Research Finds That Most Cryptocurrency Projects Generate Monthly Revenues Below $1,000

Research by 5 Phut Crypto and Storible

According to a study conducted by 5 Phut Crypto in collaboration with Storible, most cryptocurrency projects do not generate significant revenue, with as much as 85% earning less than $1,000 per month.

This analysis, carried out in February this year and covering 4,928 cryptocurrency projects, also found that 95% of decentralized finance (DeFi) projects have monthly revenues below $1,000. Even among projects valued at one billion dollars, 86% failed to surpass this seemingly insignificant threshold.

However, there are still standout cryptocurrency projects that have managed to break through the odds. For example, the Solana ecosystem token issuance platform Pump.fun reached a monthly revenue of $100 million within just 10 months. Nevertheless, the platform’s revenue has significantly declined over the past two months due to the overall cooling of the market.

5 Phut Crypto stated in the report:

“A small number of cryptocurrency projects achieved $500 million in revenue faster than traditional tech companies.”

The study also pointed out that the few successful projects that generated revenue often outperformed traditional businesses in terms of speed and scale. Researchers compared the top 25 traditional tech companies by market capitalization with the top 25 cryptocurrency projects by revenue, analyzing the time it took them to reach an annual revenue of $500 million. The results showed that traditional tech companies generally take an average of 12.2 years to achieve $500 million in annual revenue, while successful crypto projects can reach this milestone in less than six years, with Pump.fun being one such case.

Source: 5 Phut Crypto

The study also challenged the notion that “tokens are a necessary condition for the success of cryptocurrency projects,” stating that companies like the cryptocurrency wallets MetaMask, Phantom, and automation tool Photon have generated substantial revenue without issuing tokens.