Definition ∞ On-chain revenue refers to the economic value generated directly by activity occurring on a blockchain network. This typically includes transaction fees paid to validators or miners, protocol fees collected by decentralized applications, or earnings from staking and liquidity provision. It represents the intrinsic financial output derived from the operation and usage of a decentralized system. This metric indicates a protocol’s economic viability.
Context ∞ News reports frequently analyze on-chain revenue as a key indicator of a blockchain protocol’s health and utility, particularly in the decentralized finance (DeFi) sector. These reports help assess the organic demand for a network’s services and its ability to sustain its operations and reward participants. Understanding on-chain revenue is essential for evaluating the fundamental value and long-term prospects of digital asset projects.
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