Dubai’s evolution from a land of sand dunes to a financial hub synonymous with luxury, skyscrapers, and opulence, has been remarkable  over the past few decades. While it may have risen from the desert sands as a symbol of modernity and extravagance,

From Sand Dunes to Trading Screens: Dubai’s Evolution as a Financial Powerhouse

Ethereum price is at an inflection point as it trades above $1,700 with no clear directional bias. Apart from the market FUD emanating from increasing regulatory crackdowns and a global banking crisis,

Ethereum Price Prediction: What To Expect From ETH As The … – Analytics Insight

Dune Analytics data shows Ethereum and Polygon non-fungible tokens on NFT marketplace OpenSea might record the lowest monthly sales in October. That comes as digital collectibles saw faded interest as crypto players battled with broad-based challenges,

OpenSea sales volume at 2023 lows as NFT winter deepens

Blur continues to pace OpenSea in terms of monthly sales volume. Data from the Dune Analytics dashboard showed that monthly sales volume on OpenSea embarked on its descent since March and has fallen consistently in the past seven months. So far this ...

OpenSea in October: NFT sales to hit new lows in 2023

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Sand Dunes Risen

The USD/JPY pair has a registered trading volume of $21.64 million in the past 24 hours, nearly 40% greater than BTC/USD’s $15.51 million and highest among all assets, according to data sourced from Dune Analytics. GBP/USD is the third most traded pair ...

Dollar/Yen Trading Volume Surpasses Bitcoin on DeFi Platform Gains Network

Liverpool DAB is set to turn on the new small-scale DAB transmitter for the city on November 1st 2023. The mux owners are looking for radio stations to join the service, saying it will reach nearly one million people locally. “We’re thrilled to be ...

Date set for new DAB digital radio multiplex launching in Liverpool

Sunscreen-slathered and sandal-sporting visitors flocked from far and wide to the beaches of the Indiana Dunes, which posted another strong summer tourist season this year. The Indiana Dunes ...

Indiana Dunes summer tourism posts strong year with apparent record Visitors Center visitation

The ride is a pulse-pounding crescendo, a symphony of motion and excitement amidst the Arabian Desert dunes. As the sun sets, the desert transforms into a magical canvas, painting the sky with warm hues. At a Bedouin-style camp, immerse yourself in the ...

Dubai Unleashed: 10 Adventurous Escapades to Elevate Your Experience

Dune Analytics

dune-analytics

When I first started doing marketing analysis breakdowns, I was focusing on Web 2.0 brands at . Growth Models Honestly, I was never short of strategies to analyze. In Web3, it’s a lot harder as so many projects seem to go the same “community first” route. Which can be great, but a lot of them don’t do it so well, and they’re missing out on some real low-hanging fruit. One of the brands that has impressed me over the last few years is . Dune Analytics I’ve been on calls with people who are ten years in the space and those just entering who have mentioned checking out Dune. What’s amazing with Dune is they haven’t made the common Web3 approaches of… Airdrops “Pay to follow” community growth Use to earn models with their own token (they have no token) They’ve leveraged what I consider a lot of traditional PR and brand awareness strategies which could easily lead to dominating the SERPs. And all of it comes from the way they’ve built their product. It’s an incredible tool and one of the first people think of when it comes to . blockchain analytics So what did they do to quickly rise to the top? What is Dune Analytics? Dune is a web-based app that allows anyone (with a little SQL knowledge) to query blockchain data and create awesome visuals like the one below. Some people even spend their time building full dashboards to give others an overview of a project, collection, or even sub-set of the industry, as with this example on . CEXs It’s a weird thing. Dune doesn’t pay people to build these dashboards, but every day countless new visualizations show up and are promoted by the people building them (I’ll explain why they do this later on). In my opinion, they’re talked about more than many other brands in the space that offer data visualizations, like . Nansen The question is, how did they do it? Let’s take a look. Dune’s astronomic growth Dune was founded in 2018. But if you look at any of the analytics tools out there, you don’t really see the platform taking off until around 2021. has its organic traffic taking off from early 2022 (the SEMRush numbers are low, IMO, and only considered organic). SEMRush And sees them starting to generate backlinks around the same time. This looks like it’s coinciding with the brand's raise that happened in August 2021. Series A At the time, it felt like Dune popped up out of nowhere. People were talking about it, sharing links, and creating visualizations like mad. Within no time, Dune was everywhere. And what’s interesting is that little of their traffic comes from Google searches. Most of it is direct. I’m actually amazed more of it isn’t referral traffic either (which we’ll get into shortly). Dune has managed something few brands can. They’ve become synonymous with their category (blockchain analytics) and are often the first service thought of when someone needs analytics visualizations. As a result, they get a large volume of people who don’t even need to search for them. They simply go straight to the site. I’ll be analyzing how they did this and also looking at a few of the areas I think they could improve in. Dune helps both the supply and demand side of blockchain data visualizations. This is essentially what it comes down to. Dune has done an incredible job of helping both the supply and demand side of data visualization with its platform. Dune’s helping data scientists get noticed and secure paying work. Dune is also helping people who need analysis (VCs and content creators) get detailed information on the industry as a whole. They’ve positioned themself in the middle of these two groups and created something that helps both sides of the scale. The result is everyone wants to talk about them. Let’s get into the details. Demand - Generating PR and awareness by enabling content creators Let’s be honest. The best tools, projects, and products help users achieve their goals. Usually, they make achieving them faster, easier, or cheaper. We’re currently in a phase of creators. Everyone is producing content, from individuals who want to make a bit of side income to brands that want to attract thousands of new users. Content is the way to do it. It could be through video, a blog, podcast, newsletter, or even social media accounts. The amount of content being produced is huge. And, if I’m going to be really harsh here, a lot of it is pretty generic and little more than noise. It's created by people who aren’t always experts (at least not yet). They’re simply driven enough to put the time in to continually produce content. Building an audience by offering the same kind of general overviews as everyone else is a long, hard process. But, if you have a unique insight, perhaps from data analysis, you’re immediately going to stand out. Not only do opinions backed by data carry more weight, they also have cool images that grab attention and help explain elements. Enter Dune. Analyzing blockchain data was a bitch before Dune for everyone but the most technical of people. But, thanks to Dune and a little SQL knowledge, anyone can spin up a simple graph or more detailed dashboard of analytics. The result is creators of all kinds referencing Dune in their work. Brands and influencers use Dune to talk about project growth or interesting changes in the market. Huge publications with millions of readers, like , use Dune to bolster their reporting. Coin Telegraph Video regarding Web3 analysis feature Dune. tutorials All of these references not only expose Dune to a wider market but it gets them a backlink which assists with their organic Google rankings. According to SEMRush, Dune has around 3.5M backlinks pointing to its site from over 14,000 domains. Dune has basically created a product that creators need to grow their own business and must reference if they use it. The result is a huge level of exposure and backlinks to help the brand grow. Supply - How Dune gets data scientists to create visualisations My first thought when looking into Dune is, “ ”. how do they get these people to create these visualizations? I mean, without the visualizations, Dune wouldn’t get a fraction of the press or use it does. These people are literally creating the marketing material for Dune. But why on earth should anyone bother learning how to use Dune? Again, it all comes down to Dune taking a back seat and letting other people benefit from the product. Data scientist jobs are pretty hard to land. You need a specific skill set and need to be able to demonstrate your ability to potential employers. It's also competitive and relatively well compensated. This means brands that need to hire a data scientist only want those who are proven. It's hard for a newbie in the space to show their skills and land work. Dune enables that. Anyone can sign up for an account and start building cool dashboards for free. Because it’s free to build a public dashboard, Dune effectively became a portfolio for data scientists. It’s the data scientist equivalent of… WordPress or Medium for Writers ( if you like Web3) Mirror.xyz YouTube for video editors Figma for UX designers Aspiring data scientists can create dashboards that show their skill and use it to land work. It's great because if someone’s visualization is picked up by one of the big publications like CoinTelegraph, the creator gets a link back to their work which can drive potential clients to them. But Dune also goes one step further. They have something called their wizard program. Those who are very skilled with Dune can become a Dune wizard and have their work featured. They get a special category on the main search page. As more and more people start to see the Wizard’s work, more brands reach out to them to help them build their own dashboards, as mentioned in this with a Dune Wizard. interview Dune has also released a job board to help those wizards apply for and land jobs in the space. Some of those jobs have 6-figure salaries. Not bad for someone who’s exploring their desire to understand and visualize blockchain data. Again, it comes down to Dune taking a back seat. Their product is not the highlight and focus for these people. They’re enabling others to use their product to chase their own goals. Freely marrying supply and demand for blockchain data The whole Dune approach to giving others the tools they need to grow and achieve their own goals works so well. Dune sits in this wonderful overlap of needs between three groups. - they want to build a portfolio and get a job Data scientists - who need data vis to create more engaging content Creators - who need t find reputable data scientists to help them understand investments or their own progressions Institutions Few brands are able to do this. Most brands want the detailed data visualizations they create to sit behind a paywall so only customers can access them. Others charge a high fee, so fledgling creators can’t get access to the tools in the first place. And then there are some who are so intent on retaining IP that they don’t really allow others to share their product. Dune bucks all of these trends. It’s free for anyone to set up visualizations and free to use them (with relevant citations) in any marketing material. On the surface, you might think that Dune is just a tool to visualize vast amounts of blockchain data. But it’s so much more than that. Dune is a matchmaking platform that offers opportunities to data scientists and valuable data to those who need it. By helping everyone, they’re also helping themselves. But how do they help themselves if it’s all free? How Dune monetizes While you can create dashboards and share Dune visualizations for free, they also have a paid tier. They know everyone wants (or needs) their data to be publicly available to everyone. A lot of projects need specific on-chain data analysis to help them understand how they can grow as a brand. They need specific analyses for their own internal processes. Dune has a paid plan for this. Institutions can sign up for a paid plan to help them with their in-house data analysis. It's a good fit for projects which have a lot of on-chain data to organize or VCs that need to understand how projects are growing. What I love about this model is that you can essentially get a full product demo for free. Anyone who is thinking of buying a premium plan can just head to Dune and see what they can produce. If they like the data readouts, then they’re more likely to sign up for a paid plan. And if they need help, they can find it directly within the Wizards’ portal. Areas I believe Dune is missing out on I am amazed that Dune doesn't get more organic traffic. I think they could massively increase traffic if they took a look at this. They have great domain authority. At the time of writing, their DA is 78, according to Ahrefs. If you’re not aware, DA is a third-party metric that assesses the authority of a site. Generally speaking, the higher the DA (it’s out of 100), the more likely it is to rank highly in Google. 78 is really quite high. And yet organic traffic is incredibly low. SimilarWeb has it at below 10% of all traffic to the site. Why? Well, a lot of the data visualization is not optimized for Google searches. And I wouldn’t change them. I think they’re great as they are. So what is Google indexing for Dune? They tend to index a lot of the creator pages. And really, I can’t imagine these are showing up for much in terms of searches. If I were consulting at Dune and they wanted to increase traffic, I would try to use the platform to create data readouts related to what people are searching for. Here’s a small snippet from Keywords Everywhere around some basic crypto searches. There are around 20,000 searches per month here, and the competition is pretty low (CMP is on a scale of 0-1, with 1 being the most competitive). With Dune’s DA, they could spin up some articles that they update every month or so and have them ranking quite highly in Google. They have the benefit of… Being a recognized authority Having direct access to data Having an established audience They could easily create articles that address high-volume searches and use their own data to create something no one else can. In the above cases, you'd have to be careful of “financial advice,” but you could easily find an angle that avoids that. For example, rather than an article that looks at “which crypto to buy today for the long term,” you could create one which is “cryptocurrencies that have the highest trade activity over the last X months.” You still optimize for the primary keyword listed in the image, but you get away from making any concrete investment claims. I imagine they could easily add a few more hundred thousand visitors to their site every month by tackling this. Especially as the SEO approaches in Web3 are weak AF right now. Summing up Dune Dune’s success is really down to 2 key elements, in my opinion. Having a great product that helps multiple groups Enabling people to use their product for free which promotes free PR While it’s not a marketing strategy per se, the way they’ve built things creates a strategy that has Dune on the tip of everyone’s tongue. They’ve built something with the aim of helping others. They don’t put themselves at the center of everything but find themselves there, thanks to their generosity. It’s a true Web3 approach. I do think they could be doing more in terms of traffic, and I hope that their monetization model is enough to keep them viable as they grow. Also published . here

