Web3 revenue shifts from blockchains to wallets and DeFi apps
A growing amount of the blockchain industry’s fees are captured by DeFi protocols rather than the underlying networks, signaling a potential investor shift to front-end facing applications.
Revenue in the crypto industry is increasingly flowing to user-facing applications rather than the underlying blockchain networks, according to recent data, signaling a potential shift in where investors and developers focus their attention.
Decentralized finance (DeFi) applications now capture five times the fees generated by blockchains, according to data shared by Jamies Coutts, chief crypto analyst at crypto intelligence platform Real Vision.
The trend suggests that more of the industry’s fees will be captured by DeFi applications like wallets, decentralized exchanges (DEXs) and other protocols, while the underlying networks will attract a smaller share of revenue.