Over the years, many web3 startups have struggled to scale and retain a stable user base. Despite the initial hype around decentralisation, the core challenge remains in building sustainable long-term business models across competitive sectors like gaming, entertainment, social media, and DeFi.
Understanding fundamental economics - such as low high / high FDV, market caps will become increasing important.
Unfortunately, many projects continue to prioritize short-term token pumps over sustainable growth. After the cycle peak in 2021, many startups failed to even reach close to their previous ATHs let alone break their ATHs (only $BTC, $BNB have managed to do that in the top tokens), with hardly a handful of them a few managing to even survive from previous cycles of 2017-2018.
One major issue in past Web3 cycles has been the absence of robust business models. While software development cycles typically takes 5-7 years to mature, projects like even Ethereum are still only 8 years in, and others like Solana are hardly 5 years in. It’s just very difficult . As a result, many projects have fallen into the trap of relying on token hype, which generates short-term excitement but really doesn’t offer any strong long-term value beyond governance.
This imbalance between speculation around the token and actually being able to have any value accrual and token utility is one of the major whitespaces in the ecosystem even currently.
I believe the true potential of web3 lies in its intersection with real-world industries like energy, AI, IoT, and supply chain. By focusing on these building applications, web3 can finally deliver on its promise of ownership, transparency, and broader societal impact - moving beyond speculation to create lasting value.
There’s a clear shift toward creating tokens that are tied to real business models and tangible revenue. Projects should no longer rely on hype and narrative positioning to boost token prices; instead, the focus should be on delivering real value - through mechanisms like voting rights, access to services, or utility that drives long-term engagement to the users and accrues value back the the token via burning, staking.
Both investors and users are now prioritizing projects that offer sustainable benefits. Concepts like staking, token burning, and user rewards are helping to strengthen these projects and ensure their growth. For example, Uniswap recently decided to rewards its users with fees for trading and providing liquidity
This shift points to a future where tokens are not just tools for trading on the secondary but actually become an integral part of the project.
So, now let’s try to really understand which are a few sectors or ecosystems that are doing pretty well and able to generate a consistent cash flow and actually usage by the users.
Even though many of the projects are still in the development phase or just launched, most are shifting towards figuring out important business metrics and justifying them like revenue, profits and user-base other than only focusing on volume and no.of txns.
Here are a few industries that have been doing pretty well and are known to be cash-rich sectors which actually have less of a speculative problem but more issues around bootstrapping, distribution in the initial stages, once they are figured out - these turn in cash-cow businesses.
→ DePIN
→ Social Platforms
→ Launchpads
→ DeFi Products
The core difference between Web3 and Web2 companies lies in how they generate revenue and operate. Web2 relies on centralized models like subscriptions, ads, and enterprise sales. In contrast, Web3 leverages decentralized models such as tokenomics, transaction fees, staking, and DeFi yields, creating value for both the platform and its users.
Web2 derives value by:
Web3 shifts control to communities through:
While this decentralization offers new opportunities, it also introduces hurdles like complex UX, regulatory challenges, and scalability issues (e.g., blockchain congestion, high gas fees).
Web3 startups benefit from quick product launches using smart contracts but struggle with:
For long-term success, the focus must shift to building sustainable revenue models and converting them into real token utility rather than relying on hype.
Here are a few different types of models and how they are used across sectors:
Projects that have some real-world utility have consistently outperformed those reliant on speculative tokenomics on a long term level.
Revenue-driven models are slowly becoming become the foundation for the most successful web3 ventures, proving their value through sustainable business models that appeal to both users and investors alike.
This chart provides a comprehensive view of top revenue-generating crypto projects.
It’s great to see projects like tether, tron, eth have been dominating the space and are all chains / coins in themselves, which forms the base layer of web3.
When looking at the fastest apps to reach $100M in revenue, we notice a strong connection between real utility and financial performance of the project.
Let’s look at some of the most interesting projects out there currently.
