In the ever-evolving landscape of cryptocurrency, a new analysis suggests that the industry’s heart may lie more with blockchains than with standalone decentralized applications (DApps). This perspective emerges as stakeholders prioritize the foundational chains that underpin the flourishing app ecosystem—a trend shaping the market’s long-term trajectory.
Chains Over Apps: The Market’s Silent Affinity
Recent data highlights a revealing twist in the crypto narrative: while DApps are bustling with activity and raking in fees, it’s the blockchains—the silent architects beneath these applications—that are capturing the industry’s lasting value. According to a 2024 report, blockchains commanded a whopping 70% of the market cap, pulling in $6 billion in fees, in contrast to the $3.3 billion generated by DApps. This trend persisted into the first quarter of 2025, with DApps recording $1.8 billion in fees compared to $1.4 billion for blockchains.
But here’s the catch: while apps are the users’ first point of interaction, driving engagement and generating revenue, blockchains serve as the crucial infrastructure layer. “Blockchains may have built the roads,” noted a recent report, “but the apps are building the cities.” Yet, without these “roads,” navigating the crypto landscape would be impossible.
The “Fat Protocol” Debate Revisited
This interplay between blockchains and DApps revisits the “Fat Protocols” thesis posited by Joel Monegro. He argued that in the blockchain stack, the underlying protocol layers accrue more value than the application layers—contrasting with traditional internet models where applications like Google and Facebook overshadow their protocol counterparts.
Monegro’s updated insights, however, recognized the symbiotic growth of protocols and applications, emphasizing that the success of apps drives protocol expansion by attracting users to the chain’s tokens. As apps like Lido and EigenLayer have surged, they’ve brought with them increased demand for the tokens that power these networks, creating a feedback loop of value generation. This dynamic is also evident in how restaking can make DeFi more secure for institutional traders, ensuring a robust ecosystem for both protocols and applications.
Bridging the Chain-App Divide
While some analysts frame the dichotomy between chains and apps as a binary choice, industry veterans argue for a more integrated perspective. Blockchains function as the industry’s trust anchor, ensuring transparency and immutability in transactions. They’re the timekeepers for DApp data, facilitating trustless interactions.
Take modular app chains, for instance. These chains address the bottlenecks of resource-heavy apps by operating as independent blockchains, optimizing performance and reducing latency. This architecture underscores the indispensable role of blockchains in enabling app functionality.
“Apps won’t function independently,” noted a crypto analyst. “Without the corresponding chain architecture, we’d face performance issues and inefficiencies.” It’s a sentiment echoed across the industry, as stakeholders recognize that apps, while drivers of user interaction, are tethered to the chains that sustain them. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance on staking.
Looking Ahead: Stability or Strain?
As the crypto market continues to burgeon, the question remains: will this chain-centric value perception endure, or are we on the cusp of a shift towards app dominance? The current trajectory suggests that blockchains will remain the bedrock of the industry, their value extending beyond mere financial metrics to their fundamental role in the ecosystem.
Yet, with ongoing developments and innovations, particularly in app chains and interoperability solutions, the dynamics could evolve. As the market grows, there’s room for both chains and apps to thrive—each contributing uniquely to the crypto tapestry.
For now, stakeholders seem content with this balance, valuing the stability and security that blockchains provide while reaping the benefits of a vibrant app ecosystem. But as with all things crypto, change is the only constant. And as new players enter the field and technology advances, the value debate will likely persist, driving discussions and decisions across the industry.
Source
This article is based on: The crypto market values chains more than standalone applications
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
