AI truly holds the revenue arteries of the cryptocurrency industry - DEX exchanges and stablecoins are making a difference

The latest figures on the cryptocurrency industry revenue in 2025 show a profound shift: protocols not only generate significant revenue, but the way they make money is also rapidly changing. Thanks to DEXs and other emerging technologies, the industry has started to profit from entirely different sources than before. The question is no longer “Does the crypto industry make money?”, but rather “Where does that money come from, and who actually holds it?”.

Industry revenue doubles - But new DEXs are the game changers

In 2025, cryptocurrency protocols generated over $16 billion in revenue, more than doubling the $8 billion in 2024. This growth clearly demonstrates the industry’s ability to capture value. However, these numbers only tell part of the story. Behind the growth charts, DEXs and other technologies are gradually transforming the face of the crypto industry.

Among these profits, stablecoin issuers still hold a dominant position, accounting for over 60% of total industry revenue. Tether and Circle, two giants in this field, tightly control the main profit sources. Their market share slightly decreased from 65% in 2024 to 60% in 2025, but this still indicates a very strong dominance.

However, the emergence of perpetual DEX platforms—especially platforms like Hyperliquid, EdgeX, Lighter, and Axiom—has created a completely new situation. These four platforms together account for 7% to 8% of total industry revenue, far exceeding the total revenue of protocols in mature DeFi sectors such as lending, staking, bridges, and decentralized trading aggregation. This means DEXs are no longer small players in the ecosystem but are now key factors capable of changing the entire game.

Why do DEXs generate continuous trading fees and higher profitability than expected

Perpetual DEXs operate differently from traditional trading platforms. Instead of requiring users to understand blockchain and smart contracts, these platforms offer a familiar experience—just like centralized exchanges users already know. But behind this simplicity lies a complex technological system.

To succeed, a DEX must build a stable interface that doesn’t crash under high load, create reliable order matching and liquidation systems, and provide sufficient liquidity depth to meet traders’ needs. Liquidity is key: those who can provide enough liquidity sustainably will attract the most trading activity.

Hyperliquid dominates this segment thanks to abundant liquidity supplied by the largest number of market makers on the platform. This has helped it become the DEX with the highest fee income in 10 out of 12 months in 2025. But why can DEXs generate continuous revenue?

The key difference lies in trading frequency. Users can execute trades continuously, at high frequency, without needing to convert their underlying assets. Even when the market is sideways, they can hedge risks, use leverage, arbitrage, adjust positions, or build positions early. Each of these actions generates small fees, but with enormous trading volume, these small fees add up to huge revenue streams.

Three factors influencing cash flow in the crypto industry

To better understand why industry revenue has this structure, we need to analyze three main factors shaping the revenue landscape:

First: Profit margins from holding assets

Stablecoin issuers generate revenue by holding real asset reserves (USD, U.S. Treasury bonds) and earning interest from them. This model is structured: each stablecoin issued is backed by real assets and yields corresponding interest. However, this model is also vulnerable because it depends on the Federal Reserve’s interest rates. As interest rates decline in the coming years, stablecoin issuers’ revenue will be affected.

Second: The transaction execution layer—where DEXs thrive

This is the area where perpetual DEXs are making a difference. These platforms provide low-slippage trading venues, allowing users to enter and exit positions as needed. DEXs do not require ownership of any assets but generate revenue by charging fees on each trade. With high trading frequency, this revenue source becomes extremely powerful.

Third: Distribution channels

Token issuance platforms like pump.fun and LetsBonk do not own any meme coin assets, but they have become popular venues for issuing crypto assets. By creating frictionless experiences, automating listing processes, and providing full liquidity, they earn fees from each token issued. This is a Web2 model applied to crypto: Airbnb and Amazon do not own assets but make money from vast distribution channels.

Token holders increasingly share in revenue streams

A significant change is happening: token holders now not only hold governance tokens but also have real economic ownership of the protocol. Protocols are beginning to experiment with redistributing fees back to the community through staking rewards, fee sharing, token buybacks, and burns.

In 2025, the total fees paid by users to DeFi protocols amounted to approximately $30.3 billion. Of this, the revenue retained by protocols after paying liquidity providers was about $17.6 billion. Around $3.36 billion was returned to token holders via staking rewards, fee sharing, buybacks, and burns. This means 58% of fees have been converted into protocol revenue, with the rest going to the community.

This is a significant shift from previous cycles. This transition creates tangible incentives for investors to continue holding and buying more tokens they trust.

2026: The year DEXs may surpass stablecoin dominance

Looking ahead to 2026, two questions could determine the industry’s trajectory:

As interest rates continue to decline, will the market share of stablecoin issuers’ revenue fall below 60%? This would signal that DEXs are gradually eroding stablecoins’ dominance.

As the structure of the transaction execution layer becomes more concentrated (due to a few platforms gaining an advantage), can DEXs surpass the current 8% market share? If so, DEXs will not just be a growing segment but a true balancing force alongside stablecoins.

The balance of power between stablecoins, DEXs, and other segments will continue to shape how revenue is distributed in the crypto industry. What we see today is just the beginning of a long-term transformation.