Analysis: How Dune Analytics Became the Most Discussed Blockchain Data Tool

As time goes on, Solana keeps improving its position as a major force in the blockchain world, leaving many of its competitors in the rear view. Where the likes of Ethereum, Binance Smart Chain and TRON once held the spotlight, now it’s Solana’s turn to be in the lead. Editor’s note: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies are speculative, complex, and involve high risks. This can mean high prices volatility and potential loss of your initial investment. You should consider your financial situation, investment purposes, and consult with a financial advisor before making any investment decisions. The HackerNoon editorial team has only verified the story for grammatical accuracy and does not endorse or guarantee the accuracy, reliability, or completeness of the information stated in this article. #DYOR Dune Analytics’ data shows that, in 2024, Solana’s stablecoin supply jumped 156% compared to last year, reaching over $3.7 billion. Better still, it also hit a new record for real economic activity in October ($36.8 million), while the TVL has surpassed $6 billion for the first time since 2022. The growth is impressive, and it clearly shows that the opportunities within the Solana ecosystem are growing. In this article, let’s explore why that is the case. What Is Fueling Solana’s Growth? Solana offers vast opportunities, but its growing popularity comes to a simple thing: it’s fast and cheap. However, some users want the transactions to be even faster, so they are paying priority fees to speed up the processing. Last week (October 21-27, 2024) the amount paid jumped almost twice (from $8.3M to $15.2M), which significantly boosted the real economic value activity. Another key factor in Solana’s growth was the rise in Jito tips (where users tip to ensure smooth transaction processing) — they surged from $10.3M to $20.1M in the same week. These figures highlight how the trader’s interest towards Solana is going up, especially those who want to launch new projects. The main attraction is, once again, low costs. Transaction fees on this chain remain competitively low — just a fraction of a cent, compared to, for example, Ethereum, where the fees per transaction can reach $6–8. Another reason for Solana’s success has been, of course, the boom of DeFi opportunities within its ecosystem. Protocols like Sanctum, Jito, and Kamino have attracted new waves of users by offering creative solutions for things like lending, staking, and liquidity provision. They are successfully drawing in crypto investors with high yields and point systems with promises of airdrops from several projects. This is not just giving a boost to Solana’s DeFi landscape but also brings more liquidity into the whole ecosystem. Additionally, the launch of decentralized exchanges and cross-chain bridges between Solana and other blockchain networks plays a significant role in the ecosystem’s success. Take Jupiter, for example — one of the top Solana-based platforms in 2024, the DEX aggregator boasts consistently high trading volumes. On October 25, it nearly crossed the $2B mark, establishing a new record. Bridges, meanwhile, are adding to Solana’s popularity by simplifying transfers across other networks and giving users opportunities to diversify their strategies. All without needing to leave Solana’s ecosystem. For developers, this means getting access to a broader user base. For investors, the chance to move assets across chains quickly and cheaply (as we’ve already covered earlier). Finally, one of the biggest attributes that Solana can boast of is true decentralization. Unlike BSC or XRP, Solana’s infrastructure is fully driven by the community, which has helped a lot in terms of establishing trust among users and positioning Solana as a genuine option for developers devoted to the core idea of decentralization. SOL Token’s Bullish Outlook What can we expect soon? As of October 27, Solana’s SOL token was trading at $179. End-of-the-year periods historically tend to mean price increases for tokens. Forecasts also say that a bull market is expected to begin at the end of 2024. And not only that, Bitcoin’s halving has already passed earlier in the year, and prices always go on the rise after that. So with everything above taken into account, we can reasonably expect SOL to reach around $200 by the end of 2024. And if it manages to break out of its current accumulation phase, it could even potentially challenge its previous all-time-high of $259. The data brought up at the beginning of this article also supports this line of thinking, showing Solana’s rising popularity. With more projects moving to Solana to take advantage of its opportunities, SOL’s future growth seems like a safe bet. Admittedly, these are just my personal observations and should not be taken as gospel or financial advice. Volatility is always a factor in crypto, so market participants should carefully consider their options before making any decisions about buying or selling SOL. Stablecoins on Solana Are the Future of Payments Typically pegged to fiat currencies like USD, stablecoins offer a sense of safety and usability that more volatile cryptocurrencies cannot. This makes it far easier for them to take an increasingly important role in the global financial infrastructure; stablecoins are already becoming essential for making both everyday transactions and large-scale business payments. Solana is in a good spot to benefit from their rise. For example, stablecoins like PayPal’s PYUSD have already made an impact —  where it struggled to scale on Ethereum, PYUSD has gained almost $250 million in market cap​ on Solana between May-October 2024. Users mostly prefer using USDT and USDC on Solana since it ensures fast, low-cost stablecoin transactions. These stablecoins can be confidently called the most popular, as they are already a mainstream payment tool. Between October 2023 and October 2024, their market cap jumped $36B and $9,7B respectively. At the same time, Tether recently released data that shows how the number of on-chain wallets has grown to 330 million by Q3 2024, with the average growth of 9% across the last four quarters. This surge in popularity is significantly benefiting Solana as well. Solana’s Future is Bright At this point, I’d say that we have firmly established that Solana’s growth in 2024 is no fluke or empty hype. It’s built on genuine technological advantages and real-world benefits for users and developers alike. Solana’s ability to offer fast and affordable transactions, paired with its thriving DeFi landscape and strong stablecoin support, makes it a strong contender for leadership in the blockchain world. As time goes on, Solana keeps improving its position as a major force in the blockchain world, leaving many of its competitors in the rear view. Where the likes of Ethereum, Binance Smart Chain and TRON once held the spotlight, now it’s Solana’s turn to be in the lead. Editor’s note: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies are speculative, complex, and involve high risks. This can mean high prices volatility and potential loss of your initial investment. You should consider your financial situation, investment purposes, and consult with a financial advisor before making any investment decisions. The HackerNoon editorial team has only verified the story for grammatical accuracy and does not endorse or guarantee the accuracy, reliability, or completeness of the information stated in this article. #DYOR Editor’s note: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies are speculative, complex, and involve high risks. This can mean high prices volatility and potential loss of your initial investment. You should consider your financial situation, investment purposes, and consult with a financial advisor before making any investment decisions. The HackerNoon editorial team has only verified the story for grammatical accuracy and does not endorse or guarantee the accuracy, reliability, or completeness of the information stated in this article. #DYOR Editor’s note: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies are speculative, complex, and involve high risks. This can mean high prices volatility and potential loss of your initial investment. You should consider your financial situation, investment purposes, and consult with a financial advisor before making any investment decisions. The HackerNoon editorial team has only verified the story for grammatical accuracy and does not endorse or guarantee the accuracy, reliability, or completeness of the information stated in this article. #DYOR Dune Analytics’ data shows that, in 2024, Solana’s stablecoin supply jumped 156% compared to last year, reaching over $3.7 billion. Better still, it also hit a new record for real economic activity in October ($36.8 million), while the TVL has surpassed $6 billion for the first time since 2022. data data record record surpassed surpassed The growth is impressive, and it clearly shows that the opportunities within the Solana ecosystem are growing. In this article, let’s explore why that is the case. What Is Fueling Solana’s Growth? Solana offers vast opportunities, but its growing popularity comes to a simple thing: it’s fast and cheap. However, some users want the transactions to be even faster, so they are paying priority fees to speed up the processing. Last week (October 21-27, 2024) the amount paid jumped almost twice (from $8.3M to $15.2M), which significantly boosted the real economic value activity. Another key factor in Solana’s growth was the rise in Jito tips (where users tip to ensure smooth transaction processing) — they surged from $10.3M to $20.1M in the same week. jumped jumped surged surged These figures highlight how the trader’s interest towards Solana is going up, especially those who want to launch new projects. The main attraction is, once again, low costs. Transaction fees on this chain remain competitively low — just a fraction of a cent, compared to, for example, Ethereum, where the fees per transaction can reach $6–8. Another reason for Solana’s success has been, of course, the boom of DeFi opportunities within its ecosystem. Protocols like Sanctum, Jito, and Kamino have attracted new waves of users by offering creative solutions for things like lending, staking, and liquidity provision. They are successfully drawing in crypto investors with high yields and point systems with promises of airdrops from several projects. This is not just giving a boost to Solana’s DeFi landscape but also brings more liquidity into the whole ecosystem. Additionally, the launch of decentralized exchanges and cross-chain bridges between Solana and other blockchain networks plays a significant role in the ecosystem’s success. Take Jupiter, for example — one of the top Solana-based platforms in 2024, the DEX aggregator boasts consistently high trading volumes. On October 25, it nearly crossed the $2B mark , establishing a new record. $2B mark $2B mark Bridges, meanwhile, are adding to Solana’s popularity by simplifying transfers across other networks and giving users opportunities to diversify their strategies. All without needing to leave Solana’s ecosystem. For developers, this means getting access to a broader user base. For investors, the chance to move assets across chains quickly and cheaply (as we’ve already covered earlier). Finally, one of the biggest attributes that Solana can boast of is true decentralization. Unlike BSC or XRP, Solana’s infrastructure is fully driven by the community, which has helped a lot in terms of establishing trust among users and positioning Solana as a genuine option for developers devoted to the core idea of decentralization. SOL Token’s Bullish Outlook What can we expect soon? As of October 27, Solana’s SOL token was trading at $179 . End-of-the-year periods historically tend to mean price increases for tokens. Forecasts also say that a bull market is expected to begin at the end of 2024. And not only that, Bitcoin’s halving has already passed earlier in the year, and prices always go on the rise after that. $179 $179 So with everything above taken into account, we can reasonably expect SOL to reach around $200 by the end of 2024. And if it manages to break out of its current accumulation phase, it could even potentially challenge its previous all-time-high of $259. The data brought up at the beginning of this article also supports this line of thinking, showing Solana’s rising popularity. With more projects moving to Solana to take advantage of its opportunities, SOL’s future growth seems like a safe bet. Admittedly, these are just my personal observations and should not be taken as gospel or financial advice. Volatility is always a factor in crypto, so market participants should carefully consider their options before making any decisions about buying or selling SOL. Stablecoins on Solana Are the Future of Payments Typically pegged to fiat currencies like USD, stablecoins offer a sense of safety and usability that more volatile cryptocurrencies cannot. This makes it far easier for them to take an increasingly important role in the global financial infrastructure; stablecoins are already becoming essential for making both everyday transactions and large-scale business payments. Solana is in a good spot to benefit from their rise. For example, stablecoins like PayPal’s PYUSD have already made an impact —  where it struggled to scale on Ethereum, PYUSD has gained almost $250 million in market cap​ on Solana between May-October 2024. $250 million $250 million Users mostly prefer using USDT and USDC on Solana since it ensures fast, low-cost stablecoin transactions. These stablecoins can be confidently called the most popular, as they are already a mainstream payment tool. Between October 2023 and October 2024, their market cap jumped $36B and $9,7B respectively. At the same time, Tether recently released data that shows how the number of on-chain wallets has grown to 330 million by Q3 2024, with the average growth of 9% across the last four quarters. This surge in popularity is significantly benefiting Solana as well. $36B $36B $9,7B $9,7B data data Solana’s Future is Bright At this point, I’d say that we have firmly established that Solana’s growth in 2024 is no fluke or empty hype. It’s built on genuine technological advantages and real-world benefits for users and developers alike. Solana’s ability to offer fast and affordable transactions, paired with its thriving DeFi landscape and strong stablecoin support, makes it a strong contender for leadership in the blockchain world.

