ChainCatcher message, Delphi Digital stated in X that the valuation premium of Layer1 is disappearing. The transition from 'fat protocols' to 'fat applications' has been ongoing for some time, but the market is only just beginning to price this in. The demand for homogeneous infrastructure is weakening, and investor expectations have shifted.
Major public chains are facing greater pressure to demonstrate real and sustainable recurring revenue. Stablecoins may be a way out, with over $30 billion in USDC and USDT already deployed across various alternative Layer1 and Layer2 networks, generating over $1 billion in revenue for Circle and Tether each year.
The ecosystem that truly drives the demand for these stablecoins has