Ethereum DeFi Landscape Reveals 88% of Protocols Generate No Revenue, Highlighting Network Inefficiencies

According to recent data from DeFiLlama cited by Coindesk on July 23, the Ethereum network currently supports 1,271 decentralized finance (DeFi) protocols. However, a significant 88% (1,121) of these projects have failed to generate any revenue over the past month, highlighting challenges in monetization within the ecosystem. Meanwhile, the Solana blockchain hosts 264 protocols, with 75% showing no recent revenue activity, underscoring similar issues in value capture. This widespread inactivity among smart contracts contributes to increased storage overhead and elevates security vulnerabilities, ultimately impacting the economic efficiency of these networks. Such inefficiencies pose obstacles to enhancing the overall user experience and sustainable growth in the DeFi sector.