1.Helium
Helium has been one of the top-performing projects in 2024, focusing on mobile carrier services as an alternative to traditional providers. It’s focusing on consumer scale and onboarding, and leverages solana for settlement.
Its token’s value is tied to network usage, not hype.
Since June, the network has attracted 756,000 users, transferring over 19.1 TB of data. The best part is that most users don’t even realize they’re interacting with blockchain. The sign-ups have surged over the past year, reflecting Helium’s solid push towards mainstream adoption.
According to depin.ninja’s stats, helium ranks as the top project in terms of revenue generated in recent times. They’ve been doing some amazing work and with halving in 2025, it’ll be interesting to see how the revenues rise.
2.DeX’s (Uniswap, Jupiter)
Uniswap remains the largest DEX, consistently generating strong trading volumes. However, with the recent surge in Solana’s popularity, Solana-native DEXs like Jupiter have started to take a notable share of the market away from Uniswap.
Overall, the DEX landscape looks promising, with platforms generating fees per transaction and handling large volumes. Across the top five DEXs alone, trading volumes are approaching $45 billion, a figure that’s impressive compared to almost all other sectors.
3.Farcaster
Farcaster is probably the biggest crypto social media platform focused on user-owned content and engagement. Instead of relying on token speculation, users pay for permanent storage of their accounts, which has helped the platform generate some decent revenues.
It has also gained traction thanks to support from the memecoin community and degens joining the app. Although its revenue is lower compared to other sectors, Farcaster stands as the leading protocol in the crypto social space. It will be interesting to see how they scale to reach their goal of 10 million users in the coming years.
4.GEOD
GEODNET is the world’s largest Web3-based RTK network, providing highly accurate location services for AI, IoT, and autonomous systems. By using Real-Time Kinematics (RTK), GEODNET aims to deliver a 100x improvement in position accuracy compared to traditional GPS.
This enhanced precision is crucial for applications that rely on on-device sensors like
Which makes it a key player in powering AI-driven autonomous systems.
5.Across Protocol
Across Protocol is a cross-chain bridge that enables seamless asset transfers between different blockchains. It earns revenue by charging fees for these transfers, making its success directly tied to the demand for fast and secure cross-chain liquidity. As more assets move across chains, especially with the increasing adoption of multi-chain ecosystems, Across has positioned itself as a critical player in this space.
Over the past month, Across Protocol has dominated Ethereum chain transactions through JumperExchange, handling over 60% of all bridges from Ethereum. This strong performance shows its growing influence in cross-chain operations. Powered by “intents,” a new approach to cross-chain interoperability, Across is setting the standard for smooth and efficient user experiences when moving assets between blockchains.
As compared to other bridges, it tends to offer an extremely low wait list in seconds as compared to that of minutes by other providers.
It’s also been slowly climbing up in the race of cross-chain transfer provider networks.
6.Kamino Finance
Kamino specialises in optimizing liquidity management and offers users a suite of tools like lending, borrowing, and leverage strategies.
The platform has seen impressive growth, reaching an annual recurring revenue (ARR) of nearly $14 million.
Over the past year, Kamino has generated around $30 million in cumulative interest for its users, highlighting its ability to deliver consistent returns through its DeFi offerings.
7.Stablecoins (Tether & Circle)
Stablecoins have become essential in the Web3 space, with Tether (USDT) and Circle (USDC) leading the charge. These two giants dominate the market, serving as the go-to stablecoins for traders, developers, and users alike. Their widespread adoption and liquidity make them the backbone of many decentralized finance (DeFi) platforms.
Tether, in particular, is often compared to major Web2 financial players like JPMorgan, Visa, and Mastercard, due to its rapid rise and dominance in the financial ecosystem. In a short span, it has managed to surpass many traditional giants in market reach and integration within crypto markets.
Both Tether and Circle consistently outperform other stablecoin providers and blockchain-based protocols, commanding the largest market share in web3. Their stability, liquidity, and integration across various chains and dApps set them apart, making them a crucial part of the space.
