TVL has grown for 12 consecutive quarters, yet gross profit has declined: DeFi shouldn’t be judged solely by deposit rankings. Sanctum’s latest quarterly report is worth examining more closely than just “record-breaking scale.” ① On October 23, Sanctum released its Q3 2026 report. The project disclosed that TVL reached approximately 18.6 million SOL at quarter-end, marking the 12th consecutive quarter of growth. Note that this reflects the scale at quarter-end, not new deposits added this week. ② However, another set of figures shows the opposite trend: gross profit declined by approximately 6.2% quarter-over-quarter in USD terms and by about 16.3% in SOL terms. The same business, measured in a different unit, reveals a different magnitude of change. ③ The project attributes the decline primarily to a one-time revenue spike from large LST redemptions in the prior quarter; Solana Compass further notes that this quarter also included a significant one-time redemption. Therefore, when evaluating profitability, it’s essential to distinguish between episodic and sustainable income. ④ TVL growth does not immediately translate into proportional revenue; gross profit is not net profit, nor does it directly indicate token holder returns. These figures are based on project disclosures and reporting; I have not independently verified them. My own assessment: This report has shifted my focus toward “how much sustainable income each unit of assets generates.” While growth in scale is important, if revenue relies heavily on occasional large transactions, sustainability must be assessed more cautiously. Next quarter, I’ll closely monitor whether new assets are being retained and whether the business has genuinely improved after excluding episodic income. NFA / DYOR @Solana_zh @solana @sanctumso