A groundbreaking report from Singapore-based Tiger Research reveals a sobering reality: only 1% of Web3 projects generate any revenue.
A groundbreaking report from Singapore-based Tiger Research delivers a sobering reality check to the blockchain industry in early 2025, revealing that 99% of Web3 projects fail to generate even one dollar in revenue. This comprehensive analysis, drawing from multiple data sources including Token Terminal and on-chain analytics, exposes what researchers term a ‘structural flaw’ in the current Web3 ecosystem.
Tiger Research’s report, titled “How Do 99% of Unprofitable Web3 Projects Survive?”, presents data showing only approximately 200 projects generated at least $0.10 in revenue over the last 30 days. Researchers describe the overwhelming majority as existing in a ‘zombie state’—technically active but fundamentally non-viable, consuming investor capital and token reserves rather than creating genuine economic value.
| Expense Category | Typical Monthly Cost | Funding Source |
|---|---|---|
| Team Compensation | $50,000-$200,000 | Token Treasury Sales |
| Exchange Listings | $10,000-$100,000+ | Investor Funds |
| Marketing & Events | $20,000-$150,000 | Token Sales & Grants |
| Development & Audits | $30,000-$100,000 | Venture Capital Rounds |
Tiger Research attributes the revenue crisis to a ‘deformed cycle’ characterized by:
This creates a ‘slow-motion liquidation’ where projects convert token reserves into fiat to sustain operations until reserves are depleted.
Q1: What percentage of Web3 projects generate revenue according to Tiger Research?
A1: Only about 1% of Web3 projects generate any revenue, with approximately 200 projects earning at least $0.10 in the last 30 days according to the report’s analysis of Token Terminal data.
Q2: How do non-revenue generating Web3 projects continue operating?
A2: These ‘zombie projects’ survive by spending token treasury reserves and investor capital on operational expenses including team compensation, marketing, exchange listings, and development costs.
Q3: What are the main structural flaws identified in the report?
A3: Tiger Research identifies three key flaws: token-first economics prioritizing token creation over service delivery, misaligned incentives allowing founders to profit despite project failure, and speculative funding based on narrative rather than fundamentals.
Q4: How does this Web3 revenue crisis compare to previous technology bubbles?
A4: While similar to dot-com era challenges, Web3 projects face unique complexities including tokenomics design, regulatory uncertainty, and continuous access to funding through token markets rather than traditional equity rounds alone.
Q5: What solutions does the report suggest for improving Web3 project viability?
A5: Recommendations include developing clearer revenue pathways before token creation, adopting more conservative valuation methodologies, focusing on user adoption metrics, and creating sustainable tokenomics that align long-term incentives between all stakeholders.
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