Research Summary
The report analyzes the performance of the Livepeer network, a decentralized video infrastructure marketplace. It highlights the decrease in video transcoding usage and the drop in the price per minute transcoded. The report also discusses the introduction of an AI subnet for video generation capabilities and Livepeer’s participation in the Coalition for Content Provenance and Authenticity (C2PA).
Key Takeaways
Decrease in Video Transcoding Usage
- Drop in Transcoding Usage: The report notes a 22% quarter-on-quarter decrease in the usage of Livepeer’s transcoding network. This decrease is despite the community’s efforts to optimize transcoding costs for users.
Introduction of AI Subnet
- Expansion into AI Video Generation: Livepeer has introduced an AI subnet for video generation capabilities, including text-to-image, text-to-video, and image-to-video. This expansion is expected to increase usage following the mainnet launch scheduled for September 2024.
Financial Performance
- Decrease in Revenue from Transcoding: The report highlights a 38% quarter-on-quarter decrease in Livepeer’s demand-side revenue from transcoding fees. This decrease is attributed to a 21% drop in the price per minute transcoded.
- Growth in Staking Rewards: Despite the decrease in transcoding revenue, staking rewards grew by 64% in USD terms as the LPT issuance increased by 12% quarter-on-quarter.
Participation in C2PA
- Efforts to Combat Deepfakes: Livepeer has joined the Coalition for Content Provenance and Authenticity (C2PA) to help trace the provenance of video content. This move is part of the network’s efforts to combat deepfakes.
Future Developments
- Upcoming Mainnet Launch: The report notes that the mainnet launch of the AI subnet is scheduled for September 2024. This launch is expected to drive further demand for the network’s compute resources and introduce additional revenue streams.
Actionable Insights
- Monitor the Impact of AI Subnet: Stakeholders should keep an eye on the impact of the AI subnet on Livepeer’s performance. The introduction of video generation capabilities could significantly increase usage and revenue.
- Assess the Effect of C2PA Participation: The network’s participation in C2PA could enhance its reputation and attract more users. Stakeholders should assess the effect of this participation on Livepeer’s growth.
- Prepare for Mainnet Launch: Stakeholders should prepare for the mainnet launch of the AI subnet in September 2024. This launch could introduce new opportunities and challenges for the network.
