Uniswap, Aave lead DeFi fee rebound to $600 million as protocols embrace buybacks and fundamentals
Quick Take While buybacks and revenue sharing draw functions similar to traditional finance, it remains important to distinguish crypto tokens from equity securities. The following is excerpted from The Block’s Data and Insights newsletter.
DeFi protocols generated approximately $600 million in fees during September, marking a recovery from the 12-month low of $340 million recorded in March. This represents a 76% increase over six months, with established players like Uniswap, Aave, and Ethena leading fee generation.
The rebound in fee revenue coincides with a broader shift in how protocols are approaching tokenomics, moving away from the memeability and virality narratives that dominated late 2024 toward more traditional financial metrics.
The adoption of buyback programs can be seen as an effort by protocols to align with metrics familiar to traditional investors as institutional participation in crypto markets continues to grow.
Other projects, including Ethena, Ether.fi, and Maple, are piloting similar value-accrual mechanisms for their native tokens as buyback proposal passes among tokenholders, suggesting this trend is becoming more widespread across DeFi. This marks a contrast from the narratives prevalent at the end of 2024, when attention focused more on memes with viral marketing and community engagement rather than fundamental revenue generation.
While buybacks and revenue sharing draw functions similar to traditional finance, it remains important to distinguish crypto tokens from equity securities. Tokens serve various functions beyond value accrual, including governance rights, protocol access, and network utility. As more protocols adopt revenue-based tokenomics, the market may be entering a phase where fundamental metrics play a larger role in valuation compared to previous cycles.
This is an excerpt from The Block's Data & Insights newsletter . Dig into the numbers making up the industry's most thought-provoking trends.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitcoin News Update: Tether's Mining Venture in Uruguay Falters Due to High Energy Expenses and Regulatory Challenges
- Tether halts Uruguay Bitcoin mining due to rising energy costs and regulatory hurdles. - The $500M project led to $100M+ spent and 30 layoffs amid unsustainable costs. - The failure highlights crypto mining risks in regions with unstable energy pricing. - Tether shifts focus to Paraguay/El Salvador as industry migrates to cheaper energy. - S&P downgrades USDT stability, warning of undercollateralization risks from Bitcoin exposure.

The ChainOpera AI Token Collapse: A Cautionary Tale for Cryptocurrency Initiatives Powered by AI
- ChainOpera AI (COAI) token's 96% collapse in late 2025 exposed systemic risks in AI-integrated blockchain ecosystems, warning investors about conflating innovation with stability. - Hyper-centralized governance (87.9% supply controlled by 10 wallets) and opaque "black box" AI models triggered liquidity crises and panic selling, eroding trust. - Regulatory ambiguities from U.S. CLARITY/GENIUS Acts and speculative hype (96% 24h surge) amplified volatility, as 80% locked supply posed future sell-off risks.

Behavioral Economics and Protecting Investors in Developing Cryptocurrency Markets
- COAI token's 2025 collapse erased $116.8M due to centralized control, unstable AI algorithms, and regulatory ambiguity. - Behavioral biases like overconfidence and herd mentality amplified risks, creating panic-driven feedback loops during the crisis. - Investors are advised to prioritize transparent audits, diversify across vetted projects, and leverage real-time fraud detection tools. - Regulatory frameworks like EU's MiCA and psychological discipline are critical to mitigate systemic and behavioral ri

This week, the US spot Ethereum ETF saw a net inflow of $368 million.
