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Are DeFi Platforms Over 300X More Profitable Than Amazon?
Critics claim crypto is not a viable business model. Meanwhile, DeFi platforms and protocols are generating massive revenue and profits. Here’s how I compared the traditional model with the decentralized model.
In February 2022, Amazon Marketplace represented 25% of all online sales. According to TheStreet.com, "Amazon is so dominant that Marketplace Pulse reports that it would take combining the next five mass-market retailers, Walmart, eBay, Apple, The Home Depot and Target, to equal its size."
In May 1997, Amazon went public and had a $438 million market capitalization. By 1999, the market cap skyrocketed up to $30 billion. However, after the internet bubble burst two years later, Amazon's market cap sunk to $2.25 billion. Today, Amazon's market capitalization rests 50% below its all-time high last year of over $1.7 trillion.
Amazon's explosive growth has primarily been attributed to its massive scaling. In 2001, Amazon had 25 million annual users. Today, it has 310 million users worldwide. In its most recent quarterly earnings report, Amazon earned $11.32 billion in income over the prior 12 months. If we divide the 310 million customers by its $11.32…
