The post DeFi Captures 5x Fee of Blockchains, Value Drifts to Front-End Apps appeared on BitcoinEthereumNews.com. Revenue in the crypto industry is increasinglyThe post DeFi Captures 5x Fee of Blockchains, Value Drifts to Front-End Apps appeared on BitcoinEthereumNews.com. Revenue in the crypto industry is increasingly

DeFi Captures 5x Fee of Blockchains, Value Drifts to Front-End Apps

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.

“While I am a believer that blockchain’s network effects will always command a premium, it makes sense that more value than what is currently ascribed should drift to the front end — wallets, DeFi apps, and protocols closest to users,” wrote Coutts in a Thursday X post.

Source: Jamie Coutts

The chart shows a significant increase in the fee share captured by DeFi protocols, up from roughly parity in mid 2024.

Related: Short squeeze hits top 500 cryptos as traders unwind bearish bets

DeFi apps and protocols become blockchain industry’s top 17 earners

Data compiled by DeFiLlama shows that DeFi protocols now dominate the rankings of the highest-earning crypto products. The top 17 fee-generating entities over the past 30 days were applications or protocols rather than base-layer blockchains.

Solana captured over $20.4 million in fees over the past 30 days and was the only blockchain in the top 20. However, this pales in comparison to the $563 million generated by stablecoin issuer Tether, the leading protocol by fees, according to DeFiLlama.

Top protocols and chains by fees generated over past 30 days. Source: DeFiLlama

Ethereum was the only other blockchain to make the top 30, with $10.3 million generated in 27th place.

The dynamic suggests that developers and institutional investors may show increasing attention to DeFi apps rather than the underlying blockchain layer, as applications attract a growing share of total revenue.

Related: BitMine to invest $200M in YouTuber MrBeast’s Beast Industrie

Blockchains by active users, 30-day chart. Source: Nansen

Solana’s lead among the chains can be attributed to its activity, as Solana was the most-used network, with over 68 million active addresses during the past 30 days, up 14%, according to crypto intelligence platform Nansen.

Ethereum was in the sixth place, with 13 million active monthly addresses, up 53% during the past 30 days.

Magazine: Pakistan will deploy Bitcoin reserve in DeFi for yield, says Bilal Bin Saqib

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy

Source: https://cointelegraph.com/news/defi-apps-capture-more-fees-than-blockchains?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound

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