Byron Gilliam

This is a segment from the Blockworks Daily newsletter. To read full editions, <a href="https://blockworks.co/newsletter/daily">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“The social object of skilled investment should be to defeat the dark forces of time and ignorance which envelop our future.”



— John Maynard Keynes
</blockquote>



Despite all the numbers involved, investing is widely acknowledged to be more art than science.



&#8220;Common stock selection is a difficult art,” Benjamin Graham cautioned.



Graham’s life-long student, Warren Buffett, specified that “investing is the art&#8230;of laying out cash now to get a whole lot more cash later on.”&nbsp;



Pretty much all investing boils down to predicting those cash flows.



But investors “who&#8217;ve been trained to rigidly quantify everything have a big disadvantage,&#8221; Peter Lynch warned.



That does not, however, mean that “valuation is a meme,” as financial nihilists like to claim.



Instead, it means that applying and interpreting quantifiable valuation metrics is a creative endeavor.



What valuation metric to use for which investments is a subjective decision — and knowing how to interpret the results is even more so.



A low valuation, for example, doesn’t mean a stock is cheap and a high one doesn’t mean a stock is expensive (it’s just as often the opposite).



A stock can look appealingly cheap on one metric and appallingly expensive on another.



And none of these things are obviously correlated to returns.&nbsp;



This is often cause for despair — if cheap stocks don’t go up and expensive ones don’t go down, why bother trying to figure it all out?



It’s worth figuring out, I think, because that’s what makes investing fun and interesting — and, if so, the fun of crypto investing is only just getting started.



Until recently, crypto investors didn’t have many numbers to work with beyond token price and market capitalization.&nbsp;



That made everything in crypto a “story” — which is fine!



Investing is about telling stories.



But the best investing stories are told with numbers and crypto increasingly has them because more protocols are earning revenue and more of that revenue is being passed on to token holders.



Also, these numbers are becoming more accessible thanks to the likes of <a href="https://app.blockworksresearch.com">Blockworks Research</a>, whose analysts package them up in digestible charts and report them for us.



This is helping crypto advance to a higher stage of storytelling: storytelling with numbers.



Let’s check some current ones.



<h2 class="wp-block-heading">Ethereum vs. Solana</h2>



Judging by Crypto Twitter and podcasting, it seems obvious that sentiment on Ethereum has sunk to new lows, especially relative to Solana.



But an uninitiated TradFi refugee going straight to the numbers would likely guess otherwise.



Solana recorded $36 million of “token holder net income” in April, according to Blockworks Research data, which puts the SOL token on 178x annualized earnings — a rich, but possibly fair multiple if you think current activity levels are low.



Ethereum, by contrast, did $21 million in token holder net income for April, putting the ETH token on 841x earnings.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdiIdt5yNc7TbGaCg29EnOItfhmPeu85fyxeadUGplWJpbc130wy6BDzqeDTce3BeZLf1NC1Gg0fAzrig0jhbTlO_-5aTlP52g4kMzGOOEhjDM2AyF592I_Ty8mhrxdi9jnDSw1Sw?key=b6NzDIc5luKsYjQm8mwuVQ" alt=""/></figure>



A TradFi refugee seeing ETH trading at 5x the multiple of SOL wouldn’t immediately think, “wow, why is everyone so bearish on Ethereum?”



But they wouldn’t immediately think people are 5x less positive on Solana, either.



Instead, they might conclude Solana’s revenue gets a low multiple because it mostly comes from “low-quality” memecoin activity — while Ethereum’s revenue commands a higher multiple, at least in part, because it includes higher-quality activity like real-world assets.



Now we have something to work with: If you think memecoin activity isn’t so low-quality, SOL is probably undervalued, and if you think RWAs are the future, ETH might not be so overvalued.



You could also dig a little deeper.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdz3YXAvpqD6K_wg-Emh4xjeeyYC_MTRf4tAmC3qoaCbdjivGBlLtMejijW3Soax8batKbWuH71sxhUtyYisVtEGJJHkqUuqqCJUQJHGIaHmLlnTHZAYky186RsjdDkd56qoL8y-g?key=b6NzDIc5luKsYjQm8mwuVQ" alt=""/></figure>



Blockworks Research data shows that the revenue collected by all Solana apps is only about 1.8x greater than the revenue collected by Solana.



As platform businesses go, that is a very high take rate — much higher than the maximum 30% take rate at Apple, which the US government thinks is monopolistic.



This might mean that Solana is overearning and that its token should therefore trade at a low multiple of earnings — or that Solana has a business moat and its token should therefore trade at a high multiple of earnings.



Either way, it’s a story.



<h2 class="wp-block-heading">Hyperliquid</h2>



Hyperliquid, a semi-decentralized crypto exchange, is the strange story of a protocol that earns quite a lot in revenue ($43 million in April) and pays virtually all of it out to token holders.



This has unsurprisingly helped the token outperform recently: “The assistance fund uses trading fees for token buybacks every 10 minutes,” the single-named <a href="https://x.com/salveboccaccio">Boccaccio</a> noted in a recent report for Blockworks Research, “creating consistent buy pressure.”&nbsp;



Every 10 minutes!



It’s hard to know what to make of that because there is no such thing in TradFi as a company that returns 100% of its revenue to shareholders — let alone every 10 minutes.



Judging by its valuation, crypto seems a little uncertain too.



The HYPE token trades on about 17x annualized revenue (based on market capitalization), which would normally be considered expensive.



But, in this case, revenue and earnings appear to be the same thing, so it seems pretty reasonable — if you believe the story that HYPE will continue to win business from centralized exchanges.&nbsp;&nbsp;



Boccaccio cautions that HYPE is trading at a significantly higher multiple than its decentralized peers, but also that these might not be the right peers to compare it.



“The Hyperliquid L1 would have to take a very small percentage of overall Binance daily volume to meaningfully increase its volumes…Taking just 10-15% of only the BTC/USDT pairs volume [from Binance], would lead to a 50% increase in the HyperCore volume.”



“A growth multiple is warranted,” Boccaccio concludes.&nbsp;



How much of one depends on how much you believe the story, of course.



<h2 class="wp-block-heading">Jupiter</h2>



Jupiter, a Solana DEX aggregator, returns a comparatively modest 50% of revenue to token holders (also via buybacks) — but similarly has quite a lot of it.



<a href="https://x.com/marcarjoon">Marc Arjoon</a> estimates that Jupiter may earn $280 million of revenue over the next 12 months, which would put the JUP token on a yield of about 11.5% yield, based on market cap.



In equities, an 11.5% yield would imply that the underlying business is distressed, but that does not seem to be the case here.



Jupiter is “the default router” on Solana, Arjoon writes, “currently has no equal in aggregation,” and is “the fourth-highest revenue-generating application among all crypto dapps.”



