The crypto market values chains more than standalone applications
Blockchains and decentralized applications (DApps) must collaborate for optimal usability, as DApps rely on their underlying blockchains. Analysts often misinterpret the value dynamics between chains and DApps, following outdated Web2 frameworks. Joel Monegro's "Fat Protocols" concept highlights that, unlike traditional internet stacks, blockchains accumulate more value than applications. Recent data shows that in 2024, blockchains earned $6 billion in fees, while DApps generated $3.3 billion, indicating that applications drive user engagement and revenue. Blockchains serve as essential infrastructure, providing trust and transparency for DApp interactions. The rise of modular app chains further emphasizes the necessity of blockchain architecture for app performance. Ultimately, blockchains hold greater intrinsic value than individual applications due to their foundational role in the crypto ecosystem.
