Web3 revenue shifts from blockchains to wallets and DeFi apps

💡 DMK Insight

DeFi protocols are increasingly capturing blockchain fees, and here’s why that matters: This trend indicates a shift in investor focus towards applications that offer more immediate utility and returns. As DeFi platforms gain traction, traditional blockchain networks may see reduced fee revenue, which could impact their valuations. Traders should keep an eye on the performance of major DeFi tokens, as they might outperform underlying assets in the short term. If DeFi protocols continue to dominate fee capture, we could see a rotation out of traditional cryptocurrencies into these more lucrative applications. But don’t overlook the potential risks. If the market sentiment shifts or if regulatory pressures mount against DeFi, we could see a rapid reversal. Monitoring key metrics like total value locked (TVL) in DeFi protocols and transaction volumes on major networks will be crucial. Watch for any significant changes in these indicators over the next few weeks, as they could signal broader market trends.