DeFi activities in March 2019 led most projects to lower their income by over 50% compared to February. Onchain blockchain networks across various platforms showed weaker performance, which caused this revenue change.
Cross-Chain Revenue Collapse
All important blockchain networks saw important revenue decreases in their March reports.
Solana Ecosystem
In March, the three DeFi protocols Pump.fun, Jito, and Raydium running on Solana earned $42 million combined. This represents the total Solana-based DeFi revenue, which dropped by half compared to February The total earnings decreased by 75% compared to January’s highest levels
BNB Chain
PancakeSwap, the DeFi leader on BNB Chain, recorded a 54% drop in revenue to $21 million during March 2022.
Ethereum Ecosystem
The combined Ethereum-based DeFi protocols Ethena, Lido, Aave, Curve, Compound, and Sushi made just $24.5 million through their services during March. This represents:
- A 52% decrease from February
The total activity fell by 65 percent as January became the reference point.
The MakerDAO Exception
The analysis showed MakerDAO as the sole significant DeFi protocol that increased its earnings while others in the review declined. The protocol made $10 million in March because its earnings rose 11 percent compared to last month.
MakerDAO’s safer economic system, combined with its diverse revenue sources, helps the organization more effectively withstand market downturns.
Revenue problems clearly showed up through token performance.
The latest revenue changes have negatively affected DeFi tokens‘ performance. The DeFi Index (GMDEFI) token prices managed by GMCI have decreased by 40% since the beginning of the year.
Market Outlook
The main revenue drop results from decreasing blockchain network transactions and reduced trading actions against all major blockchains. The market experienced highly active levels in January, so the drop marks a return to sustainable growth.
Users of cryptocurrency protocols and investors must evaluate if core DeFi business practices remain viable during market underperformance. MakerDAO stands out because its multiple income sources and solid fundamental benefits help it survive market weakness.
During the market’s consolidation stage, the DeFi sector learns and grows to reach better results for future periods.
This evaluation uses information from The Block’s Data and Insights newsletter.
