Beyond short-term speculation, what are some sustainable and profitable projects worth paying attention to?

Original title: Crypto Projects That Actually Make Money - Tether, Helium, GEODNET and more

Original author: Darshan Gandhi, Blockcrunch VIP

Original translation: TechFlow

Introduction

For years, many Web3 startups have faced challenges in scaling and maintaining a stable user base. Despite the initial enthusiasm for decentralization, the core issue remains building sustainable, long-term business models in highly competitive fields such as gaming, entertainment, social media, and decentralized finance (DeFi).

Understanding basic economics - such as the relationship between low market capitalization and high fully diluted value (FDV), the importance of market capitalization will become increasingly prominent.

Unfortunately, many projects still prioritize short-term token hype over sustainable growth. After the peak of the cycle in 2021, many startups have failed to even come close to their previous all-time highs (ATHs), let alone break through them (among the top tokens, only $BTC and $BNB have done this), and only a few projects have been able to survive the 2017-2018 cycle.

A major problem in past Web3 cycles has been the lack of a robust business model. While software development cycles typically take 5-7 years to mature, projects like Ethereum are now only 8 years in, and projects like Solana are not even 5 years in. This process is very difficult. As a result, many projects have fallen into the trap of relying on token hype, which can bring short-term excitement but does not actually provide strong long-term value beyond governance.

The imbalance between speculation around tokens and their actual value accumulation and utility remains a major gap in the current ecosystem.

I believe that the true potential of Web3 lies in its integration with real-world industries such as energy, artificial intelligence (AI), Internet of Things (IoT), and supply chain. By focusing on building these applications, Web3 can finally deliver on its promise of ownership, transparency, and broader social impact - moving beyond speculation to creating lasting value.

What's Changing Currently?

There is a clear trend towards creating tokens that are tied to real business models and real revenue. Projects should no longer rely on hype and narrative positioning to boost token prices; instead, the focus should be on providing real value - giving value back to tokens through voting rights, service access, or other utility mechanisms that promote long-term user engagement, such as burning and staking.

Both investors and users are now prioritizing projects that provide sustainable benefits. Concepts such as staking, token burning, and user rewards are helping these projects gain strength and ensure their growth. For example, Uniswap recently decided to reward its users for trading and providing liquidity.

This shift portends a future where tokens are not just tools for secondary market transactions, but become an essential part of the project.

What sectors are performing well?

Now, let’s really understand which sectors or ecosystems are performing well, generating sustained cash flow and being actually used by users.

While many projects are still in development or just launched, most are moving towards identifying and illustrating important business metrics, such as revenue, profit, and user base, rather than just focusing on volume and number of transactions.

Here are some of the industries that are performing well and are considered cash-rich, which are less speculative, but more faced with launch and distribution challenges in the initial stages. Once resolved, these industries will become cash cow businesses.

DePIN

· This is one of the hottest areas recently, with attention turning to it from areas such as artificial intelligence (AI) and gaming, and some projects have performed well due to actual usage and metrics data brought to this field, with Helium being the leader.

· Projects like Helium, a decentralized wireless network, demonstrate the power of real-world utility. Helium’s HNT token is earned by users who set up hotspots to provide wireless coverage, and its value is derived from the use of Internet of Things (IoT) devices, rather than speculation.

· There are also projects like GEOD and Hivemapper, which crowdsource physical data such as location and dashcam video, which can be turned into currency.

· All of these projects perform well at a revenue level and are able to generate good cash flow, which can be converted into growth in the value of the token.

Social Platforms

· Web3 social is full of fun and excitement for everyone. Consumer applications are one of the main ways that technology can really reach millions of users around the world. However, consumer cryptocurrencies have faced difficulties getting off the ground for a long time.

· Recently, the Alliance and other companies have strongly promoted this idea, and blockchains like Solana and Base have become more and more consumer-friendly, encouraging users to develop on them.

· Applications like Farcaster, Lens Protocol, and Fantasy Top are actually working to change people's views and attitudes towards consumer cryptocurrencies. Some of these applications have been able to generate some meaningful revenue and user usage data.

