Tomasz Tunguz (Theory Ventures) · 2022-08-30 · 1374d

Web3 Revenue Diversification Away from NFTs as L1 Blockchains Shift Developer Investment Strategy

Web3 revenue concentration is shifting dramatically as NFT marketplaces and L1 blockchains experience significant declines while DeFi sectors remain stable. L1 revenue share has fallen from 78% in January to 41% by August 2022, while NFT share grew to 23% and DEX/exchanges surged to 20%. L1 ecosystem funds are expected to subsidize diverse application development categories over the next 12-18 months to stabilize revenue and strengthen ecosystems.

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Metrics in this report

DEX Revenue Decline

10%

YTD change

January to August 2022

Exchange/DEX Revenue Share - August 2022

20%

point-in-time

of total public web3 project revenue

Exchange/DEX Revenue Share - January 2022

6.4%

point-in-time

of total public web3 project revenue

L1 Monthly Revenue Decline

57%

YTD change

January to August 2022

L1 Revenue Share - August 2022

41%

point-in-time

of total public web3 project revenue

L1 Revenue Share - January 2022

78%

point-in-time

of total public web3 project revenue

NFT Collection Price Floor Decline

50%

peak-to-current

Bored Apes and CryptoPunks

NFT Marketplace Revenue Decline

62%

YTD change

January to August 2022

NFT Revenue Share - August 2022

23%

point-in-time

of total public web3 project revenue

NFT Revenue Share - January 2022

5.9%

point-in-time

of total public web3 project revenue