Originally published on Dune Analytics Blog on July 8, 2024

I’m pleased to share here the analysis I wrote for Dune Analytics’ blog on May 20th, 2024.

How Arbitrum Aims to Secure its Position in the Growing Gaming Landscape

As Arbitrum just marked the first anniversary since the launch of its nativer token ARB on March 23rd, 2023, a striking discrepancy emerges in the market dynamics between Optimism and Arbitrum. Despite Arbitrum boasting superior metrics, ARB's price consistently hovers at approximately half that of Optimism. Is the market overvaluing Optimism? A closer examination reveals that the OP token price may reflect not just Optimism itself but also the performance of the broader OP Stack. When factoring in the substantial contribution of Base, the revenue multiple (Price-to-Sales ratio) leans lower than Arbitrum, suggesting that OP is potentially less overvalued.

In social media platforms and their economies, content and engagement serve as 'currency’. Akin to some traditional currencies, they are experiencing inflation.

Points serve as engagement units that organizations leverage to reward users for completing specific tasks. Their application extends far beyond crypto, encompassing airline miles, hotel booking levels, loyalty programs like Starbucks’, and more. An intriguing, albeit lesser-known, application of similar incentive structures is observed in certain ethnic minority villages in China.

The article examines economies of scale in Ethereum rollups, highlighting Optimism's decreasing costs per transaction and Mb of data with higher volumes, suggesting efficiency gains. In contrast, Arbitrum shows increasing costs per transaction and Mb with higher volumes, indicating potential inefficiencies. Further research is needed for a more nuanced and comprehensive understanding.

Farcaster nailed PMF for a core community of passionate crypto users. Should it attempt to scale to a broader audience or continue focusing on its niche? Lens Protocol, emphasizing creators monetization, might be better suited for broader outreach.

The transformative landscape of AI, set to contribute $15 trillion to the global GDP by 2030, presents a complex web of interconnected issues like data access, compensation, and evolving work dynamics. As we disentangle it and analyze each component, a logical progression unfolds that ultimately underscores blockchain potential in addressing data utility, individual economic value, and ownership.