· However, since the user base is still very small, it is still too early compared to the wider Web2 world, but it is a good start.

Starting Platforms

· In the initial stages of project launch, the biggest challenge is often faced - they lack the most important things: relevance and distribution channels.

· Launchpads are a real game changer here, they provide a platform and an ecosystem of users, investors, and supporters for these projects.

· Launchpads like Pump Fun and Multiplier have been able to generate millions in revenue in a short period of time, benefiting from the popularity and acceptance of memecoins as a category.

· While I personally believe that this is not a sustainable model in the long run as it hurts the space more than it creates value, it is still useful to understand the different verticals that are performing well and take inspiration from them to build longer-term things in other areas.

DeFi Products

DeFi remains a durable space - and one of the only categories that can consistently bring in significant revenue in Web3, with leaders like Uniswap, Aave, Maker, and Curve contributing huge revenues.

I believe these are "boring" but sustainable businesses that will exist for a long time. It will be interesting to see if applications can be built on the basic principles of DeFi and combined with other areas (such as prediction markets, games) to explore whether new markets or perspectives can be opened up.

Web3 vs Web2 Model

The core difference between Web3 and Web2 companies is how they generate revenue and operate. While Web2 relies on centralized models like subscriptions, advertising, and enterprise sales, Web3 leverages decentralized models like token economics, transaction fees, staking, and DeFi yields to create value for the platform and its users.

Web2 captures value through:

· Control over user data

· Monetize premium content

· Provide platform services

Web3 hands control to the community through:

· Token ownership

· Decentralized Autonomous Organizations (DAOs) and governance

· Voting and participation incentives

While this decentralization opens up new opportunities, it also brings complex user experiences, regulatory challenges, and scalability issues, with roadblocks such as blockchain congestion and high transaction fees.

Web3 startups are launching products quickly through the use of smart contracts, but face the following challenges:

· Lack of easy user onboarding

· Limited user retention mechanisms

· Product utility exceeds speculative value

To achieve long-term success, the focus must shift to building sustainable revenue models that translate into real token utility, rather than relying on hype.

Here are a few different types of models and their applications in various fields:

Token-based models

· The token drives the operation of the platform and often assumes a governance role.

· As the platform grows, the value of the token also increases through burning mechanisms, etc.

Example: MakerDAO destroys MKR tokens when debt is repaid, thereby reducing supply and increasing value over time.

Subscription Models

· Web3 platforms, like Audius, offer premium features or content for a recurring fee, cutting out intermediaries.

· Artists and creators profit directly from their audience, just like in traditional Web2 subscriptions.

Platform Fees

· Platforms like Zora earn revenue by taking a small percentage of each transaction.

· User activity directly drives revenue growth.

Marketplaces

· Platforms like Blur, OpenSea, and Rarible generate revenue by taking a percentage of each NFT/asset sale.

· As trading activity grows, so does the platform’s revenue, directly linking profitability to user engagement.

DePIN Network

· Projects in this space reward users for contributing real-world resources, such as bandwidth, wireless coverage, or location information.

· Helium allows users to earn tokens by providing wireless hotspots that support IoT devices.

Decentralized Exchanges (DeXs)

· Decentralized Finance (DeFi) platforms generate revenue by charging fees for services such as token swaps or lending.

Decentralized Exchanges (DeXs)

· Decentralized Finance (DeFi) platforms generate revenue by charging fees for services such as token swaps or lending.

Decentralized Exchanges (DeXs)

· For example, Uniswap shares swap fees with liquidity providers, ensuring both parties receive ongoing revenue.

Social Tokens

· Creators mint their own tokens for fans to buy or trade.

· Revenue primarily comes from token sales and fan engagement.

· Rally enables creators to build closer ties with their communities through token ownership.

Web3 Games/Entertainment - Freemium Model

· Web3 games generate revenue from in-game purchases, marketplace fees, or play-to-earn models.

Decentralized AI

· Decentralized cloud service providers, such as Akash Network, rent out computing power.

