In September, protocols within the decentralized finance sector generated approximately $600 million in fee revenue, marking a 76% increase compared to March’s $340 million.
Leading the pack are Uniswap with $136.04 million in revenue over the past 30 days and Aave with $98.97 million.
Shift in Priorities
The rise in fee revenue is accompanied by a shift in developers’ approach to tokenomics, according to The Block.
While the market at the end of 2024 focused on meme coins, viral marketing, and community engagement, protocols are now moving towards more traditional financial metrics. This shift is driven by the growing involvement of institutional investors.
One notable trend is the adoption of buyback programs, akin to practices in TradFi. These methods aim to increase token value and attract players accustomed to classic financial instruments.
Projects like Ethena, Ether.fi, and Maple are already testing mechanisms to enhance the appeal of their assets. Buyback proposals are gaining support among holders.
Although cryptocurrency tokens bear similarities to TradFi instruments, they are not stocks. Beyond serving as a store of value, such assets participate in governance, provide access to protocols, and find use within the network. This positions them as a cornerstone of the decentralized finance ecosystem.
In August, DeFi protocol fee volumes declined by 24% compared to July.