What do the Numbers say about the Future of “Node as a Service”
Numbers don’t lie, so let the data tell us:
- Is the “node” space dead?
- Who’s losing/winning?
- Will the node szn come back?
Current status
The entire space is shrinking in value.
On average, “nodes” price drops ~20% each week. This means your expected days for ROI are getting pushed out further and further.
The majority of the projects share a similar downward trendline. Only $POLAR & $HORDE remained relatively positive.
Looking at the “node” creations, interestingly the growth rate is quite constant, e.g. There have been ~20% more $FIRE nodes being created every week. It could mean there is a clear split between the team compounding & the team claim&sell.
After countless “rugs” and “exploits” so far, below are the TOP survivors ranked by TVL (Total Value Locked).
Who’s winning?
It is clear from the price chart that $HORDE & $POLAR have been the healthiest so far.
In terms of node creations, 17% more $HORDE nodes have been created every single week, and $POLAR 10%.
Note that $FIRE has the crazies node creations, but the price action hasn’t been great.
Who’s losing?
Almost everyone else. The prices of most of them have dropped by ~70% in a month.
In terms of node creations, $STRONG, $THOR and $POWER (all around 3–5%) are the slowest. Likely due to the fact that investors are all aware newer projects have bigger potentials.
Will the node szn come back?
A bit of history first.
Late last year, when DaaS/NaaS started (the $RING fork szn), nodes had a crazy run for about a week, before everything fell apart. e.g. $POWER went from $1 to $200, and then dropped to $0.6 cents. $COMB $THOR $LVT all share the same pattern as $POWER.
After a few announcements on a few validator node purchases. All these projects suddenly came back to life.
This time, will they suddenly come back?
Probably not imo.
At least from the charts, they are quite different patterns, i.e. free falling vs. slowly dying.
A simple new feature/investment from a project won’t do anything tbh, what we need is a revolution.
Why we won’t come back suddenly?
Let’s see the historical reasons for why we came back last time:
- Not many knew what validator nodes do
- Not many understood how low these validator nodes’ APY is
- The “nodes” & “passive income” tags sound so good
- FOMO on price
Right now, we are more educated and have better knowledge about sustainability.
How to bring back the node szn the right way
Imo, only 3 streams that could bring back the szn again:
- Some projects figured out a solution to bring in good external income
- A truly innovative model
- A magical formula of token utility