Better yet, it’s run like a business: “Jupiter’s strategic maneuvers throughout 2024-2025 reflect an organization aggressively entering a hyper-growth phase, ambitiously positioning itself as Solana’s premier crypto super-app.”



That hardly sounds like a business that should yield anything close to 11.5%.



There are plenty of risks, of course, which Arjoon details in his most recent note.&nbsp;



But his takeaway is that “Jupiter currently trades at compellingly low multiples relative to its peers, suggesting considerable upside potential even without multiple expansion.”



He even quantifies this in a sum-of-the-parts scenario analysis, which warms my TradFi heart:



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXf5jZdFKHhav5udssAeDF5sYBQ3Ols2JEqYW2r74SQtS1QmfUBNpgW2JSpgqWs0c2Y7DOgOwR4plhldVhGfMM5xCVSGmOrqIhuGqUiL1TNKXl94r4vUan2rvCvvuF5BjzM9_0uzhw?key=b6NzDIc5luKsYjQm8mwuVQ" alt=""/></figure>



Looks like a good story.



<h2 class="wp-block-heading">Helium</h2>



Helium, a decentralized telecom provider, has been a crypto story for a long time now — it was founded way back in 2013.



But now it’s a story with numbers: “Revenue as measured by data credit burn is accelerating, growing at 43% QoQ,” Blockworks Research&#8217;s <a href="https://x.com/0xMetaLight">Nick Carpinito</a> wrote in a recent note.



“Importantly, Helium’s mix of revenue is shifting from Helium Mobile to Mobile Offload, with the latter now accounting for roughly 3x more DC burn, and growing at nearly 180% QoQ, an astounding rate for a DePIN protocol selling into enterprise budgets.”



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcxW0Jfw6F0fpD2pKkB3RB32IX57drA63Bjt08Q5ErFkECKJ0v4oycIaVx287_6jYq7PEnv79HVU3EfWMU0s7HhGB7wo8mhrrmDczn4N717ntr2L05h33YaPghqqpUh4ggTTIRRpw?key=b6NzDIc5luKsYjQm8mwuVQ" alt=""/></figure>



“Mobile Offload” is the blue line above and its quarterly growth rate of 180% is an astounding number for anyone, really.



Helium’s HNT token might seem to be priced for it, trading on about 120x annualized sales.



But Carpinito told the <a href="https://youtu.be/F6BsNclvbsM?si=QKQkyLaC187ttITq&amp;t=1545">0xResearch podcast</a> that he expects revenue to accelerate thanks to a “surge in data credit use through AT&amp;T allowing its subscribers in the US to connect to Helium.”



As a result, “there’s a high likelihood that we see some HNT price appreciation over the next 12 months that is unprecedented and also much more stable than any Helium price appreciation we’ve seen in the past, which was largely based on speculation.”



It’s unusual in crypto to hear anyone make that kind of price prediction based on anything other than speculation.



And refreshing.



<h2 class="wp-block-heading">Pendle</h2>



Finally, Pendle is a “yield trading” protocol whose new offering, dubbed “Boros,” will allow users to speculate on any off-chain or onchain yield, beginning with funding rates.&nbsp;



“The implementation will look similar to a classical interest rate swap market, where traders can pay a floating rate to receive a fixed rate, or pay a fixed rate to receive a floating rate, on margin,” Blockworks Research’s <a href="https://x.com/0xMether">Luke Leasure</a> explained.



That doesn’t mean too much to an equities guy like myself, but it’s apparently a big market: “With perpetual futures markets settling nearly $60 trillion annually with hundreds of billions in open interest, Boros will enter an entirely new, enormous and untapped market,” according to Leasure, who expects that Boros could double Pendle’s revenue rate.



That’s not something you hear much in TradFi.



In a bull case, Leasure estimates that the “vote-escrowed” version of Pendle’s token might be trading on just 1.6x earnings:



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXf2aq6w286aRRLTlakCa-F1zzPsmOxPLmt4Q-3P1R_lY96Hc-1p5M1R0kMK78oB0a8_XRyyyhUPB3onOOsZ1eHVMYo2q-1K8QS0a2dji7PJADx3-1cQ9KX_Em-qCbpJUcosY9H1?key=b6NzDIc5luKsYjQm8mwuVQ" alt=""/></figure>



1.6x!



Nothing in equities ever trades on 1.6x earnings unless its business is about to fall off a cliff, which doesn’t seem to be the case here.



Still, that’s not investment advice (from me, at least) because Pendle is a complicated story — as most of them are in crypto.



But at least they’re now stories that can be told in numbers.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: Unpacking crypto and the markets.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Blockworks Research

How crypto investing is becoming a better story

Katherine Ross

This is a segment from the Empire newsletter. To read full editions, <a href="https://blockworks.co/newsletter/empire" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



When I talk to folks about success stories in crypto, Hyperliquid is often the common answer.&nbsp;



“Over the past three months, the platform has averaged $6.4 billion in daily trading volume, which sits just above 50% of the daily trading volumes of Bybit and OKX,” Blockworks Research’s Boccaccio wrote in a <a href="https://app.blockworksresearch.com/research/hyperliquid-not-done">recent report. </a>



“As of today, the BTC OI [open interest] on Hyperliquid sits at $1.4B, which is 15% of Binance ($9.2B), 46% of OKX ($3B) and 25% of Bybit ($5.6B),” Boccaccio wrote. 



To put that into perspective, Jupiter Perps — the closest competitor to Hyperliquid — averages $704 million in daily trading volume, 88% lower than Hyperliquid.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdE6OC7whWrP2myWF7sf2xnah1DuCFnVwBWa4y3Sg6HJz2HTu3V4vPF13ASYLqhXAh5bI4dZkFXd1hALE-2S9DH68mGtFF4yGjnMCwOsaWvRcvPNmjvxGuL7acsTFb9WyA4OPhNbg?key=Ciq3U7CPgJ9LFPr2ZJgHd83d" alt=""/><figcaption class="wp-element-caption">A look at perps DEX volumes across the board. </figcaption></figure>



Boccaccio also noted that Hyperliquid’s UX and ability to list popular tokens quickly have helped boost its popularity.&nbsp;



Hyperliquid’s core businesses are HyperCore (the order book exchange) and HyperEVM (the EVM network). Right now, HyperCore is the dominant business, with a valuation of $11.2 billion to HyperEVM’s $61 million.&nbsp;



But that “discrepancy” is warranted, Boccaccio wrote, “given that the core product is, and should be, the HyperCore, while the HyperEVM initially will likely act as a supporting chain.”



The report notes that HyperEVM could be a more profitable product later on, especially if it integrates token launchpads, SocialFI, NFT marketplaces on the chain.



Guess there’s a reason for all that HYPE.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: Unpacking crypto and the markets.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Hyperliquid’s averaged $6.4B in daily trading volume over the past 3 months: Blockworks Research

Dan Smith

Blockworks has one goal: to provide world-class information to crypto professionals.



