BlackRock is the world's largest asset manager, with $10 trillion in assets under management.

We researched the firm's crypto strategy, so you don’t have to.

Here's what we found:

1. DIGITAL ASSETS (ASSET CLASS)

The firm divides the crypto asset class into three different buckets:

1⃣ Cryptoassets (e.g. BTC)
2⃣ Stablecoins (e.g. USDC)
3⃣ Tokenized assets (e.g. BUIDL)

Strategy:

▪️ Owner of @iShares, Bitcoin Trust ($18B AUM)
▪️ Owner in @circle, the issuer of USDC ($32B supply)
▪️ Owner in @Securitize, the transfer agent for the BUIDL onchain money market fund ($300M AUM)

2. BITCOIN (ASSET)

The firm sees three unique advantages to BTC the asset:

1⃣ Internet-native (globally accessible)
2⃣ Cross-border (transactional efficiency)
3⃣ Capped supply (inflation hedge)

Strategy:

▪️ BlackRock serves customers across the globe and now, with BTC and IBIT, has a unique product to sell to its clients.
▪️ It’s likely that BlackRock will productize all major cryptoassets (ETH, SOL, etc.) in a similar manner.

3. BLOCKCHAIN (TECHNOLOGY)

The firm believes that blockchain technology can improve capital markets in several ways:

1⃣ 24/7 operational capital markets
2⃣ Improved transparency and investor access
3⃣ Lower fees and faster settlement

Strategy:

▪️ We believe that @BlackRock will eventually launch its own blockchain, and follow a similar playbook that Coinbase has used with @base.
▪️ This would allow BlackRock to concentrate the recordkeeping of its holdings across asset classes ($10T AUM) to a single, global, interoperable, and transparent ledger. Great interview on the topic w/ @robbiemitchnick

🗞️ The latest edition of the 'Weekly fundamentals' is out!

This week’s newsletter focuses on daily active users, a metric that has a designated dashboard on Token Terminal.

Let’s dig in! 👇

tokenterminal.com/weekly-fundame… Check out the daily active users dashboard here 📊⤵️

tokenterminal.com/terminal/metri…

There are currently six different ways to interact with on-chain data on Token Terminal:

1⃣ Metrics
2⃣ Market sectors (🆕)
3⃣ Projects
4⃣ Trending contracts
5⃣ Financial statements (🆕)
6⃣ API (🆕)

⤵️⤵️⤵️ 1⃣ Metrics

tokenterminal.com/terminal/metri…

1/ Introducing 'market sector' dashboards 🚨📊

Gm to all the crypto fundamentals enjoyoors!

In our latest product update, we’ve sought to bring even more structure to the Token Terminal web application.

🧵⤵️ 2/ There are currently six different ways to interact with on-chain data on Token Terminal:

1⃣ Metrics
2⃣ Market sectors
3⃣ Projects
4⃣ Trending contracts
5⃣ Financial statements
6⃣ API

What is an Ethereum 'L2'?

One simple inclusion criteria:

Are the economics shared with the L1?

Chain & what token transaction fees are paid in:
1⃣ Optimism --> ETH ✅
2⃣ Arbitrum --> ETH ✅
3⃣ Starknet --> ETH ✅
4⃣ Polygon --> MATIC ❌ 🔗 Optimism chart:

tokenterminal.com/terminal/proje…

🎙️ A new 15-minute fundamentals is out!

In this series, we interview core protocol contributors & together dive into the details behind the charts available on Token Terminal.

For our latest episode, we had the pleasure of hosting Seb from @GainsNetwork_io.

Tune in below! ⤵️ 🎙️ Link to the episode:

1/ How much does it really cost to run a DAO?

In this article, we provide a breakdown of the operational costs of @MakerDAO, @LidoFinance, and @SushiSwap. 2/ To drive transparency & accountability in the markets, trad. publicly-traded co's release quarterly fin. statements that break down their financial performance for all stakeholders.

Investors can analyze the revenue & the expense side of the co's through these reports.

1/ Is crypto ☠️?

Well, no.

Let's explore the state of crypto through the lens of fundamentals 🧵👇

We’ll analyse the crypto market w/ the following metrics:

1⃣Fees
2⃣Revenue
3⃣Token incentives
4⃣Earnings
5⃣P/F ratio
6⃣P/S ratio
7⃣Daily active users
8⃣Active developers 2/ Fees

This metric tells us how much end users are willing to pay for the service that a protocol provides.