Solana’s Surge: Why is It Set to Lead the Blockchain Industry?

Since April 1, the crypto market has been hit with a tsunami of new tokens. We’re talking more than one million in less than sixty days. Over 370,000 new tokens sprouted on Ethereum. But Solana stole the show. A whopping 640,000+ new tokens, most of them meme-tastic creations were launched on the platform. What does this surge in new coins mean for developers, project founders, and CEOs in the space? What You Should Know This isn't your grandma's crypto market. This landscape is a meme-fueled rollercoaster. Of the total 643,000 new tokens launched on Solana, 466,914 were memecoins. Pump.fun, Solana's memecoin factory, is churning them out faster than a Shiba Inu chasing its tail. Some of these freshly minted tokens are straight rug pulls. They only want to survive long enough to cash out and ghost investors who were too lazy to do their own research. Don’t let bad actors dash off carrying your hopes, dreams, and hard-earned cash. A Dune Analytics dashboard tracks the number of new tokens launched on the Solana-based memecoin platform pump.fun. But Ethereum isn't sitting on the sidelines. Its layer-2 blockchain, Base, has become a playground for degens creating memecoins at warp speed. With numbers doubling since April, the massive volume of new tokens means devs, founders, and CEOs must prioritize transparency, security, and building trust with their communities. We’ve been here before. Back in 2017 when the ICO craze was really popping I reviewed hundreds of projects for a top review site. Most of them were trash. From January to December 2017, the value of BTC rose 1500% – the largest one-year increase in history. As bitcoin gained value and legitimacy, trading volumes increased and hundreds of new crypto coins were issued. The following year 751 crypto coins became defunct – the most casualties of any year. Of those, 390 failed due to lack of trade volume and 237 due to issues with fraud. Don’t be the next victim. I’ve grown stealthy at spotting crypto winners and losers based on their publicly available information. You don’t have to be Nostradamus to know most meme projects will crash and burn. A handful will emerge stronger than ever. These will have a community that is vibrant and engaged. The token will tap into humor or pop culture effectively and spark virality. Those with long-term sustainability will move beyond the hype, trends, and shilling. They’ll boast active development, innovative features, or clear utility within a decentralized application (dApp) or ecosystem. These are the projects that soar above the sea of mostly shitcoins riding FOMO and FUD. Keep reading for some additional tea on winning strategies in crypto’s Wild West. Standing Out Is More Difficult Than Ever Project founders and CEOs must be aware of the increased saturation. With one million new tokens flooding the market, it's safe to say that competition has never been more intense. Every project wants more attention and investors. Standing out in this crowded market will require exceptional innovation, marketing, and community-building strategies. Now, get this. The influx of tokens, particularly meme coins, suggests a shift in user expectations. Many users are now seeking entertainment, community, and quick gains alongside traditional investment opportunities. Projects that can cater to these diverse needs may find greater success. Strategies for Success If you’re a project founder, dev, or CEO you need to be prepared to handle intense competition for attention, funding, and user adoption. For me, this demands exceptional innovation, marketing, and community-building strategies. Remember high levels of competition in the space also signals a thriving and dynamic market packed with opportunities. To strike success in this crowded field requires identifying niche markets, catering to specific user needs, and offering unique value propositions can lead to success even in a crowded field. The Gold Rush was a period of intense competition, where thousands flocked to California in hopes of striking it rich. Like the crypto space, it was a crowded field, with everyone seeking the same precious resource. But, not everyone found gold by digging in the same spot. Some prospectors found success by venturing into less explored areas, using different techniques, or focusing on providing services to other miners (like selling tools or supplies). One pro tip is to focus on differentiation. Whether it's through unique features, innovative technology, or a compelling value proposition, finding ways to stand out is crucial in a crowded market. Building a Strong Community An effective strategy for project founders to differentiate themselves and achieve long-term success is to build a strong community. This includes tactics for engaging with investors, fostering trust, and creating a loyal following. This community-driven approach not only strengthens a project's position but also fosters a sense of shared ownership and purpose among its members. I’ve seen the spillover buzz from retail investors make a project more appealing to institutional investors. It’s a powerful force that can propel any project to new heights. The Bored Ape Yacht Club (BAYC), a collection of 10,000 unique Bored Ape NFTs is an example of successfully building a strong community. This project executed several strategies including exclusive benefits, celebrity endorsement, and an active social media presence. They continue to share updates and build a sense of togetherness among members. Creative and Effective Marketing Strategies Fostering community-driven initiatives aligns with another essential tool in the arsenal of project founders. Creative and effective marketing strategies are crucial for projects to stand out from the crowd. Leveraging the power of social media trends, forming strategic partnerships with influencers, and publicity campaigns on crypto news sites help founders stay afloat and emerge stronger than ever. By harnessing these tactics, projects can gain much-needed visibility and traction in an increasingly saturated market. Shiba Inu (SHIB) is a project that started as a meme coin and managed to create a massive following and achieve significant market success. I’ve followed some of their effective marketing approaches. Right out of the gate, SHIB leveraged Reddit, Twitter, and Telegram to engage directly with their audience. They focused on community engagement, viral marketing, strategic partnerships, and transparency. Navigating Regulatory Challenges Project founders and CEOs must stay informed about the latest regulations and compliance measures to ensure their token offerings are above board and legally sound. Regulatory challenges are becoming increasingly complex and can land you in jail. Get expert legal counsel, and implement strong compliance protocols. These moves are essential steps for projects to thrive in the constantly changing regulatory environment. A proactive approach reduces legal risks and increases trust and credibility with investors and users. Ripple (XRP) is a prime example of a crypto project that effectively navigates regulatory challenges. Despite facing significant hurdles, their comprehensive approach to regulation is a model of resilience and adaptability. They continue to apply a combination of proactive legal defense, strategic partnerships, and industry advocacy. This is why they’re positioned as a leader in the blockchain and crypto space. Collaborating and Networking Strategic partnerships and collaborations can be a game-changer for project founders and CEOs. Teaming up with other industry players, networking with investors, and connecting with experts are necessary tools to strengthen your position in the market. This interconnected approach stirs innovation. It also creates a supportive ecosystem. Founders are able to build authority and generate organic traffic to their projects. This is a great way to overcome challenges and discover new opportunities in the face of a million new tokens flooding the market. A prime example of a crypto project successfully collaborating and networking in the current environment is Polygon (MATIC). This layer-2 (L2) scaling solution focuses on enhancing scalability and user experience for Ethereum and other blockchain ecosystems. It also collaborates heavily with DeFi, NFT, and gaming projects. Conclusion With this recent explosion of tokens, the crypto world is more chaotic (and potentially profitable) than ever. Founders, developers, and CEOs must adapt. Stay ready to pivot your strategies and tactics to gain a competitive advantage. How can you embrace new technologies like AI or ML to stay ahead of the curve? The crypto market is evolving with this token tsunami as investors fall into two camps. Will FOMO (fear of missing out) cause your audience to dive headfirst into the memecoin madness? Or does FUD (fear, uncertainty, and doubt) make your prospects hodl Bitcoin and laugh at the memecoin chaos from the sidelines? Do your research and experiment. It’s simple. The future of your project is in your hands. Make it count. Those who can navigate this dynamic, memecoin-filled landscape with innovation, integrity, and adaptability are poised to thrive. The world of crypto is continuously changing. Stay afloat, stay innovative, and stay connected. Since April 1, the crypto market has been hit with a tsunami of new tokens. We’re talking more than one million in less than sixty days. Over 370,000 new tokens sprouted on Ethereum. But Solana stole the show. A whopping 640,000+ new tokens, most of them meme-tastic creations were launched on the platform. What does this surge in new coins mean for developers, project founders, and CEOs in the space? What You Should Know This isn't your grandma's crypto market. This landscape is a meme-fueled rollercoaster. Of the total 643,000 new tokens launched on Solana, 466,914 were memecoins. Pump.fun, Solana's memecoin factory, is churning them out faster than a Shiba Inu chasing its tail. Some of these freshly minted tokens are straight rug pulls. They only want to survive long enough to cash out and ghost investors who were too lazy to do their own research. Don’t let bad actors dash off carrying your hopes, dreams, and hard-earned cash. A Dune Analytics dashboard tracks the number of new tokens launched on the Solana-based memecoin platform pump.fun. But Ethereum isn't sitting on the sidelines. Its layer-2 blockchain, Base, has become a playground for degens creating memecoins at warp speed. With numbers doubling since April, the massive volume of new tokens means devs, founders, and CEOs must prioritize transparency, security, and building trust with their communities. We’ve been here before. Back in 2017 when the ICO craze was really popping I reviewed hundreds of projects for a top review site. Most of them were trash. From January to December 2017, the value of BTC rose 1500% – the largest one-year increase in history. As bitcoin gained value and legitimacy, trading volumes increased and hundreds of new crypto coins were issued. The following year 751 crypto coins became defunct – the most casualties of any year. Of those, 390 failed due to lack of trade volume and 237 due to issues with fraud. Don’t be the next victim. 751 crypto coins became defunct I’ve grown stealthy at spotting crypto winners and losers based on their publicly available information. You don’t have to be Nostradamus to know most meme projects will crash and burn. A handful will emerge stronger than ever. These will have a community that is vibrant and engaged. The token will tap into humor or pop culture effectively and spark virality. Those with long-term sustainability will move beyond the hype, trends, and shilling. They’ll boast active development, innovative features, or clear utility within a decentralized application (dApp) or ecosystem. These are the projects that soar above the sea of mostly shitcoins riding FOMO and FUD. Keep reading for some additional tea on winning strategies in crypto’s Wild West. Standing Out Is More Difficult Than Ever Project founders and CEOs must be aware of the increased saturation. With one million new tokens flooding the market, it's safe to say that competition has never been more intense. Every project wants more attention and investors. Standing out in this crowded market will require exceptional innovation, marketing, and community-building strategies. Now, get this. The influx of tokens, particularly meme coins, suggests a shift in user expectations. Many users are now seeking entertainment, community, and quick gains alongside traditional investment opportunities. Projects that can cater to these diverse needs may find greater success. Strategies for Success If you’re a project founder, dev, or CEO you need to be prepared to handle intense competition for attention, funding, and user adoption. For me, this demands exceptional innovation, marketing, and community-building strategies. Remember high levels of competition in the space also signals a thriving and dynamic market packed with opportunities. To strike success in this crowded field requires identifying niche markets, catering to specific user needs, and offering unique value propositions can lead to success even in a crowded field. The Gold Rush was a period of intense competition, where thousands flocked to California in hopes of striking it rich. Like the crypto space, it was a crowded field, with everyone seeking the same precious resource. But, not everyone found gold by digging in the same spot. Some prospectors found success by venturing into less explored areas, using different techniques, or focusing on providing services to other miners (like selling tools or supplies). One pro tip is to focus on differentiation . Whether it's through unique features, innovative technology, or a compelling value proposition, finding ways to stand out is crucial in a crowded market. focus on differentiation focus on differentiation Building a Strong Community An effective strategy for project founders to differentiate themselves and achieve long-term success is to build a strong community. This includes tactics for engaging with investors, fostering trust, and creating a loyal following. This community-driven approach not only strengthens a project's position but also fosters a sense of shared ownership and purpose among its members. I’ve seen the spillover buzz from retail investors make a project more appealing to institutional investors. It’s a powerful force that can propel any project to new heights. The Bored Ape Yacht Club (BAYC), a collection of 10,000 unique Bored Ape NFTs is an example of successfully building a strong community. This project executed several strategies including exclusive benefits, celebrity endorsement, and an active social media presence. They continue to share updates and build a sense of togetherness among members. Creative and Effective Marketing Strategies Fostering community-driven initiatives aligns with another essential tool in the arsenal of project founders. Creative and effective marketing strategies are crucial for projects to stand out from the crowd. Leveraging the power of social media trends, forming strategic partnerships with influencers, and publicity campaigns on crypto news sites help founders stay afloat and emerge stronger than ever. By harnessing these tactics, projects can gain much-needed visibility and traction in an increasingly saturated market. Shiba Inu (SHIB) is a project that started as a meme coin and managed to create a massive following and achieve significant market success. I’ve followed some of their effective marketing approaches. Right out of the gate, SHIB leveraged Reddit, Twitter, and Telegram to engage directly with their audience. They focused on community engagement, viral marketing, strategic partnerships, and transparency. Navigating Regulatory Challenges Navigating Regulatory Challenges Project founders and CEOs must stay informed about the latest regulations and compliance measures to ensure their token offerings are above board and legally sound. Regulatory challenges are becoming increasingly complex and can land you in jail. Get expert legal counsel, and implement strong compliance protocols. These moves are essential steps for projects to thrive in the constantly changing regulatory environment. A proactive approach reduces legal risks and increases trust and credibility with investors and users. Ripple (XRP) is a prime example of a crypto project that effectively navigates regulatory challenges. Despite facing significant hurdles, their comprehensive approach to regulation is a model of resilience and adaptability. They continue to apply a combination of proactive legal defense, strategic partnerships, and industry advocacy. This is why they’re positioned as a leader in the blockchain and crypto space. Collaborating and Networking Collaborating and Networking Strategic partnerships and collaborations can be a game-changer for project founders and CEOs. Teaming up with other industry players, networking with investors, and connecting with experts are necessary tools to strengthen your position in the market. This interconnected approach stirs innovation. It also creates a supportive ecosystem. Founders are able to build authority and generate organic traffic to their projects. This is a great way to overcome challenges and discover new opportunities in the face of a million new tokens flooding the market. A prime example of a crypto project successfully collaborating and networking in the current environment is Polygon (MATIC). This layer-2 (L2) scaling solution focuses on enhancing scalability and user experience for Ethereum and other blockchain ecosystems. It also collaborates heavily with DeFi, NFT, and gaming projects. Conclusion With this recent explosion of tokens, the crypto world is more chaotic (and potentially profitable) than ever. Founders, developers, and CEOs must adapt. Stay ready to pivot your strategies and tactics to gain a competitive advantage. How can you embrace new technologies like AI or ML to stay ahead of the curve? The crypto market is evolving with this token tsunami as investors fall into two camps. Will FOMO (fear of missing out) cause your audience to dive headfirst into the memecoin madness? Or does FUD (fear, uncertainty, and doubt) make your prospects hodl Bitcoin and laugh at the memecoin chaos from the sidelines? Do your research and experiment. It’s simple. The future of your project is in your hands. Make it count. Those who can navigate this dynamic, memecoin-filled landscape with innovation, integrity, and adaptability are poised to thrive. The world of crypto is continuously changing. Stay afloat, stay innovative, and stay connected.

