99% of Blockchain Projects Fail to Generate Revenue, Revealing Industry Crisis
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 12 2026- Industry Status: A report from Singapore's Tiger Research reveals that 99% of Web3 projects failed to generate any revenue in the past 30 days, with only about 200 projects earning at least $0.10, highlighting a structural flaw in the blockchain industry that forces investors to reassess sustainability.
- Survival Mechanism: These so-called 'zombie projects' continue operations by consuming investor capital and token reserves, with typical monthly expenses including team compensation ranging from $50,000 to $200,000 and marketing costs between $20,000 and $150,000, indicating a dangerous dependency on market liquidity.
- Flawed Funding Models: The report identifies three major structural issues within the industry, including a focus on token issuance over service delivery, misaligned incentives allowing founders to profit despite project failures, and speculative funding based on narratives rather than revenue potential, severely hindering the development of sustainable business models.
- Future Outlook: Tiger Research recommends improving Web3 project viability by establishing clearer revenue pathways before token creation, adopting more conservative valuation methodologies, and focusing on user adoption metrics, which will help the industry transition towards sustainable economic models.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
