DeFi Revenues Decline Sharply in March Amid Reduced On-Chain Activity

2025-04-06
DeFi Revenues Decline Sharply in March Amid Reduced On-Chain Activity

The decentralized finance (DeFi) sector experienced significant revenue declines in March 2025, driven by decreased user activity and lower transaction volumes across major blockchains such as Ethereum, Solana, and BNB Chain. While most protocols faced steep declines, a select few showed resilience amidst the broader downturn.

Key Takeaways:

  • Major DeFi protocols on Ethereum, Solana, and BNB Chain saw over 50% revenue declines in March.
  • Reduced trading activity and lower on-chain usage contributed to the revenue slump.
  • MakerDAO (now known as Sky) stood out with a positive revenue increase of 11%.

Major Protocols Face Significant Revenue Declines

In March, DeFi platforms across several blockchains witnessed a sharp revenue drop, reflecting waning user engagement and lower trading volumes:

  • Solana: Protocols such as Pump.fun, Jito, and Raydium collectively generated approximately $42 million, representing a 55% reduction from February and a 75% drop from January highs.
  • BNB Chain: PancakeSwap's March revenue plunged to $21 million, marking a 54% decline month-over-month.
  • Ethereum: Prominent Ethereum-based platforms including Ethena, Lido, Aave, Curve, Compound, and Sushi cumulatively reported revenues of about $24.5 million, a decrease exceeding 52% from February.

Read more about Solana (SOL):

Solana (SOL), Market Cap, Price Today & Chart History

Solana (SOL) Price Today

How to buy Solana (SOL)

SOL to USD: Convert Solana to US Dollar

How to Stake Solana (SOL)

Trade Solana Futures

MakerDAO Bucks the Trend

Contrary to the broader downturn, MakerDAO (now known as Sky) was an outlier, registering an 11% increase in revenue during March. Generating $10 million in fees, MakerDAO demonstrated resilience, highlighting its unique value proposition within the struggling DeFi sector.

DeFi Tokens Under Pressure

Source: The Block

The significant drop in DeFi revenue coincided with a broader downward trend in DeFi token valuations. GMCI's GMDEFI Index, encompassing leading DeFi projects like Uniswap, Aave, Jupiter, Ethena, Maker, and PancakeSwap, reported a substantial 40% decline year-to-date.

Factors Behind the Revenue Decline

Several factors contributed to the widespread downturn in DeFi revenues, including:

  • Reduced Trading Volume: General market sentiment and reduced speculative activity impacted DeFi platform usage.
  • Lower On-Chain Activity: A decrease in overall blockchain transactions contributed directly to reduced protocol earnings.
  • Market Uncertainty: Broader financial market volatility and regulatory uncertainties have also deterred active participation.

Outlook: Can DeFi Recover?

Despite March’s challenging environment, long-term prospects for DeFi remain promising. Protocols emphasizing sustainability, innovation, and user-centric features are well-positioned for future recovery. Continued investment in blockchain infrastructure and regulatory clarity will play key roles in restoring investor confidence and activity.

FAQs:

Why did DeFi revenues drop significantly in March?

The sharp drop in DeFi revenues was driven primarily by decreased trading volume and lower on-chain activity across Ethereum, Solana, and BNB Chain.

Which DeFi protocol experienced revenue growth?

MakerDAO (Sky) uniquely saw revenue growth, rising 11% in March despite broader market declines.

What is the future outlook for DeFi?

Long-term prospects remain positive, with recovery contingent upon improved market conditions, innovation, and regulatory developments.

Disclaimer: The content of this article does not constitute financial or investment advice.

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