This vision started in 2017, and we focused entirely on delivering incredible events, podcasts, newsletters and news to our community. 



Five years later, the financial institutions, hedge funds, venture firms and executives who read and listened to Blockworks began asking for more. We realized it was time to push into research and data. 



We <a href="https://blockworks.co/news/blockworks-unveils-new-research-offering">launched</a> Blockworks Research in 2022 to serve this need. As the platform developed, we realized that data was our edge, and delivering industry-leading information to crypto professionals meant delivering industry-leading data.



We’ve spent the past 10 months completely revamping our data and analytics product. This means building a robust warehouse that can handle hundreds of terabytes of data, a query engine so our analysts can build charts 10x faster, and a beautiful new frontend.



Today, we’re excited to release Analytics 2.0 to the world.&nbsp;



The upgrade provides users with more in-platform customization tools and deeper access to the underlying data, which increases the breadth of analysis that can be run.&nbsp;



Over the coming months, we will also enable customized chart and dashboard creation directly within our platform.&nbsp;



Shortly after that, we will offer access to our API, allowing users to leverage our data within their own environment to create financial models or run rich statistical analyses.&nbsp;



<h3 class="wp-block-heading">Improve the Data, Improve the Industry</h3>



We view blockchains as transparent, open systems that allow for on-demand data retrieval. Unfortunately, it is still an extremely complex process to collect and analyze that onchain data. This truth, more often than not, leads to data inaccuracies. Relying on this inaccurate data causes investors and executives to make confident yet misguided decisions on the back of false certainty.&nbsp;



Our <a href="https://www.blockworksresearch.com/">data and analytics platform</a> solves this problem.&nbsp;



We provide investors and executives with the raw data they need to make better investments and corporate decisions. Our analytics serve as the interpretation layer, abstracting away the complexity of crypto data to make it actionable. We are going deeper, questioning the status quo and creating new metrics to illuminate what is happening in our industry.



Our vision is simple: Improve the data, improve the industry.



We see a world where the inherent transparency of blockchains reduces systematic risk, creating more attractive investment opportunities and making businesses built on these new financial rails easier to value.



A world with verifiable financial tracking that reveals the true economic health of the onchain economy.



A world with real-time risk management that preemptively identifies threats to strengthen investor confidence.&nbsp;



A world with granular user monitoring that provides actionable data on behavior and trends to inspire strategic growth decisions.&nbsp;



This is the world we are building for.&nbsp;



You can sign up for our revamped <a href="http://blockworksresearch.com/">data platform</a> or visit our <a href="https://blockworks.co/analytics">public data page</a> to get a taste of our analytics.



For a deeper conversation, reach out at <a href="mailto:research@blockworks.co">research@blockworks.co</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: Unpacking crypto and the markets.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Blockworks’ Evolution into a Data Powerhouse

This is a segment from the Empire newsletter. To read full editions, <a href="https://blockworks.co/newsletter/empire" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Unlike what I’m seeing on CT, I don’t need to convince any of y’all that crypto looks good in the long term.&nbsp;



You all know this because, dang, we’ve never been in such a bullish position (stop looking at current price action, and close the tab please).



Ryan Connor of <a href="https://www.blockworksresearch.com/">Blockworks Research</a> says we’re seeing fundamentals play a role in crypto. And if that sounds familiar, it’s because <a href="https://blockworks.co/news/crypto-fundamentals-metrics-to-watch">he said a similar thing literally a month ago</a>.&nbsp;



There are a few examples of this — get ready for some alpha — but my big takeaway is that we’re starting to see some parts of crypto act like stocks. And it’s really kicking off, more so than what we discussed last month.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Who said crypto doesn’t trade on fundamentals? <a href="https://t.co/bhsSSnHAZ8">https://t.co/bhsSSnHAZ8</a>&mdash; Ryan Connor | BWR 🟪 (@_ryanrconnor) <a href="https://twitter.com/_ryanrconnor/status/1896939841411330196?ref_src=twsrc%5Etfw">March 4, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Geodnet is one such example, Connor said. His team at Blockworks Research has been “pounding the table” on it since November because “they&#8217;re building out an RTK network globally. It&#8217;s seeing real revenue. It&#8217;s seeing ARR revenue. That revenue is steadily climbing up … it is completely untethered from this self-reflective crypto capital market,” he explained.&nbsp;



Most importantly: It hasn’t moved on crypto volatility in the past few months.&nbsp;



For Connor, that’s perhaps the most important snippet because it shows that folks aren’t taking profit just because of the current market conditions and reaffirms the “fundamental story.”



Grass is another such example. It’s a “business that&#8217;s not correlated to crypto capital markets, and that thing&#8217;s up 20-40% since February 16, when this drawdown in crypto markets really started accelerating. So again, just another example of a pocket of the market that&#8217;s generating real income, uncorrelated to” the volatility we’re seeing across crypto.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">The percentage of altcoins with 90-day returns greater than <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> is reaching a historic low. This has usually been a good time to look for discounted value among altcoins, but requires tight selection and a lot of patience. <a href="https://t.co/rkbFsv5D6P">pic.twitter.com/rkbFsv5D6P</a>&mdash; Miles Deutscher (@milesdeutscher) <a href="https://twitter.com/milesdeutscher/status/1896931899156885840?ref_src=twsrc%5Etfw">March 4, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



If you’re looking for more tokens that buck the trend, then it’s all about figuring out what makes the token tick, Connor said. That’s how he and his team think about it. A lending protocol, for example, would be lending out to something like a crypto-native fund. The fund’s investments go up, it’s good for the protocol. A more negative environment makes that situation slightly trickier.&nbsp;



The thing is that crypto’s not just about the vibes anymore.&nbsp;



That’s not going to stop me from monitoring them, because I think — like retail investors in the stock market — it helps establish a sense of where we are and what people are interested in. But the reality is the market itself won’t keep reacting to vibes unless we stay focused on things like memecoins (which I’m clearly skeptical about).&nbsp;



“We have a market that is maturing. And while it might have paid to be a vibes-based trader in the past, it helps to have different skills. Now this is a market [focused on revenues and business strategy] and less so about marketing and what people are thinking,” which means it might be time to stop doomscrolling CT.&nbsp;



In this day and age, it’s all about being savvy.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: Unpacking crypto and the markets.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

altcoins

Crypto’s maturing into a ‘token pickers market:’ Analyst

Jason Yanowitz

Since launching Blockworks Research two years ago, we’ve become the leading provider of crypto intelligence, research, and data. As this happened, we learned valuable lessons about what it takes to build and scale a crypto company and protocol.



