The 26-year-old, from Aldershot, started off making videos of himself playing Minecraft and Pokemon.
He’s got more than 16 million subscribers and has had more than 10 billion views of all his videos.
The YouTuber, whose real name is Dan Middleton, did not feature in the top ten list last year.
Here’s the list in full
1 Daniel Middleton $16.5m (£12.3m)
Image captionDanTDM used to be called The Diamond Minecart
2 Evan Fong (VanossGaming) – $15.5m (£11.6m)
Image captionEvan Fong is another gamer who is a newcomer to the list
3 Dude Perfect – $14m (£10.5m)
Image captionWith 24 million subscribers, Dude Perfect is a group of ex-high school basketball players who do sport-related stunts and tricks
4 Markiplier – $12.5m (£9.3m)
Image captionReal name Mark Fischbach, gamer Markiplier rises three places this year
4 Logan Paul – $12.5m (£9.3m)
Image caption22-year-old Logan made his name as a Vine star before migrating to YouTube
6 PewDiePie – $12m (£9m)
Image captionPewDiePie, aka Felix Kjellberg, is still the YouTuber with the most subscribers
7 Jake Paul – $11.5m (£8.6m)
Image captionJake Paul is two years younger than – and two places below – his brother Logan
8 Ryan ToysReview – $11m (£8.2m)
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Ryan’s channel consists of him opening toys and reviewing them. Ryan is six-years-old.
8 Smosh – $11m (£8.2m)
Image captionIan Hecox is now the only member of comedy channel Smosh, after his collaborator Daniel Padilla left in June
10 Lilly Singh – $10.5m (£7.8m)
Image captionLilly Singh drops from third in last year’s list.