If you've been deep in the crypto world, you've probably heard endless chatter about Total Value Locked (TVL) as the ultimate measure of a blockchain's success. But a recent discussion sparked by Laura Shin's Unchained podcast interview with Lily Liu, President of the Solana Foundation, and amplified by Bitwise CEO Hunter Horsley's tweet, suggests it's time to pivot. Revenue, they argue, is the real north star for protocols—and this could have big implications for meme tokens.

The Tweet That Started It All

Hunter Horsley, CEO of Bitwise Invest, took to X to draw parallels between the evolution of metrics in emerging tech sectors. He compared internet companies' shift from page views and users to revenue and profitability with crypto's journey from features and speeds to TVL and transactions. Now, he says, the conversation is turning to revenue for Layer 1 and Layer 2 blockchains.

Horsley was quoting Shin's post about her chat with Liu, where Liu breaks down why TVL falls short. TVL, for the uninitiated, is the total amount of assets locked in a protocol or chain—think of it as money sitting in smart contracts for lending, staking, or trading. It's been a go-to stat because it signals trust and potential activity. But Liu points out it's easily gamed: projects can inflate it with incentives without real utility.

Instead, Liu champions revenue—actual fees generated from transactions that flow back to token holders and validators. On Solana, this includes base fees (fixed per transaction) and priority fees (extra tips for faster processing). She explains how this creates real value capture, unlike TVL, which might just represent dormant liquidity touched once a year.

Why Revenue Matters More Than TVL

Imagine TVL as the number of downloads for an app—it's exciting at first, but it doesn't tell you if people are actually using it or paying for premium features. Revenue is like subscription income: it shows sustained engagement and profitability.

Liu draws from tech history, noting how early internet metrics evolved similarly. In crypto, especially for chains aiming to be financial infrastructure (beyond Bitcoin's digital gold status), revenue ties usage directly to token value. For Solana, with its low fees and high throughput, meme token trading has been a massive driver of this revenue. Pumps and dumps? Sure, but each trade racks up fees that benefit the network.

Critics might say revenue can be gamed too—think wash trading or bots inflating volumes. Liu acknowledges this but notes it's costlier to fake than TVL, as you have to pay real fees. Plus, over time, sticky TVL can indicate trust, but it's an upstream metric. Revenue is downstream, closer to actual value.

Tying It Back to Meme Tokens

Meme tokens thrive on hype, community, and viral moments, but they're often dismissed as pure speculation. This metric shift could change that narrative, especially on Solana, home to hits like Dogwifhat or Bonk.

High trading volumes from memes generate priority fees, boosting Solana's revenue. Liu mentions how applications (including token projects) can capture a cut of transaction revenue, opening doors for meme tokens with built-in tokenomics—like burn mechanisms or holder rewards funded by fees.

If revenue becomes the benchmark, chains like Solana that host active meme ecosystems could shine. It rewards real activity over locked-up funds, potentially attracting more developers to build meme-friendly tools. For traders, this means evaluating memes not just on memes (pun intended) but on their ability to drive network fees and utility.

Looking Ahead

As Horsley notes, crypto metrics are maturing—just like the industry. With voices like Liu leading the charge, expect more focus on sustainable economics. For meme token enthusiasts, this isn't a threat; it's an opportunity. Chains that monetize fun, fast trades could lead the pack.

If you're diving into Solana memes, keep an eye on revenue dashboards like those on DefiLlama. It's not just about the laughs anymore—it's about the lasting value.

For the full interview, check out Laura Shin's Unchained podcast. And follow Hunter Horsley on X for more insights.