Crypto Revenue Falls Short of Token Value Amid High Emissions

Crypto protocols have generated significant revenue since the start of 2026, but many protocol tokens are still underperforming. According to Castle Labs, crypto protocols earned $7.42 billion in cumulative revenue during this period. However, despite these figures, many protocol tokens continue to lag behind their fundamental value.

The report highlights that investors are increasingly evaluating crypto projects like traditional businesses, focusing on revenue, token economics, and how value reaches holders. Castle Labs examined six major protocols and found that revenue came from different business models, including fees from perpetual trading, borrower interest spreads, and collateralized loans.

However, the report notes that revenue alone does not determine whether a token performs well. Investors also need to examine whether revenue is sustainable over time and how much of it actually reaches token holders. Token emissions are a major reason for weak token performance, with protocols such as Aerodrome, Sky, and Uniswap showing negative net token flows.

Castle Labs recommends that investors evaluate four core questions before buying any token: how the protocol earns revenue, how that revenue is distributed, how much value is lost through emissions and unlocks, and whether equity holders receive stronger economic rights than token holders. The report also notes that buybacks help token value but are not a cure for poor tokenomics or weakening fundamentals.