One Million New Tokens Since April: How Crypto Project Founders Rise Above the Noise 

A Glimpse Into the Past The concept of smart contracts predates the inception of blockchains, having been delineated by Nick Szabo in 1994. The first practical application emerged years later in 2015 with the Ethereum platform. Fundamentally, smart contracts automate contractual obligations and eliminate intermediaries. Smart contracts have found extensive applications in finance, overshadowing their potential to automate processes across various domains. Decentralized Applications (DApps) extend beyond financial tools; they merely scratch the surface. While the DeFi market has soared in complexity and success, other sectors lag behind significantly. Challenges Facing DApps in Non-Financial Sectors: Development complexity and cost Blockchain’s slow performance Lack of robust integration tools (wallets, infrastructure, etc.) Attempts at broader application have made little headway. The State of Gaming in Decentralization CryptoKitties marked the first step towards decentralized gaming, though it was largely controlled by its developers. Axie Infinity, despite its success, faced significant challenges, including a $615 million hack, due to its proprietary blockchain. Moreover, its gameplay mechanics are private, challenging its decentralized nature. Other projects like Gods Unchained and Heroes of Mavia also fall short of full decentralization. The current trend involves separating gameplay from asset ownership (NFTs for characters and items), with gameplay largely centralized. However such projects omit that mere ownership of NFTs does not provide “full control over assets.” Assets only have value thanks to gameplay mechanics, which are 100% under the control of developers. A popular term describing current projects is . GameFi Low decentralization and emphasis on play to earn. Examples: Axie Infinity Illuvium Splinterlands Pixels League of Kingdoms Gods Unchained Heroes of Mavia Seraph Decentralized Games Truly decentralized games are currently few and far between. Existing games can be divided into the following groups: Focus on the Blockchain Component The gameplay consists of a basic set of actions or resembles very basic game mechanics. The characteristic of such projects is that tokenomics are central, with gameplay tacked on top. It’s hard to call these fully-fledged games. Examples include CryptoKitties, DefiKingdoms, Crypto Raiders, and Neon District. Community-Developed Ecosystems The main project develops only basic assets while the community ecosystem develops games for these assets. This sounds cool and could achieve full decentralization. The problem is that games tend to be boring and often have centralized gameplay. This approach could lead to some good games, but any successful project within such an ecosystem is likely to outgrow it and become its own entity (as happened with DOTA evolving from a map for Warcraft 3 into a standalone game). Examples are Aavegotchi and Axie Infinity (planned). SDK for Simplified Game Development This route allows for significantly fewer resources to be spent on blockchain, and in theory, the gameplay should be more refined. This approach is very promising, but there is a risk that all games will look alike and be quite formulaic. Nonetheless, studios that invest efforts in developing an SDK based on their contracts have every chance to make a good game as a “showcase” for their engine (similar to Unreal Tournament from the web2 era). Examples include MUD SDK and Paima Studios SDK. Effort to Combine Forces Creating quality gameplay and laying the foundation for full decentralization. This approach requires prioritizing the creation of a gameplay process where blockchain serves as an advantage rather than a checkbox feature. This direction is the most promising but also the most challenging. Examples are Primodium and Sacra: Falling of Myrd. Why Do We Need Decentralization for Games? To break the current trend, it’s necessary to focus on the question, and convey this to the users. “Why does a game need to be decentralized at all?” The simple answer to this question is the same as “Why is Bitcoin needed?” Real Ownership of Assets True ownership of an asset means control over its value. Only by providing decentralized gameplay can you guarantee real ownership of the asset. Security Open source is not just a whim of crypto maximalists. Only open source allows for a real security audit and identification of vulnerabilities. Moreover, immutable (or DAO-controlled mutable) code guarantees the preservation of assets and the gameplay mechanics that give value to the game’s main assets. Economy Building a complex economy capable of handling significant assets requires unprecedented quality and security of code in the gaming industry. Fortunately, years of DeFi existence have accumulated best practices in this area. For a game built on smart contracts, it’s easy to imagine an economy operating billions. Excluding the influence of third parties, whether intentional or unintentional, ensures confidence in the stability of the in-game economic model. Resistance to Censorship I think almost every gamer has faced being banned for unclear reasons or even denied access to a game altogether. A decentralized game is protected from this as much as the blockchain it runs on is protected. Even in the presence of a centralized company that supports the game’s UI, the original client code will always be available, allowing the game to be launched locally. Community and Governance The openness of the product attracts a genuinely interested community around the project. The ability to contribute and manage key issues through voting creates incredible long-term support. Integration of Real Assets into the Game Economy A game can be seen as a small state. Like any other state, to ensure a stable economy, it can own assets of other states. This is fully relevant for decentralized games. It’s easy to imagine assets locked in a game generating passive income and creating additional value for the project. All of this can be summarized in one word: DeGame. Technical Implementation Currently, various blockchains have their smart contracts, but EVM and Solidity are the de facto industrial standards. It’s not just that 90% of all developments are written in Solidity, but also the infrastructure built around EVM networks. RPC providers, The Graph protocol for the backend part, Dune analytics dashboards, and other tools solve many problems that are difficult to compensate for with other tech stacks. But is it really possible to “squeeze” game logic into Solidity given that the size of contracts is limited to 24KB and the block time in most blockchains does not exceed 2 seconds? Yes, it’s more than feasible. There are many design patterns for writing complex logic, such as The Diamond Standard (EIP-2335) and the use of libraries along with the ERC-7201 standard. These approaches allow us to almost completely bypass the limitation on the size of the smart contract code. The gas limit per transaction imposes serious restrictions on the number of actions a player can take in one go. However, the use of packed data and standard gas optimization methods allow for even complex logic such as pathfinding on terrain and determining lines of sight within a single transaction. Blockchain enables unique gameplay mechanics for multiplayer. In a standard MMO game, solving the problem of lag with 1000+ players online is practically impossible, but here, the mechanism of competition for gas comes into play. Moreover, gas payments can be tied to in-game currency through ERC-4337. This means you can control the online servers with in-game mechanics (pay more in-game currency to participate in a castle siege with other players, for example). At this stage, it’s too early to talk about a fully decentralized game with real-time action gameplay. However, game genres with turn-based gameplay fit perfectly with the concept of block finalization. Essentially, technical limitations encourage the creation of new genre combinations, such as turn-based MMO RPGs. Over time, a specific blockchain will be created to process on-chain actions of players sufficient even for real-time shooters. L2/L3 blockchains, which can now be deployed in minutes through a UI, have proven themselves well in this regard. It’s more than realistic to imagine a situation where a blockchain game can create its own temporary L3 for a specific game session. The Future of DeGame As always, games present a real challenge to the entire IT industry, pushing it towards more efficient solutions. Not only is there a need to develop complex logic on smart contracts, but the blockchain must also be capable of processing a huge number of transactions. Fortunately, there are now many blockchains capable of achieving the necessary throughput. A sufficiently large project could even develop its own blockchain to handle transactions specific to the game. A decentralized server part for the game with its validators and consensus. However, in the early stages, a standard universal blockchain is more than enough for games without real-time action. And as experience shows, it’s better to focus on one thing, whether it’s the game itself or the infrastructure in the form of a fast blockchain. In the future, we will see many projects that implement gameplay on smart contracts and open a new era in the gaming industry. This revolution goes hand in hand with the evolution of all crypto projects, and it’s only a matter of time before the old game development is displaced by new approaches.

