Opinion by: Hatu Sheikh, founder of terminal corner
Although blockchains and DAPPs are essential, stakeholders in the cryptographic industry often prioritize applications according to the principles of adoption and the distribution of income. The DAPPs will not work without their underlying chains. The markets must maintain blockchains for the generation of long -term value.
The prospect of value is wrong
Blockchains and DAPPs should work in collaboration to coordinate their functions for better conviviality. Instead, analysts create a binary between channels and DAPPs based on web2 structural frames.
In “Fat Protocols”, Joel Monegro argued that the value in the Internet battery includes “thin” protocols and “fat” applications. In other words, investing in underlying protocol technologies such as TCP / IP, HTTP and SMTP gives lower yields to applications like Google and Facebook.
Monegro also declared that the value is reversed in the “Blockchain application battery”. The underlying protocol layer accumulates more value than the application layer, leading to “fatty” protocols and “thin” applications. He then published an updated replica to clarify “the success of the application layer as a requirement for the growth of the protocol” and how the value capture depends on the total addressable market.
As applications become more popular, they attract users to the underlying blockchain that uses the chain token to interact with the application. Such demand pressure leads to the growth in the prices of the tokens and, finally, builds a solid network where the blocks of blocks capture a maximum value.
A recent research report has shown how revenue generation parameters such as onchain costs could return Money’s thesis.
In 2024, blockchains controlling 70% of the total market capitalization of the cryptographic industry (excluding Bitcoin and Stablecoins) gained $ 6 billion in fees. Meanwhile, the DAPPs, with only a 30% market share, made $ 3.3 billion, generating 35% of the total onchain costs. The trend continues in T1 2025 while the DAPPs recorded $ 1.8 billion in total fees, compared to $ 1.4 billion for blockchains.
According to the report, applications generate real value and user interaction, as higher costs reflect an increase in use rates. Since no one connects to an application just to access a blockchain, people use applications to exchange, play, invest, socialize and spend time. Thus, applications generate value and income opportunities.
Since applications are the first user interaction layer, they have higher demands and more growth channels. The report indicates: “Blockchains may have built the roads – but applications build cities.”
Recent: Each chain is an island: the crypto liquidity crisis
But without “roads”, “it is impossible to navigate and access to” cities “.
Analysts and veterans in cryptographic industry must understand the essential role of blockchain in the management of the cryptography industry. Therefore, cryptographic markets must always support blockchains regardless of their economic value potential.
Blockchains are fundamental for cryptographic markets
Blockchains are the trust arbitration transactions necessary for decentralized applications through transparent and immutable books. During the Multipartite DAPP interactions, blockchains act as a source of truth for stimage recordings, making chains an all -wheel drive.
The Binary Chain VS app argument is false because blockchains are essentially timers for data generated by DAPP. Such temporal data facilitate all onchain transactions and allows people to use DAPPs without confidence.
It is not relevant if the value potential of a blockchain is based on income and the adoption of users, because it is the task of game, social and financial applications. Blockchains are the fundamental layer of the creation of applications and other user products that generate yields on investment capital.
In addition, despite the liquidity and integration challenges, the constant rise in modular application chains is another example of the importance of blockchain architecture. When resource -consuming applications consume network capacities, application channels solve the problem by functioning as independent blockchains to improve performance and reduce latency.
The use of application channels to resolve the grouts of a network demonstrates that applications will not work independently and require the architecture of the corresponding chain. Each modular apptchain thus has its own calculation resources, storage capacities and resources to prevent competing applications from slowing performance.
These examples illustrate why cryptographic markets are worth more blocks of blocks than autonomous applications. This is because applications will not survive without blockchains.
“Value” does not always mean financial incentives and growth measures. Sometimes the value also comes from the market recognition of their cardinal role within the industry. In this market scenario, blockchains will always be much more precious than individual applications, regardless of costs and income.
Opinion of: Hatu Sheikh, founder of terminal corner.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