· Users pay for these resources with tokens, competing directly with traditional cloud service providers.

· There are also projects working on solving problems such as decentralized training, workflow, data scraping/collection, etc.

Launch Platforms

· Launch platforms like DAO Maker help projects raise funds through token sales, earning a certain percentage or charging fees.

Revenue Generating Projects

Projects that have real-world utility consistently outperform projects that rely on speculative token economics in the long term. Revenue-driven models are increasingly becoming the foundation for the most successful Web3 businesses, proving their value to users and investors through sustainable business models. This chart provides a comprehensive view of the top revenue generating crypto projects.

It is great to see projects like Tether, Tron, and ETH dominating the space, all of which are independent blockchains/tokens that form the base layer of Web3.

When we look at the applications that have reached $100 million in revenue the fastest, we see a strong correlation between real-world utility and the financial performance of the project.

· Projects focused on real-world applications, such as decentralized exchanges and DeFi platforms, tend to grow faster.

· Their ability to generate steady income through transaction fees, staking rewards, percentage of reward pools, etc. are some of the methods that have helped them quickly grow to close to $100 million in revenue in such a short period of time.

Let’s take a look at some of the most interesting projects out there right now.

1. Helium

Helium is one of the top performing projects of 2024, focusing on mobile operator services as an alternative to traditional service providers. It is focused on consumer scale and user onboarding, and utilizes Solana for settlement. The value of its token 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 are interacting with the blockchain. Signups have surged over the past year, reflecting Helium's solid push towards greater usage and adoption.

According to depin.ninja, Helium is #1 in terms of recent revenue generation. They've done some amazing work, and it will be interesting to watch how revenues rise as the 2025 halving approaches.

2. Decentralized Exchanges (DeX) (like Uniswap and Jupiter)

Uniswap remains the largest DEX and continues to generate strong trading volume. However, with Solana’s recent surge in popularity, Solana-native DEXs like Jupiter are beginning to significantly take market share from Uniswap.

Overall, the market outlook for DEXs looks positive, with platforms generating fees on every trade and handling a large volume of trading. Just across the top five DEXs, trading volume is close to $45 billion, a number that is impressive compared to almost every other sector.

3. Farcaster

Farcaster is perhaps the largest crypto social media platform, focusing on user-owned content and interactive experiences. Rather than relying on token speculation, users pay for permanent storage of their accounts, which has helped the platform generate some serious revenue.

It has also benefited from support from the meme coin community, as well as the participation of high-risk investors ("degens"), which has gained attention and support. Despite its low revenue compared to other industries, Farcaster is still a leading protocol in the crypto social space. It will be interesting to see how they scale to achieve their goal of 10 million users in the coming years.

4. GEOD

GEODNET is the world's largest Web3-based real-time dynamic positioning network (RTK), providing high-precision location services for artificial intelligence (AI), the Internet of Things (IoT), and autonomous systems. By using real-time dynamic positioning (RTK), GEODNET aims to achieve 100 times the location accuracy compared to traditional GPS. This enhanced accuracy is critical for applications that rely on device sensors such as cameras, LiDAR, and Inertial Measurement Units (IMUs), making it a key player in advancing AI-driven autonomous systems.

The network has grown rapidly, with over 9,000 miners now deployed worldwide, and has consistently seen 10-15% monthly revenue growth since the beginning of the year.

GEODNET is on track to achieve $2-3 million in Annual Recurring Revenue (ARR) by the end of the year, making it one of the largest high-margin Decentralized Physical Infrastructure Network (DePIN) projects with strong potential for further growth.

Not only is their technology more accurate, it is also 90% cheaper than the competition and offers wider global coverage.

Working with partners like the USDA, GEODNET is proving that long-term, steady growth can produce significant results, with the company already demonstrating a 20x revenue increase from $5,000 to over $100,000 per month.