Takeaway:
Friend.tech is a good case in how a project can generate buzz and revenue quickly but fail to build long-term sustainability.
A good example of “Why not all revenue-making startups are successful?”
The apps’s rise was driven by users buying ‘keys’ (shares) of others, hoping their value would rise as users gained popularity and more and more users will start joining in over a period of time. However, with no real utility beyond speculative trading, users quickly lost interest once the initial excitement faded. And moreover the initial hype can also be attributed to the fact that the team had teased an airdrop to the early participants - but since the airdrop happened, hardly there’s been any utility and usage of the platform.
Speculation-driven economies are inherently fragile—users seek quick gains but leave when no substantial value is offered. In contrast, platforms like Uniswap and Helium have maintained long-term engagement by offering real-world utility, proving that sustainable success comes from creating lasting value, not hype.
Friend.tech lacked this foundation, and once the speculative buzz wore off, there was little to keep users engaged.
The takeaway is clear: for web3 platforms to thrive, they need to offer something of substance beyond speculation.
Projects that lean too heavily on token-pumping may achieve rapid success but struggle to maintain that momentum. Token prices in these ecosystems are often driven by hype and speculation, but without a solid foundation of utility, users quickly lose interest. Once the excitement fades and users realize there’s no deeper value, token prices crash, leading to a downward spiral as users exit.
This issue was clear in Axie Infinity, which relied on a dual-token system to support its growing player base. As more users joined, the economy became overinflated, and token rewards could no longer sustain the user growth. Eventually, the entire system collapsed as the token economy couldn’t keep pace with the influx of players.
Axie infinity chart
A similar problem occurred with STEPN, a fitness app that initially attracted users by offering token rewards for physical activity. However, as token supply increased and prices fell, user engagement dropped, revealing a fundamental flaw in relying solely on token incentives to drive long-term participation.
Even though Axie made significant revenue through marketplace fees and in-game purchases, the project’s dependence on token growth and user expansion ultimately failed when the growth rate slowed.
Similarly, STEPN, a fitness app that initially attracted users with token rewards, failed to maintain engagement once token prices fell due to oversupply.
Even though Axie made money through purchases and marketplace fees, its model relied too much on user growth and token rewards, which eventually failed when growth slowed down.
Web3 gaming vs Web2 gaming
The challenges faced by projects like Friend.tech and Axie Infinity highlight a broader issue within the Web3 gaming space. Compared to traditional web2 games, web3 games struggle to generate similar revenue. For example, a recent web2 game made $600 million in its first week alone— web3 games haven’t come close to achieving such numbers. This isn’t because web3 gaming is a bad concept; rather, it’s because the technology isn’t being used to its full potential, leading to missed opportunities.
One major issue is that many web3 games still focus too much on token-based systems, where players are incentivized by financial rewards instead of the actual gaming experience. This over-reliance on tokenomics creates unrealistic expectations, with players left disappointed when the gameplay doesn’t live up to the hype. To truly compete with web2 gaming, web3 projects need to shift their focus to what makes games fun and engaging in the first place. The technology should enhance gameplay, not become the focal point.
To succeed, web3 gaming must pivot towards gameplay-first models. Blockchain technology has the potential to provide innovative experiences, but it should serve as a tool to enhance immersion, not as the driving force behind the entire economy. Web3 games will only reach their potential when the emphasis moves from token economies to creating truly enjoyable and engaging player experiences.
→ Financial metrics for success
→ User-centric design
→ Challenges to implementing utility
Web3 holds immense potential, but lasting success requires moving beyond token speculation. Projects like Friend.tech and Axie Infinity show that while hype can create quick wins, but it doesn’t translate into sustained long-term growth.
To boom, web3 platforms must focus on building real value - that starts with:
Simplifying user experience and addressing real-world needs will drive lasting engagement. Overcoming technical challenges like scalability, interoperability, and navigating regulations will be crucial for wider adoption. The future of web3 lies in projects that blend innovative technology with practical, user-focused solutions, creating lasting impact beyond just token economics.
