How Do You Forecast Future Protocol Revenue for a Crypto Project?

Forecasting protocol revenue involves projecting the growth of key adoption metrics, such as the number of active users, daily transaction volume, and the average transaction fee. This requires market research on the total addressable market (TAM) and the project's expected market share.

Revenue can come from transaction fees, lending interest, or subscription-like services. Projections are typically segmented into a high-growth phase and a stable terminal phase, with sensitivity analysis to account for high uncertainty.