The crisis of the first-layer token under inflationary pressure... Only TRON proves profitability

According to a recent report by Kaiko Research, the valuation of Layer 1 tokens is being shaken by inflationary pressures. The analysis indicates that major blockchains like Ethereum (ETH) and Solana (SOL) are not profitable, and high inflation costs are further exacerbating these losses.

Using 2025 as a benchmark, Ethereum is projected to incur a loss of $1.62 billion, while Solana faces a net loss of $4.15 billion. In contrast, TRON (TRX) is the only Layer 1 protocol to achieve profitability, generating $624 million in revenue. The report attributes this mainly to its revenue model, which tracks actual usage. Hyperliquid (HYPE), through a revenue-based validator payment system, has achieved a price-to-earnings ratio (P/E) of 9.43, demonstrating its structural profitability.

The report also notes that after the Dencun upgrade, Ethereum’s revenue plummeted from $25 million daily to $1 million—a 98% drop—and attributes this mainly to the conversion of Blob fees on Layer 2 networks. This led to a sharp decrease in fees burned, which in turn increased Ethereum’s annual inflation rate and caused ongoing losses.

The report concludes that most blockchains operate in a structurally unprofitable state from the perspective of token holders, which is not a temporary crisis but a fundamental issue. Against this backdrop, TRON’s sustainable profit model driven by real-world applications and token deflation has garnered attention, while Hyperliquid offers an alternative economic model through a non-inflationary revenue structure.

This analysis indicates that as the cryptocurrency market matures, it will rely less on narrative-driven speculation and more on actual profitability and sustainability.