Protocols asked us to share these lessons with them. Since then, we’ve been lucky enough to work with some of the best teams in the industry designing incentives, scaling governance, improving their analytics, giving guidance on treasury management, and more.&nbsp;



Today, we’re thrilled to formalize these services with the launch of Blockworks Advisory – a comprehensive suite of services designed to hypercharge growth for crypto projects from inception to maturity.



One of our core beliefs at Blockworks is that every year, more and more value will move onchain. As this happens protocols will become the new institutions. They’ll be bigger than any software business. They’ll be bigger than any bank.



Blockworks Advisory is here to support these protocols as they scale from their infancy to an entire ecosystem with diverse stakeholders.



<h2 class="wp-block-heading">Built Different: The Blockworks Approach</h2>



Blockworks Advisory stands apart with its depth-focused, authentic, and transparent approach. Our core offering includes:



<ul class="wp-block-list">
<li>Foundation Launch Partner: Creating a comprehensive solution to coordinate project Foundation launches through personalized service</li>



<li>Go-to-Market Strategy: Leveraging Blockworks&#8217; extensive network to drive brand awareness and identify optimal distribution channels</li>



<li>Economic Design: Applying quantitative techniques to forge sustainable growth paths, from incentive design to risk parameter definition.</li>



<li>DAO Operations: Advising on structure, co-authoring proposals, and administering grant programs to allow projects to focus on product development.</li>
</ul>



<h2 class="wp-block-heading">Charting the Future of Crypto Projects</h2>



Blockworks Advisory doesn&#8217;t just study trends — it defines them:



<ul class="wp-block-list">
<li>Protocol Dashboards: Building custom data dashboards to showcase in-depth adoption metrics on dedicated landing pages</li>



<li>DAO Research Partner: Providing objective, data-driven analysis for informed community decision-making</li>



<li>Finance &amp; Treasury Management: Outsourcing Foundation or DAO finance functions and offering treasury management guidance</li>



<li>Community Engagement: Hosting community calls and driving active discussions among key stakeholders</li>
</ul>



<h2 class="wp-block-heading">What Drives Blockworks Advisory</h2>



Our beliefs are as profound as the minds that champion them:



<ol class="wp-block-list">
<li>Depth over breadth: We deliver deep insights</li>



<li>Authenticity rules: Our genuine understanding of crypto&#8217;s nuanced ecosystem sets us apart</li>



<li>Transparency builds trust: We earn trust through clear, conflict-free analysis and data</li>



<li>Experience is everything: Our user-centric approach ensures seamless interaction with complex data</li>
</ol>



Blockworks Advisory aims to redefine how crypto projects launch, grow, and thrive. By focusing on Foundations and communities, we enable projects to concentrate on core product development.



As David Rodriguez, our Head of Advisory says: “At Blockworks Advisory, we believe that every project deserves a tailored approach to navigate the complexities of the crypto landscape. Our mission is to empower teams with the insights and support they need to not just launch, but thrive in this dynamic environment. We’re here to ensure that your vision becomes a reality, enabling you to focus on innovation while we handle the intricacies of launching a decentralized protocol.&#8221;



For more information, visit blockworksresearch.com/advisory or email us at advisory@blockworks.co



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross.&nbsp;<a href="https://blockworks.co/newsletter/empire" rel="noreferrer noopener" target="_blank">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin.&nbsp;<a href="https://blockworks.co/newsletter/onthemargin" rel="noreferrer noopener" target="_blank">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the&nbsp;<a href="https://blockworks.co/newsletter/research" rel="noreferrer noopener" target="_blank">0xResearch newsletter</a>&nbsp;— market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day.&nbsp;<a href="https://blockworks.co/newsletter/lightspeed" rel="noreferrer noopener" target="_blank">Subscribe to daily Solana news</a>&nbsp;from Jack Kubinec and Jeff Albus.

advisory

Blockworks launches protocol advisory services

Ben Strack

Blockworks Research has further upgraded its platform, a move that comes nearly two years after launch in an effort to bring more tools and data to market.



Introduced in May 2022, Blockworks Research now features more asset dashboards, protocol spotlights, <a href="https://blockworks.co/news/govhub-tracking-governance">governance insights for protocols</a> — such as Uniswap, Maker and Aave — broader research coverage, and full integration with Blockworks news and podcasts.



User experience upgrades include proposal notifications and new metrics that include ETH staking yield and decentralized exchange volume. Blockworks news stories and podcasts are now also integrated into the research platform.&nbsp;



&#8220;After gathering feedback from tons of crypto investors, a common sentiment emerged: the frustration of navigating multiple tools for reliable research, data, news and analytics in crypto was real,” said Vice President of Blockworks Research Tricia Lin. “We are excited to introduce Blockworks Research 2.0, our answer to address this need.&#8221;



The enhancements mark the latest iteration of an evolving platform for a digital media company building out its offerings.&nbsp;



Founded in 2018, Blockworks maintains a podcast network, editorial brand and newsletters in addition to hosting several events and conferences.



Company co-founders Jason Yanowitz and Michael Ippolito <a href="https://blockworks.co/news/blockworks-unveils-new-research-offering">introduced Blockworks Research in May 2022</a> at its inaugural Permissionless event in Palm Beach.&nbsp;



The research division then created Blockworks Analytics last September.&nbsp;&nbsp;



Read more: <a href="https://blockworks.co/news/blockworks-research-analytics-launch">Blockworks Research debuts analytics platform for on-chain metrics</a>



The research platform upgrades announcement came during the first day of Blockworks’ Digital Asset Summit (DAS) in London. It follows bitcoin reaching several all-time highs already this month, and <a href="https://blockworks.co/news/ethereum-dencun-upgrade-mainnet">Ethereum’s Dencun upgrade</a>.



&#8220;Blockworks Research is built to help investors outperform the market, delivering research and analytics that gives them the ability to stay ahead in fast-moving markets,” Yanowitz said.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: Unpacking crypto and the markets.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Blockworks releases research platform enhancements on first day of DAS

Blockworks Research is thrilled to announce the launch of our enhanced crypto information platform, setting a new standard in the world of crypto investment research. With a focus on seamless user experience, full integration with Blockworks editorial and podcasts, and broader research coverage, our revamped platform aims to empower investors with unparalleled access to comprehensive data and cutting-edge tools.



At the core of this launch is our commitment to solving the challenge of fragmented information. By leveraging feedback from a diverse range of investors, we have reimagined our platform to meet the evolving needs of the market, enabling users to make informed decisions swiftly and confidently.



Our solution encompasses a suite of primary features designed to provide in-depth research analysis, flashnotes, seamless integration with Blockworks&#8217; editorial content on crypto, and advanced analytics including asset dashboards, protocol spotlights, and governance insights for prominent protocols such as Uniswap, Maker, Aave, and much more.



