Livepeer (LPT) is trying to cash in on the growth of streaming video by building a decentralized video-streaming network on the Ethereum (ETH) blockchain.
Streaming video’s popularity is exploding. Nielsen estimates that more Americans were watching streaming video than cable television for the first time in July 2022. To elaborate, 34.8% of US TV viewers were watching streaming video while 34.4% were watching cable in July 2022.
Streaming video is now the most popular form of television in the United States. Nielsen estimates only 21.6% of Americans were watching broadcast TV in July 2022. Impressively, streaming video usage grew by 3.2% between June and July 2022. Additionally, streaming video usage grew by 22.6% between July 2021 and July 2022.
Americans watched 190.9 billion minutes of streaming video content in July 2022, Nielsen claims. That surpassed the 169.9 billion minutes of streaming video contents people watched in April 2020 during the pandemic lockdown.
Streaming Video is Eating the Internet
Hence, the market for streaming video is growing fast. Moreover, Livepeer estimates streaming video eats 80% of internet bandwidth.
Livepeer (LPT) is a protocol that lets developers add live or on-demand video to a project without transcoding. The ultimate goal at Livepeer to increase the reliability of streaming video while reducing its cost by 50%.
To that end, Livepeer is building a peer-to-peer (P2P) infrastructure and marketplace secured by the Ethereum blockchain. In other words, they are trying to build a low-cost decentralized video streaming network on the Ethereum blockchain.
Livepeer wants to help developers build streaming platforms and services at a cheap price through its application programming interface (API). Users will improve and secure the Livepeer network by acquiring and staking Livepeer (LPT). In exchange, stakers will earn Ethereum (ETH) and LPT tokens.
Plus Livepeer wants to create a class of Video Miners who will run Livepeer nodes and transcode video on graphics processors, in exchange for ETH and LPT rewards. Video miners make money by video encoding.
Liverpeer claimed its network had over 70,000 GPUs encoding real-time video-streaming on 19 September 2022. Livepeer also claims its 100 active nodes had earned $299,500 by processing 164.7 million minutes of transcoded video by 19 September 2022.
To become a video miner, a person needs a GPU with video encoding chips, access to affordable bandwidth with good connectivity to major internet providers, and the ability to run a blockchain aware Livepeer node 24 hours a day and seven days a week.
Transcoding is reformatting a raw video file so you can stream it. Transcoding can be expensive. Livepeer estimates it costs around $3 per hour to transcode and $4,500 a month for one media server. Broadcasters can pay up to $1,500 a month before bandwidth for content delivery.
Developers and broadcasters post video encoding jobs on Livepeer’s platform. When video encoding jobs appear, the Livepeer node routes the tasks to video miners’ GPUs.
Hence, I think Livepeer (LPT) could boost NVIDIA (NVDA) stock. To explain, NVIDIA builds graphics processor units and other infrastructure for video streaming.
What Value does Livepeer (LPT) have?
Interest in Livepeer (LPT) is high. It was CoinMarketCap’s ninth-most trending cryptocurrency on 19 September 2022. Livepeer was CoinMarketCap’s 125th largest cryptocurrency on 21 September 2022.
Furthermore, CoinMarketCap gave Livepeer a $9.06 Coin Price, a $223.536 million Market Cap, a Fully Diluted Market Cap of $234.283 million, and a 24-Hour Market Cap of $8.727 million on 21 September 2022. They base those numbers on a Circulating Supply of 24.677 million LPT and 25.867 million LPT.
Conversely, CoinGecko gave Livepeer a $9.01 Coin Price, a $235.090 million Market Cap, a $235.090 Fully Diluted Valuation, and a 24-Hour Trading Volume of $9.432 million on 21 September 2022. They base those numbers on a Circulating Supply of 26.217 million LPT, a Total Supply of 26.217 million LPT, and a Maximum Supply of 26.217 LPT. Livepeer was CoinGecko’s 144th ranked cryptocurrency on 21 September 2022.
So yes, Mr. Market believes Livepeer offers value. If you want an Ethereum token that could make money from a growing business, Livepeer is worth examining. I think Livepeer’s video-streaming solution could make money if it works as advertised.