Over the years, many web3 startups have struggled to scale and retain a stable user base. Despite the initial hype around decentralisation, the core challenge remains in building sustainable long-term business models across competitive sectors like gaming, entertainment, social media, and DeFi.
Understanding fundamental economics - such as low high / high FDV, market caps will become increasing important.
Unfortunately, many projects continue to prioritize short-term token pumps over sustainable growth. After the cycle peak in 2021, many startups failed to even reach close to their previous ATHs let alone break their ATHs (only $BTC, $BNB have managed to do that in the top tokens), with hardly a handful of them a few managing to even survive from previous cycles of 2017-2018.
One major issue in past Web3 cycles has been the absence of robust business models. While software development cycles typically takes 5-7 years to mature, projects like even Ethereum are still only 8 years in, and others like Solana are hardly 5 years in. It’s just very difficult . As a result, many projects have fallen into the trap of relying on token hype, which generates short-term excitement but really doesn’t offer any strong long-term value beyond governance.
This imbalance between speculation around the token and actually being able to have any value accrual and token utility is one of the major whitespaces in the ecosystem even currently.
I believe the true potential of web3 lies in its intersection with real-world industries like energy, AI, IoT, and supply chain. By focusing on these building applications, web3 can finally deliver on its promise of ownership, transparency, and broader societal impact - moving beyond speculation to create lasting value.
There’s a clear shift toward creating tokens that are tied to real business models and tangible revenue. Projects should no longer rely on hype and narrative positioning to boost token prices; instead, the focus should be on delivering real value - through mechanisms like voting rights, access to services, or utility that drives long-term engagement to the users and accrues value back the the token via burning, staking.
Both investors and users are now prioritizing projects that offer sustainable benefits. Concepts like staking, token burning, and user rewards are helping to strengthen these projects and ensure their growth. For example, Uniswap recently decided to rewards its users with fees for trading and providing liquidity
This shift points to a future where tokens are not just tools for trading on the secondary but actually become an integral part of the project.
So, now let’s try to really understand which are a few sectors or ecosystems that are doing pretty well and able to generate a consistent cash flow and actually usage by the users.
Even though many of the projects are still in the development phase or just launched, most are shifting towards figuring out important business metrics and justifying them like revenue, profits and user-base other than only focusing on volume and no.of txns.
Here are a few industries that have been doing pretty well and are known to be cash-rich sectors which actually have less of a speculative problem but more issues around bootstrapping, distribution in the initial stages, once they are figured out - these turn in cash-cow businesses.
→ DePIN
→ Social Platforms
→ Launchpads
→ DeFi Products
The core difference between Web3 and Web2 companies lies in how they generate revenue and operate. Web2 relies on centralized models like subscriptions, ads, and enterprise sales. In contrast, Web3 leverages decentralized models such as tokenomics, transaction fees, staking, and DeFi yields, creating value for both the platform and its users.
Web2 derives value by:
Web3 shifts control to communities through:
While this decentralization offers new opportunities, it also introduces hurdles like complex UX, regulatory challenges, and scalability issues (e.g., blockchain congestion, high gas fees).
Web3 startups benefit from quick product launches using smart contracts but struggle with:
For long-term success, the focus must shift to building sustainable revenue models and converting them into real token utility rather than relying on hype.
Here are a few different types of models and how they are used across sectors:
Projects that have some real-world utility have consistently outperformed those reliant on speculative tokenomics on a long term level.
Revenue-driven models are slowly becoming become the foundation for the most successful web3 ventures, proving their value through sustainable business models that appeal to both users and investors alike.
This chart provides a comprehensive view of top revenue-generating crypto projects.
It’s great to see projects like tether, tron, eth have been dominating the space and are all chains / coins in themselves, which forms the base layer of web3.
When looking at the fastest apps to reach $100M in revenue, we notice a strong connection between real utility and financial performance of the project.
Let’s look at some of the most interesting projects out there currently.