In addition to these primary features, Blockworks Research offers a range of secondary functionalities aimed at enhancing user experience. These include proposal notifications, improved navigation and organization on the homepage, searchability enhancements, new metrics like ETH staking yield and DEX volume, as well as a glossary and customizable light/dark mode options.



With this launch, Blockworks Research consolidates hundreds of features into one subscription model, providing investors with a comprehensive toolkit for navigating the complexities of the crypto market. Our platform offers a seamless blend of sophistication, usability, and data analysis capabilities, redefining how investors engage with crypto assets.



For more information on the new Blockworks Research platform and subscription details, visit our website or contact our team directly at researchsupport@blockworks.co.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: Unpacking crypto and the markets.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Blockworks Research unveils new all-encompassing digital asset information platform

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1272" height="890" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-10.18.49.png?w=1024&amp;h=1024" alt="" class="wp-image-67935" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-10.18.49.png?w=1272 1272w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-10.18.49.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-10.18.49.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-10.18.49.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-10.18.49.png?w=367 367w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-10.18.49.png?w=373 373w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-10.18.49.png?w=313 313w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-10.18.49.png?w=80 80w" sizes="auto, (max-width: 1272px) 100vw, 1272px" /><figcaption class="wp-element-caption">In 1983, Apple published a print ad for Apple Business Graphics, a software package that gave Apple II and Apple III computers “the power to convert rows and rows of numbers to — or pounds of printout — into one simple, colorful, comprehensible illustration.”</figcaption></figure>



<h2 class="wp-block-heading">For the dreamers, the makers, the pioneers…and the rebels</h2>



Today signals a new dawn for on-chain crypto analytics.



Since the launch of Blockworks nearly six years ago, we&#8217;ve anticipated the meteoric rise of crypto as a significant asset class. As the industry has expanded, so has the demand for more sophisticated information.



During our first five years, our focus was crystal clear: deliver unparalleled content. From tentpole live events — <a href="https://blockworks.co/event/permissionless-2023">Permissionless</a> and the <a href="https://blockworks.co/event/digital-asset-summit-2024-london">Digital Asset Summit</a> — to in-depth podcasts, informative newsletters, and professional journalism, our journey is one of constant elevation.



We have now journeyed to the edge of possibility to reimagine research, data and analytics.



<h2 class="wp-block-heading">Built different.™</h2>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1010" height="736" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-11.21.12-AM.png" alt="" class="wp-image-67959" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-11.21.12-AM.png?w=1010 1010w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-11.21.12-AM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-11.21.12-AM.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-11.21.12-AM.png?w=353 353w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-11.21.12-AM.png?w=358 358w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-11.21.12-AM.png?w=301 301w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/Screenshot-2023-09-13-at-11.21.12-AM.png?w=80 80w" sizes="auto, (max-width: 1010px) 100vw, 1010px" /><figcaption class="wp-element-caption">The &#8220;Think Different&#8221; campaign from Apple celebrated non-conformity and creativity by honoring iconic figures who changed the world by thinking outside the box.</figcaption></figure>



<h2 class="wp-block-heading">Blockworks gets it</h2>



Through dialogue with crypto professionals, it&#8217;s clear: Today’s information platforms have major challenges. Some aren’t trustworthy, some are a mile wide and an inch deep, some have bad user interfaces, and others are simply too expensive.&nbsp;



The Blockworks approach is simple:



1. Depth over breadth: Many platforms stretch wide and try to capture everything. The result? They scratch the surface and miss the essence.



2. Authenticity rules: Many platforms lack a genuine understanding of crypto&#8217;s nuanced ecosystem, its culture and its technology.



3. Transparency builds trust: The landscape is clouded with undisclosed sponsorships, conflicts of interest and unchecked data. Trust isn&#8217;t a given — it&#8217;s earned.



4. Experience is everything: It&#8217;s not just about data. It&#8217;s about how you interact with it. Right now, navigating these platforms can be cumbersome, driving users to basic tools.



<h2 class="wp-block-heading">The heart and genius driving Blockworks</h2>



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image3-1.png" alt="" class="wp-image-67934" style="width:509px;height:547px" width="509" height="547" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image3-1.png?w=776 776w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image3-1.png?w=279 279w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image3-1.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image3-1.png?w=239 239w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image3-1.png?w=243 243w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image3-1.png?w=204 204w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image3-1.png?w=74 74w" sizes="auto, (max-width: 509px) 100vw, 509px" /><figcaption class="wp-element-caption">Apple marketed the PowerBook as a revolutionary portable computer, blending design elegance with robust performance by highlighting the unique ways users utilized their PowerBooks.</figcaption></figure>



<h2 class="wp-block-heading">At Blockworks, people are everything</h2>



Our beliefs are as profound as the minds that champion them:



1. Research: We don&#8217;t just study trends, we define them. Nor are our insights just data — they&#8217;re glimpses into the future.



2. Governance: With GovHub, we don&#8217;t just track protocol proposals. We empower users with the clarity and conviction to make informed governance choices.



3. On-chain analytics: It&#8217;s not just about numbers or layers. It&#8217;s about delivering deep insight into the very fabric of layer-1s and layer-2s.



Guided by these pillars, we see a future where every executive, investor, builder and crypto-lover can leverage Blockworks Research to make intelligent decisions.



<h2 class="wp-block-heading">Charting the future</h2>



In a world where platforms often demand premium prices for what they offer, Blockworks takes a different approach. Smarter Crypto Intelligence costs just $208/month.



Our vision is to make 2023 a defining moment for on-chain analytics. Evoking the words of Wayne Gretzky, “At Blockworks, we don&#8217;t merely go where the puck is. We go where it’s going to be.”



Blockworks Research is more than just a platform. It’s a smarter approach to crypto intelligence.



Subscribe today: <a href="https://www.blockworksresearch.com/">Blockworksresearch.com</a> 



Jason Yanowitz



Blockworks co-founder



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: Unpacking crypto and the markets.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Sea of data or data you can see?

Michael McSweeney

Blockworks’ research wing has launched a new on-chain analytics platform.&nbsp;



The platform’s aim is to provide data and analysis for an increasingly complex crypto ecosystem defined by its multiple layers. These include the core, layer-1 networks, followed by the layer-2s and 3s that comprise the world of open or decentralized finance.



With that complexity comes a demand for strong data. A 2021 Fidelity Digital Assets survey <a href="https://blockworks.co/news/its-not-about-crypto-volatility-institutions-need-better-data">found</a> that widespread concerns among institutions about volatility grew, in part, from a dearth of market intelligence.



