1/ Metaplex is the 3rd most popular app on Solana with DAA trending up and has a commanding position in the token creation market.
But does this mean MPLX is worth the risk?
2/ The protocol has a vast array of programs and tools each with its own fee structure.
These allow teams to easily launch their own NFT projects and storefronts with minimal technical effort.
3/ One of these more popular programs, Metadata, has become more balanced over time as it began to serve fungible tokens as well. This bodes well for sustainability and highlights the adaptive nature of the team behind the project.
4/ The popularity of Metaplex's holistic offering has led to over 60K SOL generated for 2024. This equates to an ~$18M annual revenue run rate assuming the price of SOL remains the same 👀.
5/ What's more, in late March 2024, Metaplex unveiled a new initiative that allocates 50% of all protocol fees, both past and future, to repurchase MPLX tokens.
10K SOL has already been used to buy back ~3.77M MPLX tokens.
6/ However, only 54% of the tokens are currently circulating and the majority of tokens (over 75%) were allocated to the team and insiders.
This supply overhang does pose a risk to tokenholders.
7/ Growing demand, more diverse revenue streams, commanding market share, and a buyback program make Metaplex an exciting project. However, a low circulating supply and sole reliance on the Solana ecosystem remain notable risks.
8/ To learn more about how @metaplex, including token-unlocks, upside potential, and more subscribe and check out our latest report by @marcarjoon
From Twitter
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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