5. Across Protocol

Across Protocol is a cross-chain bridge that enables seamless asset transfers between different blockchains. It earns revenue by charging fees on these transfers, making its success directly tied to the demand for fast and secure cross-chain liquidity. As more assets flow between chains, especially as multi-chain ecosystems grow in popularity, Across has taken a key position in this space.

In the past month, Across Protocol has dominated Ethereum chain transactions, processing more than 60% of all Ethereum bridges through JumperExchange. This strong performance shows its growing influence in cross-chain operations. Thanks to "intents", a new cross-chain interoperability method, Across is setting the standard for a smooth and efficient user experience when transferring assets between blockchains. Compared to other bridges, it generally provides extremely low latency, measured in seconds, while other providers require minutes.

It is gradually rising in the competition for the network of cross-chain transfer service providers.

6. Kamino

Kamino focuses on optimizing liquidity management and provides users with a range of tools including lending and leverage strategies. The platform has experienced significant growth and has reached nearly $14 million in annual recurring revenue (ARR).

Over the past year, Kamino has generated approximately $30 million in accumulated interest for its users, highlighting its ability to provide stable returns through decentralized finance (DeFi) products.

7. Stablecoins (Tether & Circle)

Stablecoins have become indispensable in the Web3 space, with Tether (USDT) and Circle (USDC) leading the way. These two giants dominate the market as the preferred stablecoins for traders, developers, and users. Their widespread adoption and liquidity have made them the backbone of many decentralized finance (DeFi) platforms.

Tether, in particular, is often compared to major Web2 financial companies such as JPMorgan, Visa, and Mastercard due to its rapid rise and dominance in the financial ecosystem. In a short period of time, it has managed to surpass many traditional giants and take the lead in market coverage and integration with the crypto market.

Tether and Circle consistently outperform other stablecoin providers and blockchain protocols, holding the largest market share in Web3. Their stability, liquidity, and integration across multiple chains and decentralized applications (dApps) set them apart and make them an important part of the space.

Summary:

These projects demonstrate how real-world utility is becoming increasingly important in driving crypto revenue.

Whether through infrastructure, social, gaming, or DeFi (decentralized finance), the future of Web3 will be shaped by projects that successfully combine their token economics with real-world utility and sustainable revenue models.

What didn’t work?

Friend.tech is a great example of how a project can quickly generate hype and revenue, but fail to establish long-term sustainability. It’s a great example of why not all startups that are profitable succeed.

The app’s rise to fame stemmed from users purchasing other people’s “keys” (shares) in the hope that as users’ popularity grew, so would the value of those “keys”, and more and more users would join over time. However, with no real utility beyond speculative trading, users quickly lost interest after the initial excitement wore off. Additionally, the initial rush can also be attributed to the team teasing an airdrop to early participants — but since then, the platform has seen little utility and user adoption.

Speculation-driven economies are inherently fragile — users seek quick gains but leave when no real value is provided. In contrast, platforms like Uniswap and Helium have maintained long-term engagement by providing real-world utility, demonstrating that sustainable success comes from creating lasting value, not hype. Friend.tech lacks this foundation, leaving little incentive for users to continue participating once the hype of speculation fades.

The conclusion is clear: in order for Web3 platforms to thrive, they need to provide substance beyond speculation.

Why projects that rely too much on tokens struggle in the long term?

Projects that rely too much on token hype may achieve rapid success but struggle to sustain 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 wears off and users realize there is no deeper value, token prices collapse, causing users to exit, creating a vicious cycle.

This problem was evident in Axie Infinity, a game that relied on a dual-token system to support its growing player base. As the number of users continued to increase, the economy became over-inflated and token rewards could no longer sustain user growth. Eventually, the entire system collapsed as the token economy could not keep up with the rapid growth of players.

Chart of Axie Infinity

A similar problem occurred with STEPN, a fitness app that initially attracted users by offering token rewards to incentivize physical activity. However, as token supply increased and prices fell, user engagement declined, exposing the fundamental flaw of relying solely on token incentives to drive long-term engagement. Although Axie generated significant revenue from marketplace fees and in-game purchases, the project's reliance on token growth and user expansion ultimately led to its failure when growth rates slowed.

