Solana Foundation Chair Advocates for Revenue as Key Metric in Crypto

According to Foresight News, Solana Foundation Chair Lily Liu has suggested that it is time to consider revenue as the primary metric for evaluating protocols. Liu noted that when the DeFi phenomenon emerged in 2020, Total Value Locked (TVL) was a useful standard for normalizing across DeFi protocols. In a rapidly growing environment, focusing on early-stage metrics was logical, similar to how the internet took a decade to use clicks and user numbers as upstream indicators for revenue valuation. Revenue was then scaled through two main business models: search and social advertising monetization, and commissions from bilateral markets. However, since 2020, the cryptocurrency industry has matured, and with the presence of revenue, industry metrics must evolve accordingly. Solana applications generated $193 million in revenue in August.