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.
Glossar
Future Protocol Revenue
Yield ⎊ Future Protocol Revenue, within the context of cryptocurrency derivatives and financial engineering, represents the anticipated stream of economic benefits derived from a protocol's operational activities, specifically those linked to derivative products like options and perpetual swaps.
Total Addressable Market
Scope ⎊ Total Addressable Market, within cryptocurrency derivatives, represents the maximum revenue opportunity available to exchanges and protocol developers offering products like perpetual swaps, options, and futures tied to digital assets.
Revenue
Yield ⎊ Revenue within cryptocurrency, options trading, and financial derivatives represents the economic gain derived from deployed capital, factoring in both explicit payouts and implicit benefits like optionality value.
Protocol Revenue
Income ⎊ The revenue generated by the underlying decentralized protocol itself, often sourced from transaction fees, liquidation penalties, or interest accrual within the system that supports the derivatives market.