Similarly, STEPN, a fitness app that initially attracted users through token rewards, failed to maintain user engagement after the token price fell due to oversupply. Although Axie generated revenue through purchases and market fees, its business model was too dependent on user growth and token rewards, which ultimately led to failure when growth slowed.

Web3 Games vs. Web2 Games

The challenges faced by projects like Friend.tech and Axie Infinity highlight a larger problem in the Web3 gaming space. Web3 games face challenges in terms of revenue generation compared to traditional Web2 games. For example, one recently released Web2 game made $600 million in its first week — numbers Web3 games have yet to come close to matching. This isn’t because Web3 games are a bad concept; it’s because the technology is not being fully utilized, resulting in many missed opportunities.

A major issue is that many Web3 games are still too focused on token-based systems where players are incentivized through financial rewards rather than actual gaming experiences. This over-reliance on token economics creates unrealistic expectations, leaving players disappointed when the gaming experience fails to live up to the hype. To truly compete with Web2 games, Web3 projects need to shift their focus towards what makes the games themselves fun and engaging. Technology should be used to enhance the gaming experience, rather than being at the center of the game.

To succeed, Web3 games must shift to a model where gameplay is at the core. Blockchain technology has the potential to deliver innovative experiences, but it should be used as a tool to enhance immersion, not as a driver of an entire economy. Web3 games can only reach their potential when the focus shifts from token economics to creating truly fun and engaging player experiences.

So, what changes should be made?

Financial Metrics of Success

Web3 projects must move beyond a pure focus on token price. Traditional tech companies track key metrics such as revenue, profit margins, and active users, and Web3 projects should do the same by measuring actual user activity and value creation.

The focus should be on identifying and defining a set of key metrics that are appropriate for specific industries and specific businesses - this can only be achieved through more specific benchmarking with Web2 counterparts and active communication with customers.

User-Centered Design

Another important shift is to focus on User Experience (UX) — easy-to-use interfaces and interactions with technology.

Web3 platforms need intuitive, user-friendly designs to ensure their long-term growth. Currently, most experiences are complex, involving complicated wallet management and steep learning curves, which makes it easy for new users to give up halfway.

Simplifying the onboarding process and improving wallet usability are key steps. Great projects like Privy, Dynamic, and Turnkey are working on solving these problems.

Long-term user engagement is equally critical. Platforms must provide real value to ensure users keep returning, not just speculative rewards. For example, Audius enables artists to connect with fans in a meaningful way, adding value beyond token incentives. This, combined with the right technical solutions, is exactly what is needed.

Challenges of Utility Implementation

One of the biggest challenges is scalability. Blockchains often face difficulties in processing a large number of transactions at a low cost. For example, Ethereum’s high gas fees have hindered wider adoption, and developers are turning to other chains such as Sui and Solana.

Interoperability is also an ongoing issue, as many platforms operate in isolation. Cross-chain solutions like Polkadot and Cosmos are making progress, but they have yet to truly become market leaders.

Finally, regulation is always a major challenge. This has eased somewhat with the ETF approval, but there are still concerns and blurred legal lines that need to be addressed.

Conclusion

Web3 has tremendous potential, but to achieve lasting success, it must look beyond token speculation. Projects like Friend.tech and Axie Infinity show that while hype can lead to quick gains, it does not equate to sustained long-term growth.

To thrive, Web3 platforms must focus on creating real value — which starts with:

· Building products with real utility

· Tracking meaningful metrics like active users and transaction volume, not just token price

· Building for users

· Creating a seamless and engaging experience for users

· Going beyond hype based on speculation and prioritizing the utility of the product.

Simplifying the user experience and solving real needs will foster long-term user engagement. Overcoming technical challenges like scalability, interoperability, and regulation will be critical to broader adoption. The future of Web3 lies in projects that combine innovative technology with practical, user-centric solutions to create lasting impact beyond token economics.

Disclaimer

The editor of this post holds investments in HNT (Helium) and GEOD (GEODNET) but is not the author of this post.

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