Why Billion-Dollar Revenues of Crypto Projects Have Not Led to the Growth of Their Tokens
The article investigates why the crypto projects generating billions in revenue have not seen corresponding growth in their native tokens. A report from Castle Labs notes that despite over $7.4 billion in total revenue since early 2026, most tokens have fallen significantly in price. Analysts examined six major protocols (Aave, Aerodrome, Hyperliquid, Pump.fun, Sky, and Uniswap) and found a key issue: the "net token value flow." This metric, calculated as revenue distributed to holders minus new token emissions, is negative for projects like Aerodrome, Sky, and Uniswap. These protocols are issuing more tokens than the profit they return, effectively diluting holder value. Hyperliquid is a notable exception, allocating 100% of its revenue to buybacks, coinciding with a 1400% token surge. In contrast, Pump.fun's token fell 60% post-launch despite high revenue, attributed to rapid token unlocks and poor communication. Ripple Labs was cited as a classic case where company shares doubled while the XRP token fell 45%, highlighting a separation between equity value and token utility. Systemic barriers to token growth include low circulating supply percentages misleading investors, inefficient buyback programs (e.g., Aave's buybacks resulted in losses), and the non-binding, cancellable nature of most buyback initiatives.
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