1.Helium
Helium has been one of the top-performing projects in 2024, focusing on mobile carrier services as an alternative to traditional providers. It’s focusing on consumer scale and onboarding, and leverages solana for settlement.
Its token’s value is tied to network usage, not hype.
Since June, the network has attracted 756,000 users, transferring over 19.1 TB of data. The best part is that most users don’t even realize they’re interacting with blockchain. The sign-ups have surged over the past year, reflecting Helium’s solid push towards mainstream adoption.
According to depin.ninja’s stats, helium ranks as the top project in terms of revenue generated in recent times. They’ve been doing some amazing work and with halving in 2025, it’ll be interesting to see how the revenues rise.
2.DeX’s (Uniswap, Jupiter)
Uniswap remains the largest DEX, consistently generating strong trading volumes. However, with the recent surge in Solana’s popularity, Solana-native DEXs like Jupiter have started to take a notable share of the market away from Uniswap.
Overall, the DEX landscape looks promising, with platforms generating fees per transaction and handling large volumes. Across the top five DEXs alone, trading volumes are approaching $45 billion, a figure that’s impressive compared to almost all other sectors.
3.Farcaster
Farcaster is probably the biggest crypto social media platform focused on user-owned content and engagement. Instead of relying on token speculation, users pay for permanent storage of their accounts, which has helped the platform generate some decent revenues.
It has also gained traction thanks to support from the memecoin community and degens joining the app. Although its revenue is lower compared to other sectors, Farcaster stands as the leading protocol in the crypto social space. It will be interesting to see how they scale to reach their goal of 10 million users in the coming years.
4.GEOD
GEODNET is the world’s largest Web3-based RTK network, providing highly accurate location services for AI, IoT, and autonomous systems. By using Real-Time Kinematics (RTK), GEODNET aims to deliver a 100x improvement in position accuracy compared to traditional GPS.
This enhanced precision is crucial for applications that rely on on-device sensors like
Which makes it a key player in powering AI-driven autonomous systems.
5.Across Protocol
Across Protocol is a cross-chain bridge that enables seamless asset transfers between different blockchains. It earns revenue by charging fees for these transfers, making its success directly tied to the demand for fast and secure cross-chain liquidity. As more assets move across chains, especially with the increasing adoption of multi-chain ecosystems, Across has positioned itself as a critical player in this space.
Over the past month, Across Protocol has dominated Ethereum chain transactions through JumperExchange, handling over 60% of all bridges from Ethereum. This strong performance shows its growing influence in cross-chain operations. Powered by “intents,” a new approach to cross-chain interoperability, Across is setting the standard for smooth and efficient user experiences when moving assets between blockchains.
As compared to other bridges, it tends to offer an extremely low wait list in seconds as compared to that of minutes by other providers.
It’s also been slowly climbing up in the race of cross-chain transfer provider networks.
6.Kamino Finance
Kamino specialises in optimizing liquidity management and offers users a suite of tools like lending, borrowing, and leverage strategies.
The platform has seen impressive growth, reaching an annual recurring revenue (ARR) of nearly $14 million.
Over the past year, Kamino has generated around $30 million in cumulative interest for its users, highlighting its ability to deliver consistent returns through its DeFi offerings.
7.Stablecoins (Tether & Circle)
Stablecoins have become essential in the Web3 space, with Tether (USDT) and Circle (USDC) leading the charge. These two giants dominate the market, serving as the go-to stablecoins for traders, developers, and users alike. Their widespread adoption and liquidity make them the backbone of many decentralized finance (DeFi) platforms.
Tether, in particular, is often compared to major Web2 financial players like JPMorgan, Visa, and Mastercard, due to its rapid rise and dominance in the financial ecosystem. In a short span, it has managed to surpass many traditional giants in market reach and integration within crypto markets.
Both Tether and Circle consistently outperform other stablecoin providers and blockchain-based protocols, commanding the largest market share in web3. Their stability, liquidity, and integration across various chains and dApps set them apart, making them a crucial part of the space.
