DeFi tokens rebound by 38%: What has changed?

DeFi is suddenly regaining color. SoSoValue’s $DEFI.ssi crypto index has gained nearly 38% since August 17, rising from 0.3616 to around 0.498 after peaking at 0.511. The rebound in Bitcoin and Ethereum has helped. But investors are also looking at Washington: the new rules envisaged in the United States could allow DeFi protocols to better redistribute their income to their tokens.

DeFi crypto gains nearly 38%

The movement accompanies a broader shift in tone in the United States. The SEC had already launched its Project Crypto to modernize American regulations. The market is now accelerating. The $DEFI.ssi index stood at 0.3616 on August 17. It has since touched .511 before returning to around .498. Cumulative gain: approximately 37.7%.

Bitcoin and Ethereum rebounded over the same period. Repurchases of short positions also participated in the movement. SoSoValue, however, points to another element: the crypto market is starting to reevaluate how DeFi protocols can use their revenue.

For years, some projects have taken in millions of dollars in fees without their tokens benefiting directly.

Distributing this income or repurchasing tokens could bring these assets closer to financial securities in the eyes of American regulators. The teams remained cautious. Washington is starting to change the rules of the game.

Crypto protocol revenues come back to center

The amounts start to count. Over the last 30 days, Uniswap generated around 7.18 million dollars of revenue. PancakeSwap follows with 5.16 million. Jupiter reaches 4.69 million, Aave 4.12 million and Aerodrome 4.11 million.

These are no longer just governance tokens attached to crypto applications. Several protocols are now seeking to directly link their economic activity to their assets.

Hyperliquid uses part of its trading fees to buy HYPE. Uniswap ties certain revenue to the destruction of UNI. Jupiter dedicates 50% of protocol fees to buying back JUP. PancakeSwap also uses a portion of its earnings to buy back and burn CAKE.

Ethena wants to go even further. When USDe reaches the planned supply threshold, the project proposes to use 95% of the net revenues paid to its foundation to buy back ENA. DeFi also seeks to reach more users. Aave, for example, is considering a crypto application bringing together fiat currency, self-custody and lending. The revenue already exists. The change mainly concerns their destination.

Washington has not yet resolved everything

The SEC proposed its new “Regulating Crypto Assets” framework on August 18. The text notably provides for two exemptions allowing certain crypto offers of up to $5 million over four years or $75 million over twelve months, with different obligations.

Above all, it adds a conditional safe harbor mechanism. When a project has completed the essential management efforts it promised to carry out, its token could, under certain conditions, no longer remain associated with an investment contract.

For DeFi, this distinction matters a lot. The proposed CLARITY Act in the Senate also provides protections for certain non-controlling developers, validators, node operators, oracle providers and self-custody software. It also leaves room for rewards related to staking, trading, governance or providing liquidity.

Nothing is completely locked in yet. The SEC’s proposal remains open for comment and the CLARITY Act still must clear the Senate. The sector had already expressed its concerns regarding certain versions of the text. However, the crypto market is not waiting for the process to end. +37.7% since August 17. Millions of dollars in monthly revenue. And tokens that are finally starting to recover some of the activity they represent.