There are currently 2 million accounts on Flow, 17 million NFTs issued, and more than 10 million secondary NFT transactions, making it the fastest growing blockchain in the world. The foundation for this development has been laid by flagship applications like NBA TopShot, but Flow’s vibrant ecosystem has evolved into a platform for everyone to build consumer-grade blockchain applications. This is a follow up analysis from the original article published by CoinList.
And it’s just getting started.
A new wave of compounded network effects is set to combust, thanks to the igniting spark of brands like NFL, UFC, La Liga and Genies launching their blockchain-enabled experiences on Flow. A blockchain wallet will put blockchain technology in everyone’s hands and bring blockchain technology to billions of people.
How to grow to billions?
With masses making the move towards blockchain, many Layer-1 and Layer-2 projects vie for the newbiesâ€™ attention. As disperse these projects might be, the major challenge they are facing is mostly identical: To trigger rapid growth, a project has to enter the cycle of compounding network effects.
Starting from zero, this cycle is immensely difficult to tap into: Users will only come, if quality applications exist; quality applications only exist, if developers build them; but developers will only build, if thereâ€™s an audience.
However, as vicious this cycle can be for those starting from scratch, it quickly turns into a positive feedback loop for those who are able to enter, triggering considerable growth with each consecutive cycle: new applications attract new users, and a bigger audience lures more developers and brands to build new applicationsâ€Šâ€”â€Šthatâ€™s the huge upside of compounding network effects.
From zero to the worldâ€™s fastest growing blockchain
Flow set out to enter the cycle of compounding network effects by enabling world-class teams to build excellent applications and tapping into the potential of existing non-blockchain communities. In October 2020, NBA TopShot launched with a record-breaking product which rapidly turned Flow into the worldâ€™s fastest growing blockchain, while proving the scalability and reliability of the protocol even under enormous loads.
NBA Top Shot was the first blockchain-based product to reach over 1 million consumers, with over $80M in primary revenue and $750M+ via secondary marketplace where fans captured the majority of value. Up to this day, the average monthly sales and average monthly traders are higher than those of Axie Infinity, Sorare, Bored Ape Yacht Club and CryptoPunks combined, and NBA TopShot is certainly one of the reasons why Flow already has a higher number of secondary sales than WAX, Ronin, Ethereum or Polygon.
From flagship application to vibrant ecosystem
However remarkable this success may be, NBA Top Shot was in a sense just the sparkle needed to ignite the network effect on Flow: Fun and games pave the way for the mass adoption of a technology. With NBA TopShot, Flow was able to attract a critical mass of users to enter the circle of compounding network effects.
In the months following the launch of NBA TopShot, Flowâ€™s ecosystem exploded, and new projects continue to pop up on a daily basis. From grassroots games like Chainmonsters over NFT giants like Rarible to renowned organisations like CNNâ€Šâ€”â€Šmore than 600 teams are already building applications on Flow.
These projects have picked up significant traction of their own. Chainmonsters concluded its Alpha phase with over 70,000 players, while their Genesis Drop sold out in minutes, generating over $1M in sales. Blocto, a popular wallet on Flowâ€™s, has attracted over 230,000 users, totalling to more than $5M revenue year to date while managing $500M staked FLOW tokens by the community. Their Flow-based IDO was 22x oversubscribed with more than $13M of demand. There are projects getting ready to launch spanning all major categories from art to music to digital fashion to comedy and many moreâ€¦
Beyond that, the projects in Flowâ€™s rapidly growing ecosystem have managed to attract the attention and commitment of many investors: Up to date, over one billion dollars have been raised by companies building on Flow, not including the $600M+ raised by Dapper Labs. This is how Flow enables developers to build thriving businesses on blockchain.
A next wave, powered by the worldâ€™s biggest brands
These numbers show that Flow has managed to leverage the radiance of NBA TopShot to tap into the cycle of compounding network effects; and the flagship-centred nascent phase has made room to a vibrant non-custodial ecosystem that provides infrastructure for thousands of applications to come. In this first cycle, Flow has matured into a scalable and accessible platform thatâ€™s ready for everyone to build consumer-scale blockchain experiences.
These developments have not gone unnoticed by some of the biggest brands in the world: The NFL, UFC, La Liga, Genies, Dr. Seuss, Turner and many more are all ready to launch their own blockchain-enabled experiences on Flow, kicking off a next cycle of compounding network effects that already has much more weight from the start. Leveraging the power of this next wave, Flow sets out to bring blockchain to billions, making the technology accessible to a mass-audience and putting a blockchain wallet into every pocket.
Flow Fest: Celebrating Flowâ€™s Exciting Journey
To celebrate these exciting times, the entire Flow ecosystem is organising Flow Festâ€Š hosted by Flowverse and The First Mintâ€”â€Ša month-long festival of quests, events and partner pack drops. Head over to Flowverse to see the details of Flow Fest and how you can be a part of it.