DeFi Sector Sees 38% Surge as US Policy Shift Unlocks Revenue Capture

The DeFi sector has seen significant growth since August 17, rising nearly 38% as investors reassess how US crypto policy may affect protocol revenue and token value.

According to SoSoValue, this rally is moving the DeFi market closer to a point where fees, buybacks, and on-chain activity play a larger role in determining token valuations.

This growth comes alongside Bitcoin and Ethereum's recovery and broader short covering, but SoSoValue argues that investors are also reevaluating whether mature DeFi protocols can return more revenue to their tokenholders.

The issue of protocol revenue distribution has limited DeFi valuations for years. Protocols have generated substantial trading fees, lending income, and other revenue while tokenholders had little direct claim on those economics.