“We realized there was a missing gap of affordable crypto products that provided on-chain data, detailed financials, profitability analyses, and protocol comparisons in one solution, which led us to create Blockworks Analytics,” said Tricia Lin, vice president of research for Blockworks.&nbsp;



The platform includes support for layer-1s like Bitcoin, Ethereum and Solana, as well as layer-2 protocols like Arbitrum. On-chain data streams include staking analytics and blockspace profitability, among others, with daily, weekly and monthly updates across an array of sources.&nbsp;



Blockworks Analytics was unveiled during the <a href="https://blockworks.co/event/permissionless-2023">Permissionless</a> crypto conference today in Austin, Texas.&nbsp;



“Protocols are simply on-chain businesses,” Blockworks co-founder Jason Yanowitz said in a statement. “As the industry has evolved, so has the need for sophisticated, trustworthy, and user-friendly data platforms that help investors make sense of these businesses. 



The analytics platform builds on the work of <a href="https://www.blockworksresearch.com/">Blockworks Research</a>, launched last year. In May, <a href="https://blockworks.co/news/govhub-tracking-governance">Blockworks Research launched GovHub</a>, a tool for tracking governance proposals across Web3 communities.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: Unpacking crypto and the markets.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Blockworks Research debuts analytics platform for on-chain metrics

Darren Kleine

In a spicy take on Lido’s liquid staking dominance, David Rodriguez says Ethereum thought leaders aren’t being realistic about the problem and are in fact, “coping.”



The <a href="https://www.blockworksresearch.com/">Blockworks Research</a> analyst doesn’t hold back in his critique of some of the community’s suggestions to address the situation.&nbsp;



Rodriguez explains that some leaders are suggesting <a href="https://blockworks.co/tag/lido">Lido</a> should take one for the team, voluntarily limiting itself to 22% staking dominance — well below its current position at around 32% of the market.&nbsp;



Competing liquid staking providers are valiantly promising that they would, of course, do the same, Rodriguez says, if only they could first grow more than ten times in size to even face the same dilemma.



On the 0xResearch podcast (<a href="https://open.spotify.com/episode/2XjjYYGHUFSIDyhehzuF3C?si=ky49y0koRtiCR014IAwPfg">Spotify</a>/<a href="https://podcasts.apple.com/us/podcast/catalyst-amm-cross-chain-units-of-liquidity-and/id1651683074?i=1000626987882">Apple</a>), Rodriguez argues that the suggested tactics to limit Lido’s dominance are “short-sighted.”&nbsp;



“The overall argument,” Rodriguez says, “is that if Lido has more than 33% market dominance, that hurts Ethereum&#8217;s <a href="https://blockworks.co/news/building-credible-neutrality-mev">credible neutrality</a>. Lido essentially becomes a governance wrapper over <a href="https://blockworks.co/tag/ethereum">Ethereum</a>, which specifically was never meant to have <a href="https://blockworks.co/news/jokerace-founder-governance">on-chain governance</a>.”



“If Ethereum, as a community, decides that Lido is too powerful [and] decides to enshrine liquid staking into the protocol, or decides to straight-up fork Lido,” he says, “that harms the property rights of developers and users of Ethereum.”



Looking back at earlier days of <a href="https://blockworks.co/news/liquid-staking-ethereum-centralization">liquid staking</a> on Ethereum, Rodriguez says, “we easily could be in a world today where centralized exchanges are the majority of the stakers of Ethereum.”



The reason centralized exchanges are not the “monopoly powers” over Ethereum, Rodriguez says, “is specifically because of Lido.” He adds that Lido is <a href="https://blockworks.co/news/lido-v2-whats-new">implementing a staking router</a> to help “diversify” staking to smaller validators.



Rodriguez says Lido is implementing “dual-governance” in the future, whereby staked ETH holders will have “veto rights” in the event of any malicious act by Lido governance.&nbsp;



<h2 class="wp-block-heading">Cause for concern is over-blown</h2>



Lido is demonstrating through these actions, he says, that it is trying to become “incentive-aligned with Ethereum long-term.” In fact, no protocol other than <a href="https://blockworks.co/news/uniswap-class-action-dismissed">Uniswap</a>, perhaps, is more aligned with Ethereum, argues Rodriguez.



“We&#8217;re going to ultimately have a winner-take-most or a winner-take-all scenario in an open source world,” he says, “where network and liquidity effects really drive brand and overall market dominance in the future.”



“The cause for concern is over-blown,” he says.



<iframe loading="lazy" frameborder="0" height="200" scrolling="no" src="https://playlist.megaphone.fm/?e=BWG7734286993" width="100%"></iframe>







Self-limiting to a maximum market dominance of 22% “loses nuance,” says Blockworks research analyst, Ryan West. Solving the problem requires addressing the “mechanism design from a core protocols perspective,” West says.&nbsp;



“If the only solution you have to this is asking and begging the protocols themselves to self-limit,” he says, “it&#8217;s a problem with the underlying design.”



West explains that limiting staking dominance to 22% or less would theoretically make it difficult to take over the network as more than three entities would have to collude to exceed 66% of the entire stake. “I believe that&#8217;s the reasoning behind it,” he says, “but at the same time, when you look at the design of these LST protocols, it&#8217;s not like it&#8217;s one entity staking this <a href="https://blockworks.co/price/eth">ETH</a>.”



“There are decentralized solutions and Lido is obviously <a href="https://blockworks.co/news/lido-upgrade-almost-live">working towards those</a>,” he says.&nbsp;



“You should look less so at the number of ETH staked by these operators and instead look at the underlying design,” West says. “As long as it&#8217;s aligned with Ethereum, then I think that&#8217;s good enough for me.”



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: Unpacking crypto and the markets.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

0xResearch

Ethereum thought leaders are ‘coping’ with Lido dominance, says Blockworks Research analyst

Anyone who’s ever played a loot-based game like Diablo has heard of the old trick “duping.” An unscrupulous player places something on the ground that they want to duplicate and then tricks the inventory system into forgetting about the item when it’s picked back up.



Although it’s generally frowned upon as cheating, the tactic is relatively inconsequential, considering it’s a video game, and the inventory from which it is “stolen” has no monetary value. But in the world of cryptocurrency, where real value is traded, exploits of a similar nature can have a much more serious impact.&nbsp;



Such was the case with the recent attack on Curve’s <a href="https://blockworks.co/tag/defi">DeFi</a> ecosystem, which saw millions of dollars in tokens swiped from pools. The “<a href="https://blockworks.co/news/the-nine-largest-crypto-hacks-in-2022">re-entrancy attack</a>” took advantage of vulnerabilities due to a <a href="https://blockworks.co/news/curve-suffers-exploit">bug in the compiler for Vyper</a>, the programming language that Curve (<a href="https://blockworks.co/price/crv">CRV</a>) uses for a number of smart contracts.



A re-entrancy attack doesn’t look quite the same as the old video game duping exploit, but it’s not far off. On a recent Empire podcast (<a href="https://open.spotify.com/episode/646koFXvykhYnPmsx9D4Bn?si=36ff54d3e7b344a2">Spotify</a>/<a href="https://podcasts.apple.com/us/podcast/empire/id1554930038?i=1000623432839">Apple</a>), host Jason Yanowitz offers an analogy. 



