockchains with revenue figures under $10k/week.
**Note: ‘change’ is calculated as a snapshot comparison, whereas ‘trend’ is calculated by comparing the given time interval against its previous time interval.
🌟 Tweet of the week
📽 This week’s video
Visit us: tokenterminal.com