DeFi’s downturn deepens, but protocols with revenue and fee sharing could thrive
At the moment, liquidity is hard to come by, but crypto traders and protocols still need inflow and revenue to remain functional.
As the crypto winter drags on, savvy crypto investors have realized that one of the reliable sources of passive income that still exists can be found on protocols that generate revenue and share some of it with their respective communities.
Platforms that earn real yield through useage fees are the obvious winner in the bear market, That mean perpetuals and options as they are profitable bear or bull. Thats why #GMX is hot, #snx fees up massively and #eth is just a no brainer.
Let's take a look at some of the protocols that continue to thrive in the current down market.
Data from Token Terminal shows revenue positive platforms are primarily the nonfungible token (NFT) marketplaces like LooksRare and OpenSea.
Aside from a few select protocols including MetaMask, Decentral Games, Axie Infinity and Ethereum Name Service, the majority of the remaining protocols with the highest revenue are decentralized finance platforms, showing that while DeFi is down, it's not out of the game.
DeFi protocols and decentralized applications (DApps) that offer fee sharing to token holders and liquidity providers are also revenue positive.
Historical view of crypto/web3 projects that generate fee revenue to their token holders.Protocol revenue market share leaders in '21:Q1: MakerDAO Q2: PancakeSwapQ3: Axie InfinityQ4: Ethereum pic.twitter.com/zNRFnss7c4
As the bear market continues to batter prices and eliminate unprofitable and poorly managed platforms, protocols that offer token holders passive income streams have a higher chance of enduring until the next bull market begins.
Related: DeFi Summer 3.0? Uniswap
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