“Suppose that there&#8217;s this mischievous person,” Yanowitz says, who walks into a bank. To exploit the system, the scammer requests a withdrawal and promptly receives their money, but before the teller can record it in a ledger, the culprit distracts them.



While the teller is distracted, the cheat again asks for their withdrawal, at which point the teller hands over money in addition to the original funds. The process repeats with the astoundingly inattentive teller, allowing the thief to withdraw far more money than is actually in their account.&nbsp;



<a href="https://app.blockworksresearch.com/">Blockworks Research</a> analyst <a href="https://twitter.com/purplepill3m">Ren Yu Kong</a> explains Curve was the “end target” of the hack and Vyper, like the confused teller, allowed it to happen.&nbsp;



<h2 class="wp-block-heading">The blame game</h2>



Blockworks data editor Andrew Thurman adds that the person who approved the commit, allowing for the exploit to be executed, appears to have been a Curve developer. “It&#8217;s really tough to say it&#8217;s one team and not another team who should take the blame,” he says.



Read more: <a href="https://blockworks.co/news/curve-egorov-exit-defi-positions">Curve’s Egorov turns to notable counterparties to bail out his DeFi positions</a>



“These things are structures that are built on top of each other,” Thurman says. “You just assume that somebody smarter than you has done the legwork to make sure that everything&#8217;s good with the compiler.”



“Who is really at fault at the end of the day is, I think, a much more complicated question,” he says.



Yanowitz wonders if the problem extends to other protocols, considering many use the same smart contract language and compilers. Yu Kong takes things a step further. 



<iframe loading="lazy" frameborder="0" height="200" scrolling="no" src="https://playlist.megaphone.fm/?e=BWG8902522688" width="100%"></iframe>







“We all know Solidity is probably the most used <a href="https://blockworks.co/tag/smart-contracts">smart contract</a> programming language within the <a href="https://blockworks.co/tag/evm">EVM</a> ecosystem.” In a recent audit, Yu Kong notes that several bugs were discovered in Solidity’s optional compiler optimization module. “Chances are that developers check the smart contract optimization box because they trust Solidity,” Yu Kong says.



“But over the years, starting all the way from late 2018, there&#8217;s been a <a href="https://blockworks.co/newsletter/issue/32251764">significant number of high-severity bugs</a> in that Solidity compiler,” he says. “So for all we know, there&#8217;s one super big bug in the Solidity optimizer.”



Even the best Big Tech companies in the world fall victim to zero-day <a href="https://blockworks.co/tag/exploit">exploits</a> from time to time, Yu Kong says. “It&#8217;s really hard to write perfect code.”&nbsp;



While Big Tech companies usually patch vulnerabilities quickly, the fact that a zero-day exploit can exist in such highly-developed software engineering environments is “pretty scary,” Yu Kong says.&nbsp;



“The same, probably, is the case for any smart contract programming language.”



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: Unpacking crypto and the markets.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Could there be a ‘super-big bug’ at the root of DeFi? It’s possible, says Blockworks Research

Following the FTX meltdown, one of crypto’s hardest-hit sectors was likely DeFi on Solana, Mike Ippolito says.



But it might be time for a comeback.&nbsp;



Members of the <a href="https://app.blockworksresearch.com/">Blockworks Research</a> team spoke to the host of the Bell Curve podcast (<a href="https://open.spotify.com/episode/1RtwyHqZdZ9uwxA6K7OuCF?si=uXcw9UVCSLKvW3pF4rr9ow">Spotify</a>/<a href="https://podcasts.apple.com/us/podcast/whats-the-future-for-airdrops-roundup/id1641356619?i=1000619918543">Apple</a>) about the future of DeFi on what’s left of Solana’s ecosystem.



Senior Research Analyst <a href="https://twitter.com/smyyguy">Dan Smith</a> describes the current state of <a href="https://blockworks.co/tag/defi">DeFi</a> on <a href="https://blockworks.co/tag/solana">Solana</a> as a “smoldering wreckage,” but is optimistic about its recovery. “It&#8217;s primed for a renaissance,” he says.



“There are some great founders that are building in that space,” Ippolito agrees.



Smith says the idea of a <a href="https://blockworks.co/news/what-is-solana-everything-you-need-to-know-about-the-ethereum-rival">high throughput blockchain</a> makes sense, especially considering the myriad challenges <a href="https://blockworks.co/tag/ethereum">Ethereum</a> faces — like <a href="https://blockworks.co/news/shared-sequencers-decentralization">sequencer decentralization</a> and <a href="https://blockworks.co/news/dont-overuse-social-consensus-vitalik-warns">flaws in social consensus mechanisms</a> —&nbsp; with its modular design.



A “single-shard” solution solves many of the problems Ethereum is struggling against, Smith says. “Let&#8217;s just juice the base layer until we can get the throughput to where it needs to be.”



“There&#8217;s definitely gonna’ be problems we run into there,” he says. But the fact that someone is “going down the other side of the path” appeals to Smith.&nbsp;



“It&#8217;s not like it&#8217;s all sunshine and roses <a href="https://blockworks.co/news/layer-2-secured-by-ethereum">on the modular side</a>.”



Smith points out many teams are building DeFi solutions on Solana. Among others, he mentions <a href="https://blockworks.co/news/solana-spam-problem">Jito</a>, an “<a href="https://blockworks.co/tag/mev">MEV</a>-focused <a href="https://blockworks.co/tag/liquid-staking">liquid staking</a> solution” and the lending protocol, <a href="https://blockworks.co/news/solana-protocol-gets-3m-in-seed-funding-with-aim-to-bridge-defi-margin-trading">marginfi</a>. “There&#8217;s still some interesting tech there, and I&#8217;m interested in what&#8217;s to come.”



With a mildly sardonic jab, Smith suggests it might be time to “get in the trenches with you and the 10 other people checking out Solana Defi.”



<h2 class="wp-block-heading">Primed for an explosion</h2>



Blockworks Research Analyst <a href="https://twitter.com/WestieCapital">Ryan West</a> finds a number of technical differentiators at play, too. “Synchronous composability within the same block” is a technical advantage of Solana’s architecture, West says, adding that he thinks “it can be a superpower.”



“With Solana, you have the ability for synchronous composability within 400 millisecond block times,” he says. “You can imagine, once you stack these Lego blocks on top of each other, that you would have very seamless UX experiences across many different apps.”



West likewise finds a broad range of quality teams building DeFi tools for the platform. “Once you understand how the pieces fit together from one project to another, you see like, yeah, the DeFi ecosystem is coming back to life.”



<iframe loading="lazy" frameborder="0" height="200" scrolling="no" src="https://playlist.megaphone.fm/?e=BWG8770973209" width="100%"></iframe>







“As soon as we start to see more capital, more users flow back into the ecosystem,” he says, “it&#8217;s definitely primed for an explosion.”



