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

Celo is a smart contract platform for decentralized applications (a blockchain). Celo was founded by Rene Reinsberg and Marek Olszewski and launched in 2020.

CELO holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue). Celo's investors include a16z, Greenfield, Electric Capital, etc.

governance

github

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etherscan

website

Blockchains (L2)

Celo

# Celo Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average daily revenue generated per active user on the Celo L1 (legacy) network. This metric answers the business question: "How much revenue does each active user generate on average per day?" The calculation divides daily revenue by daily active users, providing insight into the economic value of user engagement. The methodology accounts for Celo L1 (legacy)'s transition from L1 to L2 architecture on March 26, 2025, which changes both the revenue calculation method and product classification.

## 2. Data sources

The calculation relies on the following raw data sources:
- **Celo L1 (legacy) blockchain transaction records**: Complete transaction data including sender addresses, gas usage, gas prices, effective gas prices, and fee currency information
- **Celo L1 (legacy) blockchain block records**: Block-level data including base fee per gas amounts and timestamps for L1 fee calculations
- **End-of-day token price feeds**: USD price data for converting token-denominated fees to USD values
- **Token metadata**: Decimal precision information for proper unit conversion during price calculations

## 3. Step-by-step calculation

### Component A: Daily active users calculation
- **Purpose**: Count the number of unique users (transaction senders) active each day on Celo L1 (legacy)
- **Logic**: Extract transaction sender addresses from Celo L1 (legacy) transaction records and count distinct addresses per day. The calculation truncates timestamps to daily boundaries and identifies unique `from_address` values. Users are classified as "Transaction sender" type. The system handles Celo L1 (legacy)'s architectural transition by changing the `product_id` from 'Celo L1 (legacy)' to 'Celo L1 (legacy) L2' and `market_sector_id` from 'blockchains_l1' to 'blockchains_l2' for transactions after March 26, 2025. HyperLogLog aggregation enables efficient distinct counting across multiple dimensions including chain, user type, and product.
- **Key fields**: `from_address` as user identifier, `block_timestamp` truncated to day for temporal grouping, `product_id` for L1/L2 classification

### Component B: Daily revenue calculation
- **Purpose**: Calculate the total daily revenue generated from transaction fees on Celo L1 (legacy)
- **Logic**: Revenue calculation differs based on Celo L1 (legacy)'s L1/L2 architecture transition. For the L1 period (before March 26, 2025): Calculate base fees by multiplying `gas_used` from transactions with `base_fee_per_gas` from the corresponding blocks, joined by block number and timestamp. For the L2 period (after March 26, 2025): Calculate gas fees by multiplying `gas_price` with `gas_used` and dividing by 10^18 for proper decimal conversion. The system handles fee currency by defaulting to the Celo L1 (legacy) token address when `fee_currency` is null. All token-denominated fees are converted to USD using end-of-day price feeds and appropriate decimal corrections.
- **Key fields**: `gas_used` for gas consumption, `base_fee_per_gas` from blocks for L1 fees, `gas_price` and `effective_gas_price` for L2 fees, `fee_currency` for token identification, `token_address` for price conversion

### Final aggregation
- **Combining components**: The daily active user counts and daily revenue amounts are aggregated separately by day, then the ARPU macro divides total daily revenue by total daily active users for each date
- **Currency conversion**: All token-denominated fees are converted to USD using end-of-day price feeds, with proper decimal adjustments applied during the conversion process
- **Time aggregation**: Both revenue and user data are aggregated to daily boundaries using timestamp truncation, ensuring consistent temporal alignment between numerator and denominator
- **Final calculation**: ARPU equals daily revenue in USD divided by daily active users, with a zero-filling strategy applied to handle dates with missing data points, ensuring continuous time series data

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

CeloCELO

Average revenue per user (ARPU)

Average revenue per user (ARPU)

Competitive landscape