The Future of Decentralized Gaming: A Comprehensive Outlook

On-Chain Data Product Insights: The Data Analysis Revolution in the Web3 Era

On-chain asset tokenization represents a long-term trend with the potential to shake up the existing financial landscape. Within this arena, tokenized government bonds make up an increasingly important segment. The segment experienced a stellar growth of nearly seven-fold in 2023 and is quickly recovering from a brief slump at the end of 2023. The article dives into the current situation and some exciting trends in tokenized government bonds and the tokenized real-world assets (RWA) sector as a whole. Current Situation Tokenized government bonds and other tokenized real-world assets (RWA) have witnessed significant growth, propelled by rising interest rates joining forces with relatively low DeFi yields. This development has reflected investors’ appetite for asset classes that offer more stable, predictable returns. More and more investors, especially those seeking to strike a balance between the traditional financial market and the cryptocurrency market, are favoring these tokenized RWA products. A estimates that tokenization of global illiquid assets will reach $16 trillion, or 10% of global GDP by 2030. This includes both on-chain asset tokenization and traditional asset fractionalization (e.g. Exchange Traded Funds (ETFs) and Real Estate Investment Trusts (REITs)). Considering the potential market size, even capturing a small portion of this vast market would signify significant growth opportunities for the crypto industry. Boston Consulting Group (BCG) report Players in the RWA Ecosystem RWA Infrastructure Infrastructure providers in the RWA ecosystem, also known as RWA rails, provide the regulatory, technical, and operational infrastructure upon which RWAs are brought into crypto. They serve as the foundation for the entire ecosystem, and the development of RAW rails is vital to the sustainable growth of the RWA sector. Asset Providers Additionally, there are asset providers that focus on originating and creating demand for RWAs across various asset classes， including real estate, fixed income, equities, and others, contributing to the sector’s diversity and breadth. Market Size RWAs are the 11th largest sector in DeFi based on protocols tracked by , with a combined TVL of over $4 billion. According to a , the number of holders of tokens associated with RWA protocols reached over 67,000 on the Ethereum blockchain, more than doubling in the last 12 months. Within this sector, the total value of the tokenized Treasury segment increased to $719 million as of Mar 20, 2024, from around $379 million a year earlier, according to RWA monitoring platform . The average Yield-to-Maturity was at 5%. DeFi Llama Dune Analytics dashboard by @j1002 RWA.xyz That said, the combined TVL of RWAs has been slumping for the last several months after peaking at $6.271B last October. The value of the tokenized Treasury segment also dropped from $771 million at the end of last November, but it has moved back to an uptrend since February this year. As the broader crypto market recovers from the bear market, it seems that some people are pivoting to higher-yielding markets like DeFi lending and liquid restaking. User Profiles and Behaviors We’ve attempted to analyze the profiles and behaviors of RWA users to understand the underlying user demand. We observed that most RWA users are native to the cryptocurrency ecosystem, indicating that the early adopters did not come from traditional investment avenues. One of the facts that can demonstrate this observation is that the average creation date of RWA token holders’ wallet addresses predates the time when RWAs were tokenized on the blockchain. This means that the RWA userbase is a subgroup that evolved from the broader crypto community rather than a community that rose from influxes of traditional investors. RWA users often have a strong grasp of blockchain technology and many have entered DeFi long before RWAs become buzzed. We used the number of RWA token holders as a proxy to gauge RWA adoption. Both the number of RWA token holders and the unique interactions with RMA tokens have been on a continuous rise despite the recent drop in RWA protocols’ combined TVL. We believe this is a sign of the RWA sector’s increased awareness and positive expectations among investors. With a time-series analysis of the RWA holders’ wallet addresses, we’ve found that most of the addresses have been in use for a long time and have participated in various blockchain activities. This means that the RWA sector is largely participated by a healthy group of long-term crypto users. That said, we did notice growing participation from new wallet addresses as well. This probably means the RWA sector is gradually permeating into more traditional user groups as more traditional financial institutions, including Franklin Templeton and Wisdom Tree, embrace RWAs. RWAs are bridging the divide between crypto and traditional finance, but they also carry inherent risks and limitations from the real world. Most RWA interactions require checks from traditional financial systems, such as KYC/AML, credit checks, and minimum balance requirements. These prerequisites limit RWAs’ potential to extend financial inclusivity. Competitive Landscape We conducted an in-depth comparison of different projects in terms of market share, growth rates, pricing, and user experience to assess the competitive landscape. In the tokenized government bond sector, Franklin Templeton, leveraging its extensive accumulation and brand advantage in traditional finance, holds the largest market share. Ondo Finance and Matrixdock have different user demographics due to their different marketing strategies. Emerging companies like Hashnote and Superstate, while having smaller market shares, are experiencing rapid growth, demonstrating market vitality and diversity. With respect to pricing, different projects have different management fee rates, reflecting their strategies for market positioning and cost control. For example, Franklin Templeton and Ondo Finance have lower management fee rates, which help attract large institutional investors. On the other hand, Matrixdock and Maple Finance have relatively higher management fee rates, possibly to compensate for revenue pressures stemming from their smaller market shares. In terms of user experience, providing clear, intuitive, and user-friendly interfaces is crucial for attracting and retaining users due to the nature and complexity of tokenized government bond products. Additionally, with intensified market competition, enhancing service quality and customer support will become key differentiators for each project. To summarize, tokenized government bond projects are in a phase of rapid development, with significant differences among projects in market share, growth rate, pricing strategy, and user experience. Their prospects will be greatly influenced by the global economic environment, regulatory policies, and relevant technological innovations. To remain competitive, they need to continuously optimize their product features, enhance user experience, and adapt to evolving market and regulatory conditions. Major Players in Tokenized Government Bond Products Franklin Templeton Franklin Templeton is a US-based global asset manager with over $1.3 trillion in assets under management. As a traditional investment firm actively exploring the blockchain industry, Franklin Templeton has launched several blockchain-focused venture capital and equity funds in the past. Market Share: 48.6% Government Bond Product’s Market Value: $350,077,608 Management Fee: 0.15% Market Share Change in the Past Quarter: -5.51 percentage points Ondo Finance Ondo Finance launched three tokenized bond products by investing in multi-billion dollar, highly liquid, exchange-traded funds managed by the world’s preeminent bond managers, including BlackRock and Pacific Investment Management Company (PIMCO). They are the U.S. Government Bond Fund (OUSG), Short-Term Investment Grade Bond Fund (OSTB), and High-Yield Corporate Bond Fund (OHYG). Market Share: 17.01% Government Bond Product’s Market Value: $122,511,877 Management Fee: 0.15% Market Share Change in the Past Quarter: -6.69 percentage points Matrixdock Matrixdock is an on-chain treasury bond platform launched by Matrixport, a Singaporean asset management platform. STBT is Matrixdock’s first product, introducing a risk-free rate based on US government bonds. Market Share: 10.78% Government Bond Product’s Market Value: $77,674,902 Management Fee: 0.3% Market Share Change in the Past Quarter: -2.11 percentage points Backed Finance Backed is a Swiss start-up bridging real-world assets on-chain. The company has issued blB01, a tokenized short-term U.S. government bond ETF, on Coinbase’s Layer2 Base. Market Share: 6.73% Government Bond Product’s Market Value: $48,485,006 Management Fee: 0% Market Share Change in the Past Quarter: -0.4 percentage points Hashnote Hashnote is a regulated company under the oversight of the U.S. Commodity Futures Trading Commission (CFTC) and the Cayman Islands Monetary Authority (CIMA). It is a fully regulated, institutional-grade DeFi asset management platform, offering comprehensive service support, zero counterparty risk, and customizable risk/reward strategies to consumers. Market Share: 5.92% Government Bond Product’s Market Value: $42,613,396 Management Fee: 0% Market Share Change in the Past Quarter: +0.2 percentage points Superstate Superstate is a blockchain-based asset-management firm. It raised $14 million in venture capital to develop regulated, on-chain funds that U.S. investors can access last November. In February 2024, it debuted its first tokenized U.S. Treasury fund offering on the Ethereum blockchain. Market Share: 4.16% Government Bond Product’s Market Value: $29,985,969 Management Fee: 0.15% Market Share Change in the Past Quarter: +4.16 percentage points Open Eden Open Eden is a crypto startup established in early 2022. It was co-founded by Jeremy Ng and Eugene Ng, Gemini’s ex-Asia-Pacific head and former Head of Business Development for the region. Market Share: 3.24% Government Bond Product’s Market Value: $23,328,886 Management Fee: 0% Market Share Change in the Past Quarter: -1.12 percentage points Maple Finance Maple Finance is an institutional capital marketplace that provides credit experts with tools to run an on-chain lending business connecting institutional lenders and borrowers. It has been a market leader in private credit. In April 2023, it introduced a new cash management pool allowing non-U.S. accredited investors and entities to participate directly in U.S. Treasury investments using USDC. Market Share: 1.45% Sovereign Debt Product Market Value: $10,428,616 Management Fee: 0.5% Market Share Change in the Past Quarter: -3.23 percentage points Predicting Future Developments We believe six trends will drive the development of the tokenized government bond segment of the RWA market. These trends will transform the market landscape and provide investors with new opportunities. The tokenized government bond segment will witness a deeper integration of on-chain technology with traditional financial assets. This trend will enable more efficient asset tokenization processes and more timely synchronization of on-chain and off-chain data, significantly improving the efficiency and transparency of transactions. This will, in turn, lead to faster and more trustworthy trading experiences for investors, potentially attracting more capital into the area. Deeper Integration of On-chain and Off-chain Mechanics With increased regulatory attention around digital assets, tokenized government bond projects will be forced to strengthen their compliance. We believe more blockchain-based compliance solutions, such as those using smart contracts for compliance checks, will emerge to meet increasingly stringent regulatory requirements. This will boost investor confidence and encourage more institutions to participate in this market. Increased Compliance with Advances in RegTech Solutions Advancements in cross-chain technologies will enable seamless interoperability of tokenized government bond products on various blockchain platforms, enhancing liquidity and accessibility across the entire market. This will provide investors with more choices and flexibility and reduce market risks. Additionally, increased cross-chain interoperability will promote the convergence of international markets, creating more global investment opportunities. Increased Cross-Chain Interoperability We expect projects to introduce more customized and personalized products to meet the specific needs of different investor groups. These products will include those that precisely target an investor’s risk preference and investment objectives, enabling them to achieve their financial goals better. This movement, in general, will allow investors to have a more diversified range of investment choices. More Customized and Personalized Products Projects are expected to place greater emphasis on transparency and security, leveraging blockchain technology’s traceability and tamper-proof nature to enhance investor trust and confidence. This will attract more risk-sensitive investors to participate in the market and help mitigate market manipulation risks. Enhanced Transparency and Security The application of artificial intelligence for market analysis and predictions, as well as the generation of automated investment strategies, will be a significant innovation direction for the Sovereign Debt RWA market in the future. With these innovative developments, investors will be better informed and empowered to seize market opportunities. Integration of Cutting-Edge Financial Technologies like AI Promising Project Types Based on the above understanding, we believe the following five types of projects will be worth paying attention to. Amid more and more stringent regulatory requirements, projects that have a high level of compliance and offer high transparency are more likely to gain favor in the market. These projects will be able to establish a trustworthy reputation and attract more investors. High Compliance Projects Projects that fully leverage cutting-edge technologies such as blockchain, artificial intelligence, and big data, particularly those capable of providing efficient trading and investment strategies, are poised to secure a place in the market. These projects will bring faster and smarter investment experiences. Technology-Driven Innovative Projects Projects that boast seamless interoperability across different blockchain platforms, especially those providing a broader selection of assets with optimized liquidity, will have a clear competitive advantage. Cross-Chain Compatible Projects Platforms that are easy to use and provide comprehensive customer support and educational resources will be more popular, especially among non-professional investors. User-Friendly Platforms Projects that excel in cost control and operational efficiency, such as those offering low management fees and highly automated services, will be able to win out in the competitive market. Low-Cost, High-Efficiency Solutions In conclusion, investors are more inclined to seek higher-yield investment opportunities under a hiking Federal Reserve. The growth of the RWA market indicates that despite macroeconomic pressures, its potential for high returns has attracted a significant amount of capital. With regulatory improvements and technological advancements, we expect the tokenized government bond market to continue to grow, especially given the increasing adoption of digital currencies like stablecoins and CBDCs. That said, tokenized government bond projects may face stricter regulatory requirements in the future, particularly in anti-money laundering (AML) and Know Your Customer (KYC). As the regulatory environment becomes more stable, these projects are expected to integrate more seamlessly into the traditional financial system while providing investors with new investment channels and risk management tools. To mitigate the inherent risks associated with RWA products, we believe tokenized government bond issuers should adopt decentralized governance decision-making mechanisms, such as the DAO framework used by many issuers in the private credit category. Such mechanisms enhance transparency, allow for better risk assessment and mitigation and also help ease regulatory compliance. Also published . here

