# Tensor Protocol Secures New Growth Momentum Through Partnership with Vector.Fun

Tensor Protocol ($TNSR), primarily known for its NFT trading platform, is gaining market attention through a new growth initiative in collaboration with Vector.Fun. According to Blockworks, the Tensor Foundation has decided to allocate 50% of Vector.Fun’s net profits to Tensor Protocol. This strategic move marks a significant diversification from traditional NFT exchange revenue models into the burgeoning market of social trading.

## Expansion from NFT Market to Social Trading

Tensor Protocol’s primary revenue stream was the Tensor NFT Marketplace, which held the position as the leading NFT marketplace on Solana. It generated an annual revenue of approximately $2.5 million based on a 30-day average of trading volume. However, post-2024, a drastic decline in NFT trading volume caused Tensor’s market share to dwindle. Compared to competitors such as Magic Eden and Blur, Tensor’s revenue model appeared increasingly vulnerable.

In response, the Tensor team announced an expansion into social trading with the platform Vector.Fun. Blockworks suggests that this strategic pivot could lead to a substantial revaluation of TNSR tokens, presenting significant growth potential for Tensor Protocol.

## Rapid Growth of Vector.Fun and Its Potential in Memecoin Social Trading

Vector.Fun is currently among the fastest-growing social trading platforms in the cryptocurrency space, with a particular focus on memecoins within the Solana and Base networks. Utilizing unique social features and a gamified interface, Vector.Fun targets the existing market of Telegram-based trading bots.

Despite operating on an invite-only basis, Vector.Fun recorded approximately $324 million in trading volume over the past 30 days. The daily average trading volume exceeded $10 million, with platform revenues accruing from a 1.1% transaction fee, half of which is allocated to Tensor Protocol, thus directly benefiting TNSR holders.

Vector.Fun differentiates itself from traditional Telegram trading bots through several strategic features:
– **Demon Mode:** Specializes in the real-time trading of rapidly fluctuating memecoin assets.
– **Broadcast Trading System:** Allows users to share their trades and earn a portion of the follower fee, fostering an active trading community.
– **Trading Leaderboard:** Displays real-time profit and loss (PNL) and trading volume rankings, encouraging user competition and engagement.

These social trading elements are expected to play a crucial role in attracting users from the traditional Telegram trading bot market. Blockworks notes, “While Vector.Fun currently operates on an invite-only basis, opening it to the general public could significantly amplify its growth potential.”

## Revenue Model Synergy and the Future of TNSR

Vector.Fun’s revenue-sharing structure benefits both users and the protocol. Approximately 30% of transaction fees are paid out as referral rewards and broadcast fees to users, while 50% is allocated to Tensor Protocol. Consequently, around 35% of Vector.Fun’s total revenue is distributed to TNSR token holders.

According to Blockworks, even in the worst-case scenario, Vector.Fun’s revenue could increase TNSR’s total annual income by over sixfold, up to approximately $150 million. Blockworks emphasized, “Tensor Protocol, which has been struggling with decreased NFT market trading volumes, has the potential for revaluation through Vector.Fun’s profit-sharing mechanism.”

However, there are concerns regarding supply pressures facing TNSR tokens. By March 10, 2025, 120 million TNSR tokens are scheduled for unlock, representing a significant proportion of the total circulating supply, which could exert downward pressure on the market. Additionally, Vector.Fun’s success is heavily reliant on the memecoin trading environment, which could be adversely affected if market conditions stall, potentially hindering user growth and revenue expansion.

Blockworks concluded that Tensor Protocol has secured new growth opportunities by collaborating with Vector.Fun, transcending its traditional NFT exchange model. Vector.Fun’s social trading features and user-centric strategies have the potential to attract a new user base by disrupting the existing market framework.

Nevertheless, strategic measures are essential to address supply pressures from large-scale token unlocks. The expansion and user base growth of Vector.Fun will be crucial determinants of TNSR’s future. Market focus is expected to intensify on Tensor Protocol’s capability to realize the growth potentials within the social trading sector.