Tiger Research: 99% of Web3 Projects Fail to Generate Revenue, Signaling Market Structure Flaw

VADODARA, January 12, 2026 — A new report from Asian Web3 research firm Tiger Research reveals that 99% of Web3 projects generate zero revenue, operating in a "zombie state" funded by token sales and investor capital. This daily crypto analysis examines the structural implications for market liquidity and long-term viability, drawing parallels to historical boom-bust cycles. According to the report, only about 200 projects earned at least $0.10 in revenue over the last 30 days, per data from Token Terminal, highlighting a critical failure in project economics.

Market Context & Background

Market structure suggests this mirrors the 2021 ICO bubble, where excessive valuations and flawed fundraising led to widespread project failures. Historical cycles indicate that when 99% of entities lack revenue, it creates a liquidity grab scenario, draining capital from viable assets. The current environment, with Bitcoin at $91,310 and fear sentiment prevailing, resembles pre-correction phases where weak fundamentals precipitated sharp declines. On-chain data from Ethereum.org shows that post-merge issuance adjustments have not mitigated broader tokenomic inefficiencies, exacerbating the revenue gap. Related developments include increased market volatility from Fed policy shifts and whale exits signaling structural weakness.

What Happened?

On January 12, 2026, Tiger Research released a report titled "How Do 99% of Unprofitable Web3 Projects Survive?" The firm, a primary data source for Asian Web3 analytics, concluded that 99% of projects fail to generate even one dollar in revenue. According to the report, these projects spend heavily on marketing and events monthly, covering costs through token sales and investor funds—a structural flaw built on investor sacrifices. Tiger Research attributes this to a deformed industry cycle, including flawed fundraising structures that lead to excessive valuations, pressure to justify those valuations, and founders profiting despite project failure. The report cites Token Terminal metrics, indicating minimal revenue generation across the sector.

Technical Analysis & Price Action

Price action analysis reveals Bitcoin trading at $91,310, with a 24-hour change of 0.87%. Market structure suggests key support at the $90,000 psychological level, aligned with a Fibonacci retracement level from the 2025 high. A break below this support could invalidate bullish momentum, targeting a bearish invalidation level at $85,000. Conversely, bullish invalidation rests at $95,000, where resistance from previous order blocks may cap gains. The RSI hovering near 50 indicates neutral momentum, but volume profile data shows declining participation, typical of fear-driven markets. This setup echoes the 2021 correction, where revenue-less projects collapsed under liquidity pressure.

By The Numbers

Why It Matters

This matters institutionally as it signals a systemic risk: capital allocated to revenue-less projects represents a mispricing of liquidity, potentially triggering broader market corrections. For retail, it highlights the danger of investing in tokens without underlying economic activity, akin to the dot-com bubble's excesses. Market structure suggests that without revenue generation, projects rely on perpetual token inflation, creating a gamma squeeze scenario where supply outstrips demand. Historical cycles confirm that such environments precede consolidation phases, as seen in 2018 and 2021. The Federal Reserve's monetary policy, detailed on FederalReserve.gov, further complicates this by influencing risk asset valuations.

Community Sentiment

Market analysts on X/Twitter describe the report as a "wake-up call," with sentiment leaning bearish due to structural concerns. Bulls argue that innovation cycles naturally include failures, but bears counter that 99% failure rates indicate a deeper liquidity crisis. No specific quotes from individuals like Michael Saylor are available, but overall discourse emphasizes the need for sustainable tokenomics and revenue models.

Price Prediction / Future Outlook

Bullish Case: If projects pivot to revenue-generating models, supported by regulatory clarity and institutional adoption, Bitcoin could reclaim $100,000, with altcoins benefiting from renewed confidence. Bullish invalidation at $95,000 must hold to avoid a retest of lower supports.Bearish Case: Continued revenue failure may lead to a liquidity crunch, pushing Bitcoin below $85,000 and triggering a bear market reminiscent of 2021. Bearish invalidation at $90,000 is critical; a break could accelerate declines.