The cryptocurrency market is experiencing a significant shift from speculative models to investment strategies focused on revenue generation, according to Castle Labs. This transition is marked by a decline in asset prices, persistent outflows from ETF funds, and an increase in project closures, while institutional venture capital investments have become more cautious. Key factors driving this change include a large-scale liquidation event last October and the sustained outperformance of gold over Bitcoin.
Among the approximately 5,700 protocols tracked by DeFiLlama, only 3.5% generated over $100,000 in revenue in the past 30 days, with less than 1% distributing returns to token holders. Notable revenue-generating protocols such as Hyperliquid, Pumpdotfun, Tron, Sky, Jupiter, Aave, and Aerodrome are being evaluated based on their price-to-sales ratios and holder yield performance. This shift highlights the growing importance of protocol revenue and its ability to deliver value to tokens as key metrics for investor evaluation. Additionally, traditional financial institutions like NYSE, Robinhood, BlackRock, and Franklin Templeton are increasingly engaging with the crypto market.
Crypto Market Shifts Focus from Speculation to Revenue and Token Rewards
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