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CAKE 
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EDGE 
MET Token holders 'earnings remained stable, with on-chain fee income falling by 33%
According to the latest analysis from 1kx Network, on-chain fee income fell sharply in the second quarter of this year, down 33% from the same period in 2024. Despite the decline in revenue, the earnings of token holders remained largely unchanged, a finding that highlights the growing influence of specific token-economics policies in decentralized finance.
Revenue decline in key areas
Analysis shows that revenue decline in various areas is uneven. Fee income generated by decentralized exchanges (DEX) decreased by $625 million, a year-on-year decrease of 57%. Among them, Meteora (MET), Raydium (RAY) and PancakeSwap (CAKE) were the main contributors to the decline. Fee revenue from token launch platforms also fell by a similar 57%, with Pump.fun (PUMP) accounting for about half of the total decline.
Highlights: Perpetual contracts and forecasting markets
Not all areas have suffered losses. During the same period, fee income in the perpetual contract and forecast markets instead increased. This growth is driven by platforms such as EdgeX (EDGE) and Hyperliquid (HYPE). Notably, prediction market platform Polymarket generated approximately $100 million in fees alone in the second quarter, highlighting the shift in user activity towards event-driven transactions.
Why token holder earnings remain stable
The most eye-catching finding in the 1kx Network report was the resilience of token holders 'fee income. Although overall network fees fell, earnings for token holders remained almost unchanged. Analysts believe that this stability is mainly due to Hyperliquid's token repurchase and destruction policy. This policy effectively reduces the circulation supply of tokens, thereby maintaining or even increasing the value of the holder's earnings while total income declines.
Impact on investors and agreements
This divergence between fee income and token holder earnings on the chain has important implications. For investors, this means that the value of a token is not only related to the platform's total revenue, but is also deeply influenced by its specific token economic model. For the agreement, these data reinforce the importance of designing sustainable fee allocation and repurchase mechanisms to withstand market downturns.
Conclusion
1kx Network's second-quarter data paints a complex DeFi picture. Although fee revenue is under pressure across the chain, strategic token economics-especially repurchase and destruction policies-can provide a cushion for token holders. As markets continue to mature, the design of these mechanisms is likely to become a key differentiator for platforms to attract and retain long-term capital.
Frequently Asked Questions
Q1: Why did chain fee income drop by 33% in the second quarter?
This was mainly due to a 57% drop in fee revenue from decentralized exchanges and token launch platforms, with significant declines for major platforms such as Meteora, Raydium and PancakeSwap. Changes in overall market conditions and user activity combined to contribute to this decline.
Q2: How can token holders 'earnings remain stable when fees are reduced?
The main reason is Hyperliquid's effective token repurchase and destruction policy. By reducing the number of tokens in circulation, the policy maintains the value of the holder's earnings even as total revenue declines.
Q3: In which areas have fee income increased?
Perpetual contract and forecasting markets bucked the trend and achieved higher fee income. EdgeX and Hyperliquid lead the way in perpetual contracts, while Polymarket forecast that the market alone generated approximately $100 million in fees in the second quarter.
