A cryptocurrency executive stated that with the rise of Hyperliquid, a new theory is gaining attention, which posits that most of the value in crypto today is captured by applications rather than blockchains, and this may change investor behavior in the coming months.
"All the cool kids are talking about the 'fat applications' theory. It feels like this could be the dominant theme in the next few months," Bitwise Chief Investment Officer Matt Hougan posted on the X platform on Wednesday. The fat applications theory suggests that crypto applications will absorb more value than the underlying blockchain protocols.
"I suspect this theory will appear in mainstream media within 1-3 months. Therefore, I think it's a valuable mental model worth keeping in mind as people observe the development of cryptocurrency," Hougan explained.
The fat applications theory is a relatively new concept that challenges the fat protocol theory proposed by Joel Monegro in 2016. The fat protocol theory argues that most value will accumulate at the base layer—such as blockchains like Ethereum, Solana, or Avalanche—rather than in applications.
In contrast, the fat applications theory posits that value is concentrated at the application layer, where applications capture more revenue and user attention than the blockchains they run on.
If more people adopt this theory, it could change how investors value layer one tokens compared to application tokens.
The fat protocol theory has also sparked considerable controversy over the years.
Jeff Dorman, Chief Investment Officer of a digital asset investment firm, explained in a 2021 report that the fat protocol theory has not been proven correct, possibly due to reasons "unrelated to value capture."
He stated that this might be because retail investors view layer one networks as simple index bets, while venture capital funds prefer more significant investment opportunities in the market.
"Digital asset investment is still dominated by early venture capital funds that focus on total addressable market (TAM) rather than financial valuations, tending to seek 'what could be' rather than 'what is,'" he explained.
Dorman stated on February 9, "The fat protocol theory has caused significant damage to cryptocurrency."
"A few layer one networks will win, but none will be more valuable than the sum of the applications," he added.
Meanwhile, institutional investment firm Starkiller Capital reported on Tuesday that there are signs the fat applications narrative has begun to take root.
"The price trends of core blockchain tokens relative to application tokens over the past year clearly illustrate this story. Ethereum, Solana, Avalanche—pick your blockchain—have all been relatively flat or down against BTC," the firm stated.
According to TradingView data, the SOL/BTC ratio, which measures Solana's strength relative to Bitcoin, has dropped by 16.11% over the past 12 months.
"The market has begun to vote," the firm stated. "The most explosive token performances come from applications, not protocols."
However, Hougan disagrees with the firm's "anti-layer one perspective."
"I believe the major layer one networks are actually in a favorable position for the coming year. But this argument makes sense and is indeed worth considering," Hougan stated, claiming that Hyperliquid (HYPE) is a standout crypto token in the recent market.
"This is not a coincidence. HYPE is a pure expression of application layer demand, with real users, real traffic, and real token velocity associated with usage, rather than just generalized space fees," Hougan said.
According to CoinMarketCap data, Hyperliquid is trading at $55.56, up 1636% over the past 12 months.
Related: SEC Chair says most crypto tokens are not securities, supports "super app" platforms
Original article: “Bitwise Executive: ‘Fat Applications’ May Become a Major Narrative in Months”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
