Grayscale Lists Top 10 Crypto Tokens by Holder Yield and Earnings

Grayscale has disclosed its top 10 lists for tokenholder yield and adjusted earnings yield. Hyperliquid (HYPE) heads the first measure with an 8.0% yield, and PancakeSwap (CAKE) leads the second at 14.4%.

The report posits that many crypto tokens can be appraised through their cash flows, a method not applicable to Bitcoin.

"Crypto valuations don’t have to rely on narratives alone," Grayscale posted. Its top 10 for tokenholder yield are $HYPE, $LIT, $CAKE, $AERO, $UNI, $RAY, $PENDLE, $AAVE, $JUP and $CRV. For adjusted earnings yield the top 10 are $CAKE, $LIT, $HYPE, $RAY, $AAVE, $JUP, $SKY, $UNI, $AERO and $PENDLE.

Which Crypto Tokens Actually Reward Their Holders?

Hyperliquid (HYPE) tops the tokenholder-yield list at 8.0%. Lighter (LIT) is close behind at 7.9%.

Third place is PancakeSwap (CAKE) at 2.6%, with Aerodrome (AERO) and Uniswap (UNI) trailing.

Beyond the leaders, the lists highlight a more worrying trend.

Half of the top 10 tokens show a negative holder yield.

Curve Finance (CRV) posts the weakest reading at -5.5%, and Jupiter (JUP) records -2.6%.

The cause lies in token dilution.

Grayscale determines tokenholder yield by totalling staking rewards and buybacks, then deducting newly issued tokens. If the amount of new tokens exceeds the rewards, holders experience dilution even if the protocol's business is active.

Can Crypto Be Valued Like Stocks?

The adjusted earnings yield ranking presents another interesting finding.

PancakeSwap heads the adjusted earnings yield at 14.4%, with Lighter at 14.1% and HYPE at 9.8%.

Jupiter is a notable case. Its adjusted earnings yield stands at 3.5%, while its tokenholder yield is in negative territory.

A crypto protocol can be profitable without its token being a rewarding asset to hold.

Grayscale's head of research, Zach Pandl, states that Bitcoin acts like digital gold, whereas many other digital assets can be evaluated on the basis of their cash flows.

“Crypto valuations don’t have to rely on narratives alone.”

Earnings for protocols come from trading and lending fees. Buybacks and burns can pass that value along to tokenholders, though issuance of new tokens might cancel out the benefits.

The lists give investors a tool to study the economic fundamentals of crypto valuations.

The figures also uncover a flaw in an industry where rising protocol revenue can happen alongside lackluster returns for tokenholders.