An investor often has to analyze not only cryptoprotocols, but | 9RD Analytics

An investor often has to analyze not only cryptoprotocols, but also blockchains. After all, investing in their native tokens is often profitable. Many have old blockchain cryptocurrencies in their portfolios, such as ETH, BNB, SOL. And if you need to make a decision on a lesser known blockchain? Then you need to analyze it.
Blockchain is the basis on which developers build their decentralized applications (Dapps). One of the sources of income of any blockchain is transaction fees. The more applications and the more users they have, the more profitable it is for the blockchain. As there are more transactions, the amount of fees is higher.
Therefore, by analyzing the number and quality of applications, we can understand how popular, useful and profitable a particular blockchain is.
The gold standard for the number of Dapps is Ethereum, which according to different data has about 3000-3500 Dapps. There are very many apps with billions of TVL on it: MakerDAO, Lido, Curve, Uniswap, etc. There are about 1 million transactions per day on this blockchain in 2022.

Now let's compare, for example, with the blockchain that calls itself the progenitor of Ethereum - EthereumClassic. As of December 7, 2022, there are 46 applications functioning on the blockchain, according to official data from the website. The difference is obvious. The number of transactions per day in December 2022 is 40,000-50,000, on which the blockchain earned $66-$134 per day.
EthereumClassic is chosen simply as an example to make it easier for you to understand the line of thinking. To be fair, back in April 2022, when we studied this blockchain, there were 28 applications on it. That is, in six months, that number has grown by 64%.

The conclusion is that blockchain is the baseline, the infrastructure for building applications. If there are few applications on a blockchain, it doesn't make a lot of profit, it doesn't have a lot of cash of its own, and its coin can't be worth much. It is just like in a traditional business, if a company is not profitable, its stock cannot be worth much.
The second conclusion is that such a blockchain can still be interesting for an investor if the blockchain has factors indicating growth potential. In that case, you are lucky to find an undervalued asset.
The analysis of the blockchain ecosystem is just one aspect of the overall fundamental analysis, which complements the overall picture.

#ecosystem