MEASURING GROWTH IN CRYPTO

Summary from the TLDR Crypto newsletter

Crypto companies must adapt rather than copy web2 marketing playbooks, with different business models requiring distinct approaches: L1/L2s focus on Monthly Active Addresses and developer ecosystem growth, protocols track users/volume/TVL, while wallets and games use more traditional DAU and ARPU metrics. Core web2 metrics like Customer Acquisition Cost, Lifetime Value, and LTV:CAC ratios require crypto-specific adaptations to account for wallet-based customers, token incentives, and onchain value creation, while the marketing funnel stages present unique challenges, including restricted advertising access, complex attribution tracking between web2 and onchain actions, and distinguishing organic growth from airdrop farming. Crypto has unique advantages like onchain data transparency and instant verifiable rewards, but over-relying on incentivized metrics may mask a lack of product-market fit.