NEAR Protocol Surpasses Ethereum in Daily Users, Yet Struggles with Revenue
In the ever-evolving landscape of blockchain technology, a new contender has emerged from the shadows, and its name is NEAR. With the blockchain ecosystem continually expanding, recent statistics and tweets from prominent DeFi researcher @ThorHartvigsen have caught the attention of the crypto community. NEAR, a relatively new blockchain, has managed to surpass industry giants like Ethereum in daily active users. However, the question remains: Why does NEAR generate a meager $2,000 per day in revenue despite its massive user base? In this article, we delve into the intriguing dynamics of NEAR’s rapid rise and the challenges it faces in monetizing its success.
NEAR’s Daily Active Users Soar
According to the data shared by @ThorHartvigsen on Twitter, NEAR has achieved a remarkable feat in terms of daily active addresses. The statistics for selected blockchains from a recent day are as follows:
• NEAR – 650,000
• Ethereum – 302,000
• Polygon – 292,000
• Solana – 178,000
• Arbitrum – 128,000
• Optimism – 77,000
• Base – 71,000
These numbers indicate that NEAR has surged ahead of Ethereum, the reigning blockchain titan, in terms of daily user engagement. This surprising revelation has left many in the cryptocurrency world wondering about the reasons behind NEAR’s rapid adoption.
NEAR’s Revenue Conundrum
However, the puzzle deepens when we consider NEAR’s revenue model. Despite boasting over half a million daily users, Near manages to generate just $2,000 in daily revenue. In contrast, Ethereum and Arbitrum, with significantly fewer daily users, pull in nearly $2 million and $50,000 per day, respectively, in fees.
This stark contrast in revenue between NEAR and its competitors begs the question: What is happening with NEAR’s financial model? Is it sustainable for a blockchain platform to thrive with such low revenue despite its impressive user numbers?
Understanding NEAR’s Revenue Model
To address these questions, we reached out to blockchain experts @Artemis__xyz and @tokenterminal. Both experts concurred that NEAR’s revenue model is unique and should not be viewed solely through the lens of transaction fees. According to them, NEAR’s strength lies in its scalability and affordability.
NEAR’s fees per transaction are minuscule, often just a fraction of a cent. This low-cost structure allows NEAR to cater to a broad user base without imposing heavy financial burdens on its users. With the capacity to handle even complex interactions and plans to expand to 1 billion users, NEAR is positioning itself as a blockchain that can accommodate mass adoption.
Furthermore, NEAR employs innovative solutions like Meta Transactions to abstract away transaction costs from end-users. This approach shields users from the complexities of blockchain fees, ensuring a smooth and cost-effective experience for both developers and consumers.
The Path Ahead for NEAR
NEAR’s unique approach to blockchain technology may not be immediately apparent in terms of revenue, but it aligns with a long-term vision of mass adoption and accessibility. As NEAR continues to grow and attract more users, its revenue model may evolve to capitalize on its substantial user base. However, for now, it remains a fascinating case study in the crypto space, challenging the traditional norms of revenue generation in the blockchain industry.
NEAR’s ascent to the top of the daily active user rankings among blockchains is a remarkable achievement. However, the conundrum of its relatively low revenue compared to its competitors highlights the complexities of monetizing blockchain platforms in today’s crypto landscape. As NEAR seeks to reconcile its growing user base with its revenue model, it serves as a testament to the diverse and ever-evolving nature of blockchain technology.
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