Time to talk about revenue as the North Star metric for protocols.
TVL was a fine way to normalize across defi protocols when the defi phenomenon first started in 2020.
It can make sense to anchor on precursor metrics in a hyper growth environment. Much like the internet spent a decade indexing and valuing clicks and users as an upstream proxy metric for eventual revenue. Then revenue materialized at scale with two primary business models: search and social ad monetization; two sided marketplace rake.
But crypto has matured since 2020, revenue now exists, and so must our industry metrics as well.
Revenue >>> TVL as a metric.
The more things change the more things look the same.
Solana app revenue hit $193M in August 📈
I've got a fever, and the only prescription is more founders, apps, and tokens
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