Hidden Unemployment Crisis in Ethereum and Solana Defines DeFi Risks

An analysis by journalists has uncovered a hidden unemployment issue within Ethereum and Solana. Many protocols on these blockchains are technically active but do not generate any income, indicating a form of concealed inactivity. According to DeFi Llama, out of 1271 Ethereum protocols in the past month, 88% did not produce profits. In the Solana network, which comprises 264 protocols, 75% are inactive without generating returns. This situation results in greater strain on infrastructure, increased security risks, and economic losses, as millions of dollars are invested in unproductive assets. Moreover, this phenomenon worsens user experience and erodes trust in DeFi. Experts compare this scenario to digital ghost towns, with over half of the 7 million crypto assets since 2021 having ceased trading. It’s crucial to monitor ecosystem health and consider the 'ghost town' risk in the crypto industry.