For the first time in history, Dapps generates more revenue than blockchains, raising questions about the actual value of the latter without the former, raising questions about how this trend accelerates the rise of Appchains.
Dapps generates more revenue than blockchain
The decentralized finance industry is entering new states where applications are becoming more relevant than the technologies that enable them. A report from the crypto newsletter Milk Road revealed for the first time that decentralized apps (or DAPPS) have higher revenues than blockchain.
Milk Road, which has earned blockchain revenues of $1.4 billion, found Dapps made $1.8 in the first quarter of 2024, raising questions about the sustainability of the former.
Milk Road shows the change in what is considered true value on the blockchain. This is because they are used to capture more value than what the builder places on it.
It stated:
No one logs on just to use the blockchain. (Users) come to trade, play, invest, socialize, spending. That’s where attention goes and where revenue actually flows.
As the market changes in this direction, this could also increase the proportion of DAPPs launching chains to increase revenue and firing the chains to acquire fees earned from activities and transactions.
The newsletter explains that popular cipher swapping DAPP Uniswap did just that and launched its own chain to generate more revenue. In this way, Uniswap aims to receive more than $70 million that previously paid Ethereum fees, opening up more revenue channels and handling the ecosystem under one chain.
Additionally, DAPP Builders can also customize these chains to suit their specific needs. UNISWAP has tried to use Ethereum with faster blocking times, cheaper transaction fees, and better MEV protection to Unichain.
Milk Road says this trend will continue to grow in the future. “We believe that more apps will launch their own chains and bring in users. That’s not smart, it’s inevitable,” concluded.
Read more: UNISWAP launches UNICHAIN MAINNET to increase Defi efficiency
