Opinion of: Hatu Sheikh, founding father of Coin Terminal
Although blockchains and dapps are of crucial importance, the stakeholders of the crypto industry often prioritize applications based on adoption principles and revenue distribution. Dapps don’t work without their underlying chains. The markets must maintain blockchains for long -term added value.
The value perspective is fallacious
Blockchains and dapps should work together to coordinate their functions for higher user -friendliness. Instead, analysts, based on the structural framework of Web2, create a binary file between chains and dapps.
In “Fat Protocols” Joel Monegro argued that the worth on the Internet stack “includes thin” protocols and “fat” applications. In other words, the investment within the underlying protocol technologies reminiscent of TCP/IP, HTTP and SMTP gives lower returns than applications reminiscent of Google and Facebook.
MONEGRO also explained that the worth within the “Blockchain application stack” is the opposite way round. The underlying layer of protocol accumulates greater than the layer of application, which results in “fat” protocols and “thin” applications. He later published an updated counter -conversion with a purpose to make clear “the success of application layers as a prerequisite for protocol growth” and the way the worth creation is determined by the whole addressable market.
When apps have gotten increasingly popular, pull users for the underlying blockchain that use the token of the chain to interact with the app. Such a requirement pressure results in token price growth and eventually builds up a powerful network through which blockchains acquire the utmost value.
In a recently carried out research report, it was shown how the parameters for generating income reminiscent of Onchain fees could turn over the thesis of MONEGRO.
In 2024, blockchains received 70% of the entire market capitalization of the crypto industry (without bitcoin and stable coins), 6 billion US dollars. In the meantime, DAPPS earned 3.3 billion US dollars with only 30% market share, which produced 35% of the entire Onchain fees. The trend continues in the primary quarter of 2025, since Dapps recorded the entire fees of 1.8 billion US dollars in comparison with 1.4 billion US dollars for blockchains.
According to the report, apps generate real value and user interaction because higher fees reflect increased usage rates. Since no one registers in an app simply to access a blockchain, people use apps to act, play, invest, make contacts and spend time. This is how apps generate opportunities for value and sales.
Since apps are the primary layer of interaction of the users, they’ve higher requirements and more growth channels. The report says: “Blockchains could have built the streets – however the apps construct the cities.”
Youngest: Each chain is an island: crypto's liquidity crisis
Without “streets”, nevertheless, it’s unimaginable to navigate and navigate and access “cities”. Therefore, such a added value, whether the markets prefer chains or apps, is a myopic perspective.
Analysts and veterans of the crypto industry must understand the crucial role of blockchain within the management of the crypto industry. As a result, the cryptoma markets must at all times support blockchains no matter their economic value potential.
Blockchains are of fundamental importance for cryptoma markets
Blockchains are the mandatory trust anchors for decentralized applications through transparent and unchangeable ledger. During the multi -parties -Dapp interactions, blockchains act as a source of truth for manipulation -proof records and make the chains an integral infra layer.
The binary argument of the chain vs. app is fallacious, since blockchains are essentially timekeeping for DAPP-generated data. Such time temple data make all Onchain transactions easier and enable people to make use of Dapps without trust.
It is irrelevant if the worth potential of a blockchain relies on revenue and use of use, as that is the duty of playing, social and financial applications. Blockchains are the essential layer for constructing applications and other user products that generate returns within the investment capital.
In addition, despite the challenges of liquidity and integration, the constant increase in modular app chains is one other example of the importance of blockchain architecture. When resource -hungry apps eat network capacities, app chains solve the issue by working as independent blockchains to enhance performance and reduce latency.
The use of app chains to unravel the bottlenecks of a network shows that apps don’t work independently and require the corresponding chain architecture. Each modular Appchain thus has its own computing resources, storage capability and resources to stop competing applications from slowing down the performance.
These examples illustrate why cryptoma markets evaluate blockchains greater than independent applications. It is because apps don’t survive without blockchains.
“Value” doesn’t at all times mean financial incentives and growth metrics. Sometimes the worth also comes from the popularity of your cardinal role through the market within the industry. In this market scenario, blockchains will at all times be way more precious than individual applications no matter fees and income.
Opinion of: Hatu Sheikh, founding father of Coin Terminal.
This article serves general information purposes and mustn’t be considered legal or investment advice. The views, thoughts and opinions which might be expressed listed here are solely that of the writer and don’t necessarily reflect the views and opinions of cointelegraph or don’t necessarily represent them.
