Opinion by: Hatu Sheikh, founder of coin terminal
Although blockchains and DAPPS are critical, crypto industry stakeholders often prioritize applications based on the principles of adoption and income distribution. Dapps will not work without their underlying chain. Markets should establish blockchains for the long -term generation of value.
Value’s perspective is wrong
Blockchains and dapps should work together -together to adjust their functioning for better usability. Instead, analysts create a binary between chains and dapps based on web2 structures.
In the “Fat Protocol,” Joel Moneygro Argued That amount within the Internet stack consists of “thin” protocols and “fat” applications. In other words, investing in the underlying protocol technologies such as TCP/IP, http, and SMTP provide a lower return than applications such as Google and Facebook.
Monergro added that the value is upside down with the “blockchain application stack.” The underlying protocol layer accumulates more value than the application layer, leading to “fat” protocols and “thin” applications. He later Na -Published An updated re-combine to clarify “application-layer success as a requirement for protocol growth” and how it depends on taking the value in the total addressable market.
While the apps are becoming more popular, they attract users to the underlying blockchain that uses the chain token to interact with the app. Such demand pressure results in the growth of the token price and, eventually, builds a powerful network where blockchains gain maximum value.
A recent research Report Showing how the parameters of the generation of income such as Onchain fees can flip Moneygro’s thesis.
In 2024, blockchains that control 70% of the total crypto industry market cap (excluding Bitcoin and Stablecoins) gained $ 6 billion on fees. Meanwhile, DAPPS, with 30% market shares, made $ 3.3 billion, making up 35% of the total onchain fee. The trend continues to Q1 2025 as the DAPPs recorded $ 1.8 billion in total charge compared to $ 1.4 billion for blockchains.
According to the report, the apps generate the real value and contact of the user, as the higher charge reflects the increase in use rates. Since no one flies to an app just to access a blockchain, people use apps to trade, play, invest, socialize, and spend time. Thus, apps generate opportunities for value and income.
As apps are the first layer of users’ contact, they have higher requests and more growth channels. The report said: “Blockchains may have built the roads – but the apps are building cities.”
Recently: Each chain is an island: Crypto’s liquidity crisis
But there are no “roads, ” it is impossible to navigate and access” cities. ” So, such a lens amount to check if the markets prefer chains or apps is a myopic perspective.
Veterans in the crypto industry should understand the blockchain’s critical role in the operation of the crypto industry. As such, crypto markets should always support blockchains regardless of their potential economic amounts.
Blockchains are mainly in crypto markets
Blockchains are the necessary confident transactions to arbitrating transactions for decentralized applications through transparent and unchanged ledgers. During contacts with multiparty DAPP, blockchains act as a source of reality for tamperproof records, making chains an integral layer of infra.
The chain compared to the binary argument app is not true because blockchains are essentially timekeepers for data generated by DAPP. Such a timestamp data facilitates all onchain transactions and gives people to use DAPPs without trust.
It is not relevant if the potential value of a blockchain is based on the user’s income and adoption because that is the task of playing, social, and financial application. Blockchains are the foundational layer for developing applications and other user products that make up the return to investment capital.
Moreover, despite the challenges of liquidity and integration, the steady increase of the modular app chain is another example of the importance of blockchain architecture. When hungry hungry consumes of network capacity, app chains solve The issue by operating as independent blockchains to enhance performance and reduce latency.
Using app chains to solve a network bottlenecks show that apps do not work independently and require the corresponding chain architecture. Each modular appchain thus has its own computational resources, storage capacities, and resources to prevent competing applications from slowing performance.
These examples describe why the value of crypto markets is more than just applications independently. This is because apps cannot live without blockchains.
“Value” does not always mean financial incentives and growth metrics. Sometimes, the value also comes from the market recognition of their cardinal role within the industry. In this market situation, blockchains will always be more important than individual applications, regardless of fees and income.
Opinion by: Hatu Sheikh, founder of coin terminal.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
