Castle Labs says protocol revenue has not consistently translated into token value

Castle Labs said in a new report that crypto protocols have generated about $7.42 billion in revenue so far this year, yet token prices have often failed to reflect those fundamentals. The report reviewed six protocols, including Aave, Hyperliquid, PumpFun and Uniswap, and found they produced a combined roughly $726 million in revenue in the first half of 2026. Still, once token issuance, unlocks and incentive programs are taken into account, net value inflows to token holders at some projects turn negative. Castle Labs highlighted that Hyperliquid has burned more than 47 million HYPE tokens, while PUMP has completed over $315 million in buybacks, even as the token remains about 60% below its issuance price. The firm’s conclusion was that protocol revenue alone does not automatically convert into token value, and that investors should also watch value accrual design, token unlock pressure and the underlying rights structure tied to each token.