Examples:
- Blockchains = transaction fees
- DEXs = trading fees
- Lending protocols = interest
- NFT marketplaces = royalties and marketplace fees

it's happening 🐇🕳️ 📊📈

https://twitter.com/adrianlai2022/status/1610843493425111046

Daily active users in web3 👥⤵️

🥇 BNB Chain ~1.1m
🥈 Polygon ~394.5k
🥉 Ethereum ~344.6k
4⃣ Solana ~120.3k
5⃣ Fantom ~58.2k
6⃣ Arbitrum ~58k
7⃣ OpenSea ~54.4k
8⃣ Optimism ~49.3k
9⃣ Uniswap ~44.5k
🔟 Avalanche ~30k

How do these figures convert into fees paid by users? 🧵⤵️ BNB Chain ⤵️

🚨🚨🚨

Solana active (core) developer data is now updated!

Right now, we're including all repos from github.com/orgs/solana-la…, except "solana-labs/token-list".

https://twitter.com/jump_ripatel/status/1604147374791835648

Updated chart including other projects ⤵️

tokenterminal.com/terminal/metri…

... or that it's inevitably going to be an iterative to process to get to a useful end result?

We made a conscious decision to not use the repos listed by @ElectricCapital, since the numbers felt 'inflated' for tracking the core development activity of a protocol.

Examples ⤵️🧵

https://twitter.com/0xngmi/status/1604108742311780352

Re Solana:

One fix here could be to manually remove the 'token-list' repo from the calculation. Considering this.

In general, there's inevitably going to be similar situations with other projects going forward, and that's OK!

They just have to be identified and fixed.

1/ Why fundamental analysis inevitably becomes the norm in crypto 🧵👇 2/ Our core belief is that fundamental analysis will drive investor behaviour in crypto during the next cycle.

Why?

Because the crypto market has the following characteristics:

- clear business models
- open and standardized data
- a global crowd of sophisticated investors

how many retweets can this (message) get? 1/ “What the recent events have shown are the benefits of on-chain lending. DeFi more broadly, but on-chain lending, where you have complete transparency on everything that your capital is being lent to.”

1/ Launching the Token Terminal APIv2

A new era in on-chain accounting has arrived 🧵 2/ gm, fellow on-chain data enjoyooors ☕️📊

Tl;dr: we’re launching a new and improved version of the Token Terminal API.

🚨 Introducing "sound businesses" leaderboard!

It includes 4 data points:

1⃣ Fees, paid by end users
2⃣ Revenue, fees going to the protocol
3⃣ Token incentives, new token issuance
4⃣ Earnings*, revenue minus token incentives

* Not = TradFi earnings

tokenterminal.com/leaderboards/e… 🧐 How to navigate between the dashboard & tokenterminal.com?

1⃣ Sort by e.g. 30D time frame + token incentives
2⃣ Click on individual protocols (here: ETH, OP, LDO)
3⃣ Select "Token incentives" button on their dashboards
4⃣ View the token incentives data historically

1/ Revenue multiples are coming to crypto/web3 👋

And here's why 👇🧵

tl;dr: because crypto tokens are revenue-generating assets 2/ Let's start by looking at how a traditional marketplace business (@Uber) would be analysed on tokenterminal.com

1/ Flashbots ELI5 🧵 2/ Blockchains are marketplaces between users and miners, where users pay fees to miners to get their transactions included in a block

1/ Can you find the common denominator for all the charts below? 🔍 2/ Monthly avg. fully-diluted market cap & total trading volume for @0xProject.

tokenterminal.com/terminal/proje…

Market cap comparison:

██ ██
@RobinhoodApp @Uniswap

Which one would you rather own? 🧐 a comparable revenue # for Uniswap would be 10-20% of the below trading fee revenue currently paid to LPs

note: Uniswap chart is 'monthly' and Robinhood 'quarterly'

1. tokenterminal.com/terminal/proje…
2. s28.q4cdn.com/948876185/file…

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┃╱╱╲╲ this
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▔▏┗┛▕▔ we
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buy & HODL cryptoassets
with actual cash flows
╱╱┏┳┓╭╮┏┳┓ ╲╲
▔▏┗┻┛┃┃┗┻┛▕

tokenterminal.substack.com/p/crypto-token… How do crypto protocols work?

At a high-level:

1. They provide a service
2. Charge a fee for it, and
3. Distribute the fees between the stakeholders, i.e. supply-side participants and token holders