DApps Are Making More Money Than Blockchains
Looking at the past 12 months, the picture is clear: value is accruing to applications, not to chains anymore.
Solana has a market cap of around $81 billion, yet generated only about $667 million in fees over the year, implying a market cap to fees ratio of roughly 121x. Avalanche, Aptos, Sui, and Sei look even more stretched, ranging from 500x to over 1,000x. Sei stands out at an extreme level, above 5,800x. This means most L1s are being valued largely on future expectations, not on current cash flows.
Applications tell a very different story. Hyperliquid generated around $812 million in revenue and $873 million in fees over one year, with a market cap of roughly $7.75 billion. That puts its market cap to revenue ratio at about 9.5x. Pump.fun is even more aggressive: around $414 million in revenue with a market cap near $1.86 billion, or roughly 4.5x revenue. These are business-style valuations, not narrative-driven crypto premiums.
At the core, the economics are simple. Chains sell blockspace, compete aggressively, and end up pushing fees down. Apps sell products, user experience, and liquidity, and they retain the cash flow.
As blockspace becomes increasingly commoditized, the L1 premium gets eroded. Economic value naturally migrates up the stack. Chains start to resemble infrastructure, while apps increasingly look like real businesses.