Takeaway:
Friend.tech is a good case in how a project can generate buzz and revenue quickly but fail to build long-term sustainability.
A good example of “Why not all revenue-making startups are successful?”
The apps’s rise was driven by users buying ‘keys’ (shares) of others, hoping their value would rise as users gained popularity and more and more users will start joining in over a period of time. However, with no real utility beyond speculative trading, users quickly lost interest once the initial excitement faded. And moreover the initial hype can also be attributed to the fact that the team had teased an airdrop to the early participants - but since the airdrop happened, hardly there’s been any utility and usage of the platform.
Speculation-driven economies are inherently fragile—users seek quick gains but leave when no substantial value is offered. In contrast, platforms like Uniswap and Helium have maintained long-term engagement by offering real-world utility, proving that sustainable success comes from creating lasting value, not hype.
Friend.tech lacked this foundation, and once the speculative buzz wore off, there was little to keep users engaged.
The takeaway is clear: for web3 platforms to thrive, they need to offer something of substance beyond speculation.
Projects that lean too heavily on token-pumping may achieve rapid success but struggle to maintain that momentum. Token prices in these ecosystems are often driven by hype and speculation, but without a solid foundation of utility, users quickly lose interest. Once the excitement fades and users realize there’s no deeper value, token prices crash, leading to a downward spiral as users exit.
This issue was clear in Axie Infinity, which relied on a dual-token system to support its growing player base. As more users joined, the economy became overinflated, and token rewards could no longer sustain the user growth. Eventually, the entire system collapsed as the token economy couldn’t keep pace with the influx of players.
Axie infinity chart
A similar problem occurred with STEPN, a fitness app that initially attracted users by offering token rewards for physical activity. However, as token supply increased and prices fell, user engagement dropped, revealing a fundamental flaw in relying solely on token incentives to drive long-term participation.
Even though Axie made significant revenue through marketplace fees and in-game purchases, the project’s dependence on token growth and user expansion ultimately failed when the growth rate slowed.
Similarly, STEPN, a fitness app that initially attracted users with token rewards, failed to maintain engagement once token prices fell due to oversupply.
Even though Axie made money through purchases and marketplace fees, its model relied too much on user growth and token rewards, which eventually failed when growth slowed down.
Web3 gaming vs Web2 gaming
The challenges faced by projects like Friend.tech and Axie Infinity highlight a broader issue within the Web3 gaming space. Compared to traditional web2 games, web3 games struggle to generate similar revenue. For example, a recent web2 game made $600 million in its first week alone— web3 games haven’t come close to achieving such numbers. This isn’t because web3 gaming is a bad concept; rather, it’s because the technology isn’t being used to its full potential, leading to missed opportunities.
One major issue is that many web3 games still focus too much on token-based systems, where players are incentivized by financial rewards instead of the actual gaming experience. This over-reliance on tokenomics creates unrealistic expectations, with players left disappointed when the gameplay doesn’t live up to the hype. To truly compete with web2 gaming, web3 projects need to shift their focus to what makes games fun and engaging in the first place. The technology should enhance gameplay, not become the focal point.
To succeed, web3 gaming must pivot towards gameplay-first models. Blockchain technology has the potential to provide innovative experiences, but it should serve as a tool to enhance immersion, not as the driving force behind the entire economy. Web3 games will only reach their potential when the emphasis moves from token economies to creating truly enjoyable and engaging player experiences.
→ Financial metrics for success
→ User-centric design
→ Challenges to implementing utility
Web3 holds immense potential, but lasting success requires moving beyond token speculation. Projects like Friend.tech and Axie Infinity show that while hype can create quick wins, but it doesn’t translate into sustained long-term growth.
To boom, web3 platforms must focus on building real value - that starts with:
Simplifying user experience and addressing real-world needs will drive lasting engagement. Overcoming technical challenges like scalability, interoperability, and navigating regulations will be crucial for wider adoption. The future of web3 lies in projects that blend innovative technology with practical, user-focused solutions, creating lasting impact beyond just token economics.