“Fat applications” may lead to the leadership of encryption in the coming months: BitWise

One of the CEOs of encryption says that a new thesis argues that most of the encryption value today is captured in applications, instead of Blockchains, is gaining popularity with the appearance of liquid high and can transform investor behavior during the next few months.

“All the wonderful children talk about the thesis” Application of Fat “. He feels that this can be a dominant topic in the coming months. He said In the X Publishing on Wednesday. The theory of fat application indicates that encryption applications will absorb more value than the basic Blockchain protocols in the future.

“It is the type of thesis that I think will appear in the main media within 1-3 months. In this way, I think it is a valuable mental model to keep in mind that people watch the encryption reveal,” Hogan explained.

Some layer 1 can stand out, but applications will dominate

FAT, which is a relatively new idea, Challenges The 2016 Joel Mongerro protocol thesis, on the pretext that most of the value will accumulate on the basic layer – chains like Ethereum, Solana or Avalanche – instead of applications.

Instead, the FAT application thesis indicates that the value focuses on the application layer, as the applications capture more revenues and the user’s interest from the Blockchains you are working on.

In the event that more people are adopted by this thesis, it can change how investors have the value of the distinctive codes of the 1 layer compared to the application symbols.

The fat protocol thesis has also received a lot of controversy over the years.

Digital Asset Investment Company Jeff Dorman Make up In a report in 2021, the thesis of the fat protocol was not properly proven, as it may be due to the reasons “unrelated to the value that is captured.”

He said that it might be because of the retail investors of class 1 as a betting bet and investment capital funds in favor of the most important plays in the market.

“The investment of digital assets is still dominated by investment capital funds in the early stage, which focuses on the totalable market (TAM) on financial evaluation, and they tend to search for what” can be “on” what is currently “, explained.

Dorman He said On February 9 /

“It is nonsense, causing each application to try to become L1, as it pays all VC dollars to L1S, and makes the L1S dead with a value of $ 1 billion.”

The investment company says the encryption industry “has already started voting”

He added: “It will win a few L1S, but nothing is worth more than the total of applications.”

Meanwhile, the institutional investment company, Starkiller Capital He said In Tuesday’s report, there are signs that the FAT application is already controlled.

The company said: “Over the past year, the relative procedure for the relative prices of Blockchain Core is clearly versus story symbols.

The Sol/BTC, which measures Solana’s relative strength against Bitcoin, has decreased by 16.11 % over the past 12 months, According to To TradingView.

The company said: “The market has already started to vote,” the company said. They added, “The performance of the most explosive symbol came from applications, not protocols.”

BitWise Exec varies with “Take L1”

However, Hogan does not agree to “Take the L1 Control” for the company.

Related to: Analysts say the current fear of encryption traders will not last for a long time

“I think the major L1S is actually in a good position for the next year. But this is good and deserved to be considered,” said Hagan.

Hagan said: “It is not an accident. The noise is a pure expression of demand for application, actual users, actual flows, and the speed of the actual distinctive symbol associated with use, not just a number of generalized space,” said Hagan.

Hyperliquid is trading at $ 55.56, an increase of 1,636 % over the past 12 months, According to To Coinmarketcap.

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