Creators create and sell NFTs on Zora. They receive a cut of the primary sales (supply-side fees).

Zora is a non-custodial NFT minting protocol built on Ethereum and launched in 2021.

Team and investors own and govern the protocol. They currently take a cut the primary sales paid by collectors (revenue).

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NFT marketplaces

Zora

# Zora Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the daily revenue generated per active user on the Zora NFT marketplace. 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, where revenue includes all fees collected by Zora from NFT minting activities across multiple fee structures and blockchain networks.

## 2. Data sources

The calculation uses the following raw data sources:
- **Blockchain events**: Parsed Zora contract events from Ethereum, Optimism, and Base networks including `Sale`, `Purchased`, `CreatedDrop`, `SetupNewContract`, and `MintFeePayout` events
- **Transaction data**: NFT minting transactions and marketplace interactions across the three supported chains
- **External data**: End-of-day ETH price feeds for USD conversion and WETH token metadata for decimal correction

## 3. Step-by-step calculation

### Component A: Daily active users
- **Purpose**: Count distinct users interacting with Zora's NFT marketplace daily
- **Logic**: Extract user addresses from Zora marketplace events across Ethereum, Optimism, and Base chains. Identify two user types: Minters (from `Sale` and `Purchased` events using `to` and `sender` addresses) and Drop Creators (from `CreatedDrop` and `SetupNewContract` events using `creator` addresses). Group by day and count distinct users using HyperLogLog aggregation to handle large datasets efficiently. Create breakdowns by chain, user type, and product dimensions.
- **Key fields**: `user_address` extracted from event parameters, `block_timestamp` for daily grouping, `user_type` classification as Minter or Drop Creator

### Component B: Daily revenue
- **Purpose**: Calculate total fees collected by Zora from NFT minting activities
- **Logic**: Combine revenue from three distinct sources based on NFT type and business model version. For new ERC721 tokens, use direct `amount` values from `MintFeePayout` events. For ERC1155 tokens, multiply `mint_count` by fixed fee of 0.000777 ETH per mint from `Purchased` events. For legacy ERC721 tokens (identified by absence of corresponding `MintFeePayout` events), calculate 5% of total mint amount from `Sale` events. Convert all ETH amounts to USD using end-of-day price feeds and correct for token decimals.
- **Key fields**: `amount` from fee payout events, `mint_count` and `value` from mint events, `pricePerToken` and `quantity` for calculating mint values

### Final aggregation
- **Combining components**: Join daily revenue totals with daily active user counts by date and dimension breakdowns
- **Currency conversion**: Convert ETH amounts to USD using end-of-day exchange rates, applying 18-decimal correction for Wei denomination
- **Time aggregation**: Group all events by day using timestamp truncation, ensuring consistent daily boundaries across chains
- **Final calculation**: Divide total daily revenue (in USD) by total daily active users to produce ARPU in USD per user per day. Apply zero-filling strategy for days with no activity to maintain continuous time series.

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

ZoraZORA

Average revenue per user (ARPU)

Average revenue per user (ARPU)

Competitive landscape