DeFi slowdown worsens, but protocols with revenue and fee sharing could thrive

It's too early to tell if DeFi is 'dead', but platforms that share revenue with liquidity providers and holders of tokens could be the ones that survive the bear market.

Market news

Right now, liquidity is hard to come by, but traders and crypto protocols still need inflow and revenue to stay functional.

As the crypto winter drags on, savvy crypto investors have realized that one of the reliable sources of passive income that still exists can be found on protocols that generate revenue and share some of it with their communities respective.

Platforms that earn real return through usage fees are the clear winners in the bear market, which means perpetuals and options because they are profitable or bullish. This is why #GMX is hot, #snx costs massively, and #eth is a no-brainer.

— Collingwood.lens (@Fraxima1ist) July 13, 2022

Let's take a look at some of the protocols that continue to thrive in the currently down market.

DeFi may be dead, but revenue-generating platforms will thrive

Data from Token Terminal shows that revenue-positive platforms are primarily non-fungible token (NFT) marketplaces like LooksRare and OpenSea.

Top dapps based on cumulative protocol revenue in the last 180 days. Source: Token Terminal

Aside from a few select protocols, including MetaMask, Decentral Games, Axie Infinity, and Ethereum Name Service, the majority of the remaining protocols with the highest revenues are financial platforms decentralized, showing that while DeFi is down, it's not out of the game.

Cost sharing helps attract cash

DeFi protocols and