Ippolito notes the current “cold start problem” that Solana faces is “twofold.”



“One, you don&#8217;t have a robust DeFi ecosystem yet.”



“You did,” he says, but <a href="https://blockworks.co/news/ftx-this-week">an FTX “18-wheeler”</a> drove right through it.



“And then two is that the adoption for liquid staking is just so much lower.”



These two “fundamental building blocks” have been unable to kickstart a “virtuous cycle” that would otherwise kick off a Solana DeFi summer, he says.



“This is a solvable problem,” Ippolito says. “Once this gets kicked off, it could be gangbusters.”



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: Unpacking crypto and the markets.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Bell Curve

The ‘smoldering wreckage’ of Solana DeFi might be due for a rebirth, Blockworks Research says

David Canellis

<div id="highlights-block_62bc90bc0ca9e" class="highlights">
 <ul>
 <li>The Altcoin Season Index calculates whether markets are favoring bitcoins or other cryptocurrencies</li>
 <li>Digital asset investors have gravitated toward bitcoin all year as prices have tumbled</li>
 </ul>
 
</div>



Just 15 of the top 50 cryptocurrencies by market value have outperformed bitcoin (BTC) over the past 90 days — indicating we’re still far from the much-loved “altcoin season.”



Blockchain Center’s Altcoin Season Index gauges the temperature of digital asset markets by separating sentiment into two heady modes: bitcoin and altcoin.



An “altcoin” is considered a derogatory label for much of the cryptocurrency sector, subtly denigrating anything that isn’t the original digital asset.&nbsp;



Still, the index serves as an effective tool for mapping where investors’ heads are at when it comes to diversifying away from the blue chips.



How it works: Altcoin season has arrived when more than 75% of the top 50 cryptocurrencies (38 or more) have outperformed BTC over the past 90 days. The index filters out stablecoins and asset-backed tokens such as wrapped bitcoin and Lido staked ether.



On the flip side, we’re firmly in bitcoin season if fewer than 25% of the top 50 digital assets have outperformed BTC.



<figure class="wp-block-image"><img decoding="async" src="https://lh5.googleusercontent.com/Fa4aUG7T27wxZxguudI_QjNq5IDt1lhF9AhEm-XXwD2INbHYi1F8y74xbwEX_qxIKJp7gNGXmfkJK7cypFnAvsWaRTyrb-5f6i_EKv_tU6lkwdtFmtb-W62Q4bonEEnnY52nElV50cGt0lZ3eS4" alt=""/><figcaption>Altcoin Season Index | Source: <a href="https://www.blockchaincenter.net/altcoin-season-index/" target="_blank" rel="noreferrer noopener">Blockchaincenter.net</a></figcaption></figure>



The most recent prolonged altcoin season occurred in 2021, between late March and the last week of June. At the time, BTC was hovering around $60,000 before collapsing 40%, to $34,000.



But crypto markets trended heavily toward bitcoin season throughout July 2021, and formally entered BTC mode for nearly two weeks in August of that year.



Blockchain Center’s index bounced between the two seasons for six months — except for two days in January, when crypto markets briefly propelled altcoin returns beyond bitcoin’s.



<h3 class="wp-block-heading">Bitcoin miner capitulation could summon altcoin season</h3>



The index indicates we’re not currently in the season of the big orange coin. Still, crypto markets have enjoyed more than 70 days of bitcoin season since the start of February — about half the total number of days until today.



Right now, we’re far away from altcoin season, with just 31% of the top 50 cryptocurrencies outperforming BTC over the past 90 days. But that could change quickly should bitcoin miners continue to feel the pressure from low prices and macroeconomic factors driving up electricity costs.



“If miners continue to sell their BTC rewards in order to fund operations then it could definitely swing back to an altcoin season,” said Ryan Swanson, Blockworks Research analyst.



Bearing in mind this doesn’t mean altcoins go up — they can outperform bitcoin in a downtrend too — Swanson explained that altcoin season has historically followed bitcoin season, after a rise in the price of BTC results in more capital moving to riskier assets.



“However, the trend seems to be changing in the near term, given the specific pressures on miners and the emergence of ‘altcoins’ that have their own market cycles, such as layer-1 tokens ether and solana, as well as [decentralized finance] offerings like aave and MakerDAO [MKR],” Swanson said.



Check out Blockworks Research’s latest <a href="https://www.blockworksresearch.com/research/bitcoin-state-of-min-ing/" target="_blank" rel="noreferrer noopener">State of Bitcoin Mining report</a> here.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: Unpacking crypto and the markets.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Bitcoin Miners May Trigger Altcoin Season – But We’re Not There Yet

<div id="highlights-block_6285486c715ef" class="highlights">
 <ul>
 <li>Blockworks Research will first focus on DeFi and seeks to expand its coverage to other sectors</li>
 <li>Web application’s offerings to include project and tokenomics analysis, daily briefs with market updates, and protocol and project models</li>
 </ul>
 
</div>



Blockworks has launched a research offering designed for a range of investors and industry watchers seeking to learn more about DeFi and other crypto sectors.&nbsp;&nbsp;



The media company’s co-founders, Jason Yanowitz and Michael Ippolito, unveiled <a href="https://www.blockworksresearch.com/" target="_blank" rel="noreferrer noopener">the new web application</a> Wednesday during the Permissionless event in Palm Beach, which Blockworks is co-hosting.



Founded in 2018, Blockworks has spent the past few years building out its events and conferences, as well as its podcast network, editorial brand and newsletter.



“We’ve been building this huge community of investors who are investing into crypto with this core thesis that crypto will eventually become one of the largest asset classes in the world,” Yanowitz said. “Now, it’s time to go deeper.”&nbsp;



Blockworks Research will focus on DeFi (decentralized finance) and seeks to expand its coverage to other sectors. The company will publish research on segments such as layer-1s, layer-2s, DAOs, gaming and NFTs — starting at the product and protocol level.



The company has a 10-person research team and plans to scale the unit over time, Yanowitz said.



The offering was designed for crypto executives seeking to keep up with industry development, as well as builders, investors and retail traders.



In addition to data, Blockworks Research will offer project and tokenomics analysis, daily briefs with market updates, protocol and project models, corporate access calls, governance updates and access to analysts.&nbsp;



The launch comes after the crash of Terra’s algorithmic stablecoin, UST, and the blockchain’s other native token, LUNA. Though the timing wasn’t planned, Ippolito said, the recent events are a good reminder of the need for better data and analysis.



“There’s definitely a lot of…following people and not doing their own research,” he said. “So one of the things we feel we can give back to the community is providing good primary research, and hopefully that can advance the space.”



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/daily">Blockworks Daily</a>: Unpacking crypto and the markets.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>