Validators process transactions and receive fees from users (supply-side fees).

Algorand is a smart contract platform for decentralized applications (a blockchain). Algorand was founded by Silvio Micali and launched in 2018.

ALGO holders own and govern the protocol. They currently take a cut of the transaction fees paid by users (revenue). Algorand's investors include Union Square Ventures, Multicoin Capital, Pillar, etc.

github

twitter

discord

etherscan

website

Blockchains (L1)

Algorand

# Algorand Average revenue per user (ARPU) Methodology

## 1. Overview

Average revenue per user (ARPU) measures the amount of revenue generated by Algorand for each active user on a daily basis. This metric is used to evaluate the network's ability to monetize its user base and reflects the economic density of activity. Revenue for Algorand is derived from transaction fees paid by users to the network, and the user base is defined by the number of unique addresses initiating those transactions.

## 2. Data sources

- **Active users (daily)**: Derived from the Active users (daily) metric
- **Revenue**: Derived from the Revenue metric
- **Blockchain events**: Transaction-level data containing `sender` and `fee` attributes, covering the Algorand blockchain
- **External data**: End-of-day price feeds for the native ALGO asset

## 3. Step-by-step calculation

### Component A: Daily active user tracking

- **Purpose**: Identifies the number of unique participants on the network each day
- **Logic**: Unique user addresses are identified by parsing the `sender` field from all transaction records. A distinct count of these addresses is performed for every 24-hour UTC window. Only transactions with a valid, non-null `sender` are included in the aggregation.
- **Key fields**: `sender` (user identification), `block_timestamp` (timing)

### Component B: Revenue and fee extraction

- **Purpose**: Captures the total value paid by users for network utilization
- **Logic**: Transaction fees are extracted from the `fee` field of all processed transactions. These values are initially captured in MicroAlgos and are normalized to the native ALGO amount by dividing by 1,000,000. Protocol revenue is determined to be 100% of these collected fees.
- **Key fields**: `fee` (transaction cost), `block_timestamp` (timing)

### Component C: Aggregation and USD conversion

- **Purpose**: Normalizes daily revenue to USD for consistent measurement
- **Logic**: Daily fee totals are aggregated by summing all normalized transaction fees within a UTC day. These native ALGO totals are then multiplied by the end-of-day price of the ALGO asset.
- **Key fields**: `fees_native` (daily native fee total), `price_usd` (asset price)

### Component D: Average revenue per user calculation

- **Purpose**: Determines the final ARPU value
- **Logic**: The total daily revenue in USD is divided by the total number of unique active users (daily). This quotient represents the daily monetization rate per individual user. In instances where no activity is recorded, the value is set to zero to ensure data continuity.
- **Key fields**: `revenue` (USD total), `user_dau` (active user count)

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

AlgorandALGO

Average revenue per user (ARPU)

Average revenue per user (ARPU)

Competitive landscape