The Dawn of Web3 Network Revenue

The proliferation of Web3 has been long anticipated but has taken time to fully manifest due to a need for infrastructure across computation, indexing, data management, hosting, storage, and other vital services.

Tracking Web3 Protocol Revenue

Data from Web3 Index shows that after years of building, several Web3 protocols are starting to experience strengthened network usage. As a result of this usage, which often requires spending of the protocol’s native token in exchange for services, these Web3 protocols are beginning to generate revenue.

Note, the Web3 Index tracks revenue from network usage – the fees being paid into Web3 networks – rather than token reward distribution. Token reward revenue to individual participants doesn’t always demand network utilization whereas revenue generated directly from network usage (burning tokens, paying fees to miners, or paying fees for services) is a stronger metric for analyzing protocol revenue and growth.

Looking closer, Web3 protocols suffer from spikes of protocol usage and revenue generation followed by troughs where protocol revenue declines.