The Status Quo and Six Trends in Tokenized Government Bonds: Analyzing the Current State and Future 

স্থিতাবস্থা এবং টোকেনাইজড সরকারি বন্ডের ছয়টি প্রবণতা: বর্তমান অবস্থা এবং ভবিষ্যত বিশ্লেষণ করা

Der Status Quo und sechs Trends bei tokenisierten Staatsanleihen: Analyse des aktuellen Zustands und der Zukunft

El status quo y seis tendencias en los bonos gubernamentales tokenizados: análisis del estado actual y el futuro

Le statu quo et six tendances des obligations d'État tokenisées : analyse de l'état actuel et futur

टोकनयुक्त सरकारी बांडों में यथास्थिति और छह रुझान: वर्तमान स्थिति और भविष्य का विश्लेषण

トークン化国債の現状と6つの傾向：現状と将来を分析する

토큰화된 국채의 현황과 6가지 동향: 현황과 미래 분석

O status quo e seis tendências em títulos governamentais tokenizados: analisando o estado atual e o futuro

Статус-кво и шесть тенденций в токенизированных государственных облигациях: анализ текущего состояния и будущего

Tokenleştirilmiş Devlet Tahvillerinde Statüko ve Altı Eğilim: Mevcut Durumun ve Geleceğin Analizi

Hiện trạng và sáu xu hướng về trái phiếu chính phủ được token hóa: Phân tích hiện trạng và tương lai

代币化政府债券的现状和六大趋势：分析现状和未来

A look at the RWA’s promise of bringing trillions of dollars worth of value to the crypto space. A new acronym has entered the crypto vocabulary and appears to be firmly establishing itself. , short for Real World Assets, is gaining recognition as one of the most promising use cases in the crypto space now. RWA The idea is not new: . Stablecoins, for instance, can be considered a form of RWA as they introduce US dollars (or other fiat currencies) to the blockchain. Synthetic assets, like those issued by Synthetix, achieve a similar goal by tokenizing popular stocks. at their core, RWAs are good old tokenized assets, such as tokenized shares of real estate, commodities, art, and even debt, like the US T-bills However, the RWA acronym has been recently used mostly to describe lending protocols built around these assets. They generate yield by investing users’ coins in off-chain assets. In return, users receive not only passive revenue but also a sort of IOU token, which can then be used across a variety of . DeFi protocols The benefits of bringing RWA on the blockchain are plenty: , enhancing asset liquidity, enabling more efficient asset management, unlocking various new use cases within DeFi protocols… etc. democratizing investment With the potential to bring – literally – trillions of dollars worth of , this new trend is capturing the attention of an increasing number of crypto investors. value to the blockchain However, while some protocols look serious and promising, others raise suspicion. Let’s see why the RWA is so hyped now and what protocols stand out. A trillion-dollar potential The potential impact of RWA on crypto finance is enormous. Global real estate is estimated at some $326 trillion, US debt now makes a staggering $33 trillion, and gold’s market cap is $13 trillion. Such assets make up a huge chunk of traditional finance but are still very modestly represented in crypto. This simple rationale prompted Citi to declare . In their released in March, the bank’s analysts predicted that $1.9 trillion of non-financial debt, $1.5 trillion of real estate funds, $0.7 trillion of private equity, $1 trillion of securities financing, and $1 trillion of trade finance volumes would be tokenized by 2030. RWA tokenization the foremost catalyst for crypto adoption report This estimation means . Considering that the current market cap of the entire crypto space is slightly over $1 trillion, this prospect appears nothing short of ground-breaking. bringing over $6 trillion of value to the blockchain RWA in crypto now , reaching a TVL of over $2.3 billion, according to . However, this figure is certainly much higher in reality, as some already established DeFi protocols are increasingly investing in RWA. The weight of RWA protocols is constantly growing DeFiLlama MakerDAO One of the most prominent examples of such “conversion” is MakerDAO, a veteran DeFi lending protocol and the issuer of $DAI stablecoin. The DAO is actively remaking itself, and a growing RWA allocation is likely to be a part of the plan. As of now, (not included in DeFiLlama’s calculations), including over $1.1 billion of treasury bonds and $500 million of Coinbase Prime yield . That accounts for almost 50% of its funds. MakerDAO boasts a $2.3 billion RWA portfolio (source: @steakhouse on ) Dune Analytics Ondo Finance One of the (relatively) early entrants into the , has been gaining significant and consistent traction since its launch in January, amassing some . RWA-specific space Ondo Finance $164 million of TVL According to the company website, Ondo Finance invests in “multi-billion dollar, highly liquid exchange-traded funds, managed by the world’s preeminent bond managers”, mentioning notably BlackRock and Pimco. The firm also discloses the third-party custodians and auditors responsible for overseeing the funds. Built on Ethereum and recently extended to Polygon, Ondo Finance invests users’ stablecoins in different funds, issuing them a corresponding token in return. OUSG for BlackRock’s short-term US treasuries (only accredited investors), OMMF for US money market funds (only accredited investors), and USDY for Short-term US Treasuries and bank deposits, plus equity subordination (only non-US citizens). Depending on risk level, Ondo Finance offers between 4.5% and 7.7% APY. Most importantly, however, the tokens that users receive as proof of their investment in real world assets (US dollars and US debt in this case) can be then used in any DeFi protocol that would list them. This is the main difference from traditional funds, making investments liquid, borderless, and accessible to all. stUSDT Launched in July, , of which almost half was added just last week. stUSDT has become the biggest RWA protocol by far, securing a stunning $1.8 billion of TVL That looked somewhat irregular to us, and indeed, digging into the protocol revealed a number of red flags. The protocol is built on and TRON, the brainchild of the controversial crypto personality Justin Sun, who is also sitting on the board of Huobi, the crypto exchange. Ethereum , which he hopes someday will become the “web3 alternative to Alipay’s Yu’e Bao”. Users can stake their $USDT on the platform (current yield is around 4% APY), which invests them into “high-grade short-term government bonds”, as outlined on its website. In return, users receive $stUSDT, which they can then use in other financial protocols. Mr. Sun touted stUSDT as a money market fund Launched by RWA DAO, stUSDT is operated by JustLend DAO under the custody agreement between the two. Other than this information, little is known about its governance, and the protocol cruelly lacks transparency. Furthermore, it became known that Justin Sun was behind the sudden increase of the protocols’ TVL. Last Friday, he made a series of operations that puzzled the crypto space: he minted $815 million of the small-cap stablecoin TUSD, which he then transferred to another address and burned. Coincidentally, almost the same amount of stUSDT was minted, raising brows in the community. Overall, this project is not deprived of interest, but some would say the red flags are too many, and t does not stand opacity. he DeFi space is steadily morphing into CeFi, which in turn acts as a gateway to DeFi. It is a fascinating process to watch, and while the current public opinion still dissociates the crypto and the fiat worlds, in reality, they are merging. Traditional finance Slowly, then suddenly. Also published . here

Real World Assets: The Crypto Trend with Trillions in Potential

Blockchain technology has evolved a great deal since ’s debut in 2009. Today, the digital asset ecosystem is not short of choices when it comes to alternative blockchain networks. While Layer 1 chains such as Bitcoin and Ethereum are still the most dominant networks, Layer 2 scaling solutions are emerging as potential challengers, especially in the Decentralized Finance (DeFi) market. Bitcoin What is the Difference Between Layer 1 and Layer 2 Blockchains? For context, Layer 1 refers to the core infrastructure of a blockchain network, also known as the ‘mainnet’. In this type of chain, the base layer (Layer 1) acts as the primary network, finalizing transactions and any other on-chain processes in the case of a smart contract blockchain like Ethereum. Although secure, Layer 1 chains have their own shortcomings, most notably the issue of scalability – which is what Layer 2 solutions are designed to solve. Layer 2 infrastructures build upon the foundation of Layer 1 blockchains by introducing an additional layer to enhance transaction throughput. One can think of Layer 2 solutions as secondary frameworks; this is because they assume the transaction execution function, thereby reducing network congestion on the base layer. That said, Layer 2 scaling solutions also have their downside: they are not as secure as Layer 1 blockchains. The Current State of Layer 1 Blockchains According to , the total market capitalization of Layer 1 blockchains currently stands at $811 billion, with Bitcoin claiming the lion’s share at $524 billion, while Ethereum follows at $202 billion. Other Layer 1 blockchains that also feature among the top 10 digital assets in market cap include Binance’s BNB chain, Cardano, and Avalanche. Coingecko To further compare the performance of these Layer 1 ecosystems, we have classified them into three: Bitcoin, Ethereum, and the Ethereum Challengers (BNB, Cardano, Solana, Avalanche, and newer Layer 1 generations such as Aptos and Sui). Bitcoin: The Ultimate Layer 1 Blockchain Bitcoin, also nicknamed ‘digital gold’, has consistently ranked as the top Layer 1 blockchain ecosystem in terms of market capitalization. This can be attributed to several factors, including Bitcoin’s value proposition as the ‘ ’. It has outperformed both the Nasdaq and Gold over the past decade, with BTC’s returns between 2011 and 2021 standing at 230.6%, while Nasdaq and Gold recorded 20% and 1.5%, respectively hardest asset in the world However, despite being a darling in the larger investment space, Bitcoin’s blockchain lags behind in terms of ecosystem development. Unlike Layer 1 smart contract blockchain networks, the majority of Bitcoin's on-chain activity revolves around transactions. To provide a clearer perspective, Bitcoin's blockchain currently supports only 7 protocols, whereas Ethereum boasts an impressive count of over 1800 protocols, as per DeFi Llama . metrics Bitcoin Ordinals - A Passing Fad or Big Leap? During the first half of 2023, Bitcoin’s blockchain network activity surged significantly, courtesy of Bitcoin Ordinals. This is a newly added protocol to the Bitcoin blockchain that allows users to mint NFTs. The latest data from Dune Analytics reveals that there are currently over 27 million Bitcoin Ordinal Inscriptions, all of which were minted in 2023. The caveat, however, is that while Ordinals may have breathed new life into the Bitcoin blockchain, critics argue that they are causing an increase in network fees as they occupy too much block space. On the other hand, proponents are more focused on how Bitcoin Ordinals can expand the value of Bitcoin’s blockchain beyond supporting transactions. But looking at the most recent statistics, it is questionable whether Bitcoin Ordinals are a passing fad or here to stay. Trading volumes and sales have plummeted by over 95%, according to . DApp Radar Ethereum: The Leading Layer 1 Blockchain in DApp Development The Ethereum blockchain has made significant progress over the past year. Most notably, this Layer 1 blockchain successfully migrated from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus in the merge that took place in September 2022. Furthermore, staking withdrawals were eventually enabled in April 2023 through the Shanghai upgrade. Since then, the amount of staked ETH has risen to over 26 million, up from 18 million around the time of the upgrade, according to data from . Nansen But more importantly, Ethereum has maintained its position as the leading DeFi blockchain, while other Layer 1 and Layer 2 chains have witnessed a decline in the number of active users. It is also worth noting that Ethereum’s block time (average time between blocks) is currently a mere 12 seconds, while Bitcoin’s averages at 10 minutes. Consequently, there is also a significant difference in the average transactions per hour, with Ethereum averaging 42,000 transactions compared to Bitcoin’s 17,900 transactions. Ethereum Layer 1 Blockchain Challengers As for Layer 1 chains offering alternative smart contract environments, none have yet lived up to the hype despite booming when the Decentralized Finance (DeFi) market was hot. However, there are some noteworthy trends in this niche: The BNB Chain is the third largest Layer 1 blockchain with a market cap of $34 billion, currently hosting over 600 protocols. Tron is fast emerging as the go-to Layer 1 blockchain for stablecoin transactions, with over 1.2 million daily active users. Solana and Avalanche have continued to see a decline in number of users, although the former is making fundamental strides, with Shopify recently integrating Solana Pay. Newer generation Layer 1 blockchains Aptos and Sui dominated the first half of 2023. Aptos native APT outperformed other smart contract tokens. Layer 2 Scaling Solutions: Current Market Insights As mentioned in the introduction, Layer 2 scaling solutions are designed to address the infamous blockchain trilemma coined by Vitalik Buterin. To put it simply, it is challenging for a blockchain network to simultaneously possess these three core functionalities: scalability, decentralization, and security. Layer 1 blockchain networks are decentralized and secure, but they are not highly scalable. On the contrary, Layer 2 blockchains are scalable but rely on Layer 1 chains for advanced security features. That said, let’s delve into some of the developments in the Layer 2 scaling ecosystem. Still a Drop in the Ocean According to Coingecko, the total value locked (TVL) in Layer 2 blockchain networks is $3.78 billion. This figure is relatively small compared to the overall TVL in all DeFi protocols, which stands at $38 billion. Notably, Ethereum accounts for the larger share with 57%. However, on the brighter side, Layer 2 scaling solutions have experienced consistent growth in the number of unique addresses over the past year, with nearly 2.5 million unique addresses recorded thus far. Moreover, the monthly gas usage for Layer 2 blockchains has remained high despite the macro and industry-specific headwinds. Source: Coinbase Research EVM Compatible - Optimistic and Zero Knowledge Rollups These two types of Layer 2 scaling solutions are EVM compatible, meaning that they can seamlessly leverage the Ethereum blockchain for security while handling transaction execution. While they have been operational for barely a year, both Optimistic and Zero Knowledge Rollups are gradually disrupting the DeFi market. For an in-depth introduction, you can refer to this we published earlier. article Shifting to the numbers, a recent by Alchemy revealed that the number of developers in the Optimism ecosystem grew by 205% over the past year. Additionally, with the recent Worldcoin hype, which is built on Optimism, the TVL in optimistic rollups increased by over $692 million within a month. report zKSync Era Also noteworthy is the zK Sync Era, which went live earlier this year. Initially, when zK Sync launched, it did not support smart contract functionality. However, with the zK Sync era upgrade, this Layer 2 scaling solution now supports all Ethereum functionalities at a faster speed and lower cost. Since its launch, the zK Sync Era has recorded an average of $5.9 million in monthly transaction fees, retaining an average of 41% of its net costs. Base: The New Kid on the Block The latest addition to the Layer 2 blockchain ecosystem is Base, an L2 built by Coinbase on the OP stack. As of writing, Base is the 4th largest Layer 2 blockchain ecosystem with a TVL of $348 million, and it currently hosts 97 protocols according to DeFi Llama. But perhaps the most notable achievement is becoming the fastest L2 to reach the 100K user mark; Base accomplished this milestone within 56 days of its launch. The hype was fueled by several factors, including Coinbase’s involvement in the project, a DApp dubbed Friend.tech, which recently created a frenzy within the crypto community, and the interest shown by established crypto institutions like Circle, which is set to launch its native USDC stablecoin on Base. Closing Thoughts The blockchain landscape has clearly expanded into a robust ecosystem that supports Decentralized Finance (DeFi) and Non-fungible tokens (NFTs). However, as emphasized in this article, a lot of innovation is ongoing, and distinguishing between valuable advancements and less impactful ones can be challenging. Nonetheless, this dynamic landscape serves as a testament to the boundless potential of blockchain technology. Layer 1 and Layer 2

Current Trends and Developments in Layer 1 and Layer 2 Blockchains 

a SWOT analysis is an evaluation of the fundamental, operational, technical, social, economic, and even to some degree administrative elements of a project. This is not a model to be used for trading purposes. Note: (NFA, DYOR) Composed of four elements, and , a analysis framework provides excellent insight for establishing a high-level understanding of the state of a project’s well-being through the lens of a birds-eye view. Strengths, Weaknesses, Opportunities, Threats SWOT It can help formulate decisions around which areas require more attention, set performance goals, and organize a foundational understanding of where a project is headed. Rarely (if ever) used in crypto, it is time to apply this timeless method of evaluation to the digital asset space. Today, ( ) the industry’s leading decentralized exchange protocol and pioneer of the AMM trading model, will get a SWOT. UniSwap UNI , 💪 Strengths (Internal) (Helpful) 1. First Mover Advantage Uniswap as a project has been in development since early 2018, with conversations around its concept being brought to the surface by earlier in 2017. Having the longest history of ideation in the space alongside the brainpower of elite professional developers (who have been wholly committed to the creation of the protocol) puts Uniswap ahead of any other potential newcomers attempting to build a similar product. By solidifying its position as the first of its kind, Uniswaps strengthens its position perpetually just by virtue of being alive for so long. Vitalik 2. DEX Protocol With the Most Liquidity Maintaining a TVL over $3 Billion USD consistently puts Uniswap as the leading decentralized exchange venue by total value locked. This massive amount of capital existing inside a single protocol perpetuates a flywheel effect of value attribution similar to a network effect; the more capital that gets locked, the more capital becomes interested in joining, feeding a positive feedback loop. This positive feedback loop then trickles into other areas, such as trustworthiness and usefulness, further cementing the survivability of the protocol and making it more attractive for ancillary reasons. 3. Robust Infrastructure Even though Uniswap is known as the most popular decentralized exchange platform, what is not commonly discussed is how much of the infrastructure in UniSwap has actually been built from scratch. Inside their core business logic behind the AMM order model is a multitude of nuances baked into the project, including elements such as the concentration of liquidity for AMMs. The granularity in fee structure (which gives owners of markets a higher degree of creative space). An adaptation of AMMs for NFT swaps (granted, this innovation was not originally Uniswaps, but due to the critical role that it plays, having this function basically arbitrates out the need for newcomers to build projects on this principle; arguably saving investors money and developers time, needlessly pursuing something that Uniswap is able to deploy with relative ease and quality guarantee). Moving on, UniSwap has its own Oracle system baked into the pools, which store price histories within themselves (stateful) and track the elapsing of time, which makes the pools “aware” of themselves/the assets within them and can adjust pricing more fluidity/naturally than if there were more intermediaries involved. 4. New V4 Upgrade New architectural capabilities are being introduced through a concept called “hooks,”; which are basically meshing complex multi-contract calls into single executions which bring native flexibility into the pool operations expanding their native surface area of utility to new limits. A new era of capital efficiency becomes possible with dynamic fee structures (so the pool fees can adjust based on some internal factors) and the arrival of on-chain AMM limit orders, which could, in turn, constitute a greater degree of liquidity. Moreover, a new mechanism called TWAMM (Time-Weighted-Automated-Market-Making) could further increase efficiency by spreading out large orders based on availability over time, rather than single executions that could destabilize prices radically. This miracle of a protocol upgrade also includes utilizing out-of-range liquidity into lending protocols (which is abso-fu*king-lutely brilliant), internalizing MEV profits back to the LPs (holy amazing), and auto-compounding profits to amplify LP growth. This heightened level of customization is game-changing by improving experience by an order of magnitude (at least for market makers, it still doesn’t seem like users are the focal point of the upgrade). Worth noting here that this new design module is NOT open source; it is protected by IP until 2027. 5. Cumulative On-Chain State Uniswap’s dominance and importance cannot be understated. The degree of its influence can be thoroughly understood whenever presented through the lens of its aggregate statistics. Easily supporting monthly volumes north of $12 Billion USD and hosting over $3 Billion USD worth of TVL even in the challenging economic environment of the last market downturn proves the anti-fragile state of the protocol. Facilitating over 155,000,000 trades worth an aggregate USD-denominated volume of $1.5 Trillion brings the nominal average trade side to approximately $10,000. Housing over 230,000 liquidity pairings across 110,000 Liquidity providers, the diversity of market makers and token pools is roughly 2:1. This is only the tip of the iceberg; to appreciate this information to its fullest, it is best to take a visual approach. Dive into the and see . For those looking for more chart porn, here is (IMO, DefiLlamma provides the best insight for simple info and Dune for very specific data). On-Chain Data via Dune Analytics here UniSwap Direct Data Source here DefiLlamma’s data set. 6. Retail & Consumer Friendly Product This is a factor that has already been known about Uniswap for a long time; the interface through which they provide their technology is possibly one of (if not the) most user-friendly experiences. The simplicity of the swap interface had a shift in usability reminiscent to that of Amazon’s one-click buy. Obviously, the back end of Uniswap of extremely complex, but they do a fantastic job of making it easy for the end users (not accounting for MEV). 😞 Weaknesses (Internal) (Harmful) 1. No Value Accrual to $UNI token The $UNI token is extremely limited in its economic relationship to the Uniswap platform. It has no direct vector through which the exchange activity reflects itself in the token’s value. The single application of the $UNI token is governance. While this is potentially what will keep them out of the cross-hairs of politicking that will undoubtedly buckle other crypto projects, it is also a huge disappointment considering how much potential value is just being left on the table and keeping investors from developing greater monetary interest in the $UNI Token. 2. Governance Power Centralized A16Z owns an outsized portion of $UNI tokens and has exhibited that it is capable of swaying the development/direction of the project as they find fit. While the presence of such a powerful VC firm signals a very high degree of confidence in the project, it also denies the whole aspect of decentralization by masquerading it behind pseudonyms. While there have been two sides to the argument as to whether this is true or not, the simple fact that A16Z has actually made a public commitment to reduce its influence over the platform signals a subtle, silent yes (IMO). 🧐 Opportunities (External) (Helpful) 1. Integrations with nearly every Dapp Uniswap is the go-to exchange solution that gets integrated into the interfaces/backends of most other projects. The level of trust, quality, settlement guarantee, and prominence that Uniswap has makes them the default option for other projects that are looking to integrate the swap function into their applications. Moreover, the API of Uniswap dominates the industry so deeply that every new swap/exchange or aggregator is built with some degree of reliance on Uniswap. 2. Untapped Chains Currently, Uniswap is deployed across six major EVM networks, Ethereum, Binance Smart Chain, Arbitrum, Optimism, Polygon, and Celo. Considering that there are still swaths of EVM-compatible networks still awaiting Uniswap’s arrival (such as Fantom, Tron, Avalanche, Harmony, and so on) this ecosystem is still young. Whenever we take a step back and remember the gargantuan amount of non-EVM networks such as Solana, Polkadot, Ripple, Sui, Aptos, Cosmos, Hedera, VeChain, and so on), then it becomes clear that Uniswap is only beginning its ascension across the greater industry. 3. No Regulatory Kerfuffle Even though so many crypto projects have been in the line of regulatory fire, Uniswap seems to have been able to avoid legal pursuits. Perhaps they designed their systems with the highest degree of intelligence in this regard, or there could be insider action going on, but we’ll just have to give them the benefit of the doubt here. 😳 Threats (External) (Harmful) 1. Target for the most MEV MEV is the Achilles heel in terms of quality user experience within DEFI. Uniswap being a focal point of liquidity that facilities the most exchange activity, it is the protocol that every single MEV bot targets. Early-stage or lesser-known protocols might be able to slide under the radar of being targeted by MEV, but Uniswap cannot have a single action take place without some nosey leech (in the form of an MEV operator) trying to squeeze and manipulate it. While this does not necessarily harm Uniswap at the protocol level, it does trickle the inefficiencies over to end users that then have sub-par experiences, which might then consider avoiding to use Uniswap, ultimately translating to a potential dissuasion from the user’s end. Takeaway UniSwap is the King and Queen of Decentralized exchanges. Bordering on a monopolistic grasp on the industry's exchange liquidity, UniSwap is a force of cryptographic nature that will likely not have any competition large or intelligent enough (at least within the domain or crypto) to compete with them. They stay at the forefront of innovation by leading with technology, securing their position with excellent usability for the layman, and controlling the mind-share of developers that operate on different applications. The negatives seem to be stemming from design decisions relating to political navigation. All of the externalities of undesirable properties relate primarily at the external and token level, neither of which is existentially threatening. Conclusion Right now, the project is tailored more to attracting liquidity and market makers/LPs than it is focused on usability. This feels like the final stage of internal technological evolution that must take place before they shift their efforts to focus on the retail side of things. Their focus on growing the development of infrastructure without focusing on generating profits/revenues directly to themselves feels like what Amazon did by forgoing profit distributions and relentlessly cycling their profits back into growing the business. My god, if Uniswap makes a few adjustments to its token logic, it would unleash a floodgate of demand for $UNI. $UNI has the potential to be the Amazon of crypto. (NFA). I have never actually had any $UNI because I was butthurt about missing out on their initial airdrop distribution. It might be time for me to rethink my position on them and consider dialing in a small bag into the portfolio; nothing major, just something to keep around. If you know something that I don’t or feel as though I might have missed anything worth noting, please do share; I would tremendously appreciate some feedback. Thank you so much for reading, I hope this serves you well on your journey. Live long and prosper 🥂 Also published here.

The Uniswap (UNI) SWOT Analysis 

Hey there, Hackernooners! This is , and I created this article about the essential metrics for success in Web3. You must read it if you're a startup founder, marketer, or C-level manager in this fast-growing industry. Daria Volkova I know, and you know, that But in Web3, it's a little different. You need to first, and profit will follow. money is the main focus of traditional businesses. focus on creating value consistent with the expectations and needs of the Web3 community The most important thing is understanding who needs your product and who will use it. So, to start Web3, projects should focus on creating a community that is interested in the project's Value Proposition. The product's value will lead to profit. If not, it is not valuable to the audience and does not solve any real problem; maybe no one is ready to use it even for free. So, forget about chasing after money like it's the last pizza slice at a party😉 Instead, ask yourself these questions: Are we bringing users together? Are users feeling heard in the project's roadmap? Do users get a sense of ownership? Are users incentivized to make this project succeed? Are users getting constant value beyond the initial monetary value exchange? Is the initiative's vision clearly communicated to the community? If you answered "yes" to these questions, my congratulations 🎉 You're doing a great job staying within the Web3 philosophy. And if you keep it up, the community will support you even if you're not using the latest tech trend. So, what metrics should you look at instead of just profits? Here are a few: ✅ Community size ✅ Community activity ✅ Community sentiment ✅ Community retention/churn And if you're wondering how to measure your success, check out . Total Value Locked (TVL) Total Value Locked 💸 This metric counts the total value of digital assets locked in a DeFi protocol or smart contract. The higher the TVL, the more reliable the DeFi platform or DApp is. In simple words, this is an indicator of the level of trust in a particular project. How is TVL calculated? The process generally involves adding up the digital assets currently locked in a specific DeFi protocol or smart contract. These assets could include cryptocurrencies, stablecoins, or other tokens used as collateral for loans or provide the platform with liquidity. For example, if a DeFi platform is calculating its own total value locked and has $10 million worth of ETH, $5 million worth of USDT, and $2 million worth of other ERC-20 tokens locked in its smart contract, then its TVL would be $17 million. 👉🏻 Usually, investors rely on TVLs calculated by third-party DeFi analytics platforms like and . These platforms use application programming interfaces (APIs) and web scraping to gather the data they need to calculate. Token Terminal, Dune Analytics, DeFi Lama, CoinGecko L2BEAT Here is an interface of . It’s pretty simple and understandable, even for newbies in the blockchain. I use this tool to learn more about projects and their potential. Dune Analytics And on the platform, you can compare the TVL of different Ethereum scaling layer 2 projects. L2BEAT Unique Addresses 🪪 You also have to pay attention to Unique Addresses. A blockchain address is a unique sequence of numbers and letters and functions like an email address. It refers to a specific destination on the network where cryptocurrency can be sent to and used only once. The idea is to give people unique addresses every time they are to receive crypto. This shows us how many people are embracing the Web3 lifestyle. And let's be honest, the more the merrier! Plus, comparing unique addresses to the number of internet users gives us an idea of how much room there is to grow. The chart shows the total distinct numbers of addresses on the Ethereum blockchain and the increase in the number of addresses daily. The highest growth of new addresses was recorded on Thursday, January 4, 2018. The lowest increase of new addresses was recorded on Thursday, August 6, 2015. 355,726 41 Daily or Monthly Active Users 👯 The number of Active Users who interact with an application can be tracked daily, weekly, and monthly. The number of Active Users who interact with an application daily is called Daily Active Users (DAU). Similarly, the number of Active Users each month is known as Monthly Active Users (MAU). Here you can see the example of Active Daily Users on : Uniswap Token Terminal This picture shows information about Market Capitalization, Token Price, Trading Volume, Treasury, and Active Daily Users. Understanding the market and comparing your project with benchmarks is helpful. Monthly Active Developers 👨🏻‍💻 Additionally, we've got such Metrics as Monthly Active Developers. This is like the headcount of computer whizzes working on a specific blockchain network. In this picture, you can find out the most popular blockchains for developers: Unsurprisingly, Ethereum is the most common blockchain platform to build on. But, unexpectedly, Kusama and Polkadot are so popular now among developers and much more popular than Polygon or Solana! Crypto Market Capitalization 💰 Now, let's get down to the nitty-gritty: the impact of Web3 on the real world. We're talking Crypto Market Capitalization, and this is like the total of coins and tokens in the Web3 world. And it's a pretty penny! Here you can see the screenshot from Coin Market Cap, and it’s the most popular and convenient website to learn about Market Capitalization. If you build your project with tokenomics, it must be on Coin Market Cap. Conclusion So, does a Web3 project need to focus exclusively on profit and consider it on day one? My answer is no. In this article, I talked about the leading indicators by which you can evaluate the success of a project in Web3, in addition to profit. Web3 is a venture, and the main task of such projects is to interest people and form the idea of a new reality. The bottom line is this: focus on creating value for the community first, and the money will come. And let's make some blockchain magic happen! If you like this article, you can follow me on , , and 💚 YouTube Linkedin Twitter

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