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The U.S. March unadjusted CPI year-over-year dropped to 2.4%, down from 2.8% last month and below the 2.6% market expectation. While this signals cooling inflation, the market reaction has been muted.
How will this impact the Fed rate cut expectations and the crypto market? Share your thoughts with #CPIDataComing for a chance to win a $50 reward!
Event Time: April 11, 6:00 AM - April 12, 6:00 AM UTC
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DeFi Market Experiences Revenue Drops as On-chain Activity Reduces
The decentralized finance (DeFi) sector witnessed a massive revenue downturn in March 2025. Most of the major protocols across multiple blockchains reported over 50% decline in their revenues
Defi protocols generate their revenue from transaction fees, lending fees, and other service charges. The drop in revenues indicated a decline in on-chain activity, reduced trading volumes, and a decrease in user activity on DeFi platforms
Weak Revenues Hinting at Market Headwinds
A 50% revenue loss might reflect a potential market sentiment shift, which could lead to negative market sentiment and further outflows of capital from the ecosystem.
In March, Solana-based protocols such as Pump.fun, Jito, and Raydium generated approximately $42 million in revenue. The data revealed that March revenue was a 55% drop from February and a 75% decrease from January’s peak.
Meanwhile, BNB Chain’s Pancakeswap generated a revenue of $21 million which marked a decrease of 54% in revenue on a month-over-month basis. The trend was similarly concerning on the Ethereum-based protocols. The platforms such as Ethena, Lido, Aave, Curve, Compound and Sushi collectively generated just $24.5 million of revenue in March. Ethereum-based protocols witnessed a 52% and 65% drop in revenues compared to February and January 2025.
MakerDAO (recently rebranded as Sky) emerged as the only solo performer who witnessed a month-over-month increase in revenues. It generated over $10 million in revenue in March, which is an 11% increase compared to February
The broader implications of this revenue collapse are already visible in DeFi token performance. The GMCI’s GMDEFI index, which tracks tokens from various DeFi projects across multiple chains, is down 40% year-to-date. This significant underperformance highlights growing investor concerns about the sector’s immediate growth prospects as on-chain activity continues to decline.
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