Digital asset manager Grayscale has published a new report ranking the top 10 crypto assets by tokenholder yield and adjusted earnings yield, revealing that Hyperliquid (HYPE) delivers the highest tokenholder return at 8.0% while PancakeSwap (CAKE) leads adjusted earnings yield at 14.4%.
Discrepancies in Tokenholder Yield and Dilution
Grayscale calculates tokenholder yield by summing staking rewards and buybacks, then subtracting the value of newly issued tokens. According to the report, Hyperliquid (HYPE) tops this list at 8.0%, closely followed by Lighter (LIT) at 7.9% and PancakeSwap (CAKE) at 2.6%. The remaining top ten assets for tokenholder yield include Aerodrome (AERO), Uniswap (UNI), Raydium (RAY), Pendle (PENDLE), and Aave (AAVE).
However, the data reveals that half of the top ten tokens actually feature negative tokenholder yields. Jupiter (JUP) sits at -2.6%, while Curve Finance (CRV) ranks at the bottom with -5.5%. This dynamic occurs because token issuance and dilution outweigh the protocol's distributed earnings and buyback benefits, reducing net returns for holders despite underlying protocol usage.
Valuing Protocols via Cash Flows and Earnings Yield
Grayscale's second metric, adjusted earnings yield, evaluates protocol fee generation relative to market capitalization. Under this ranking, PancakeSwap (CAKE) leads at 14.4%, followed by Lighter (LIT) at 14.1% and Hyperliquid (HYPE) at 9.8%. The list is rounded out by Raydium (RAY), Aave (AAVE), Jupiter (JUP) at 3.5%, Sky (SKY), Uniswap (UNI), Aerodrome (AERO), and Pendle (PENDLE).
The research highlights stark contrasts: while Jupiter (JUP) generates a positive 3.5% adjusted earnings yield, its tokenholder yield remains negative at -2.6%. Grayscale Head of Research Zach Pandl explained that while Bitcoin functions similarly to digital gold, alternative crypto assets can be valued like stocks based on cash flows. "Crypto valuations don't have to rely on narratives alone," Pandl stated, emphasizing that buybacks and token burns help transfer revenue to holders only when not offset by high inflation schedules.
Key Takeaways
- Hyperliquid (HYPE) ranks highest in tokenholder yield at 8.0%, with Lighter (LIT) right behind at 7.9%.
- PancakeSwap (CAKE) posts the top adjusted earnings yield at 14.4%, followed by LIT at 14.1% and HYPE at 9.8%.
- Five of the top 10 tokenholder yield assets record negative net returns, led downward by Jupiter (JUP) at -2.6% and Curve Finance (CRV) at -5.5% due to token dilution.
Why It Matters
Grayscale's framework provides institutional investors with a standardized model to evaluate decentralized protocols using traditional equity metrics like cash flow and yield. By separating gross protocol earnings from net holder returns, the report exposes how aggressive token emissions erode value for long-term investors even within highly profitable decentralized exchanges. As the market matures, market participants will likely demand greater transparency around issuance schedules and capital allocation policies to ensure protocol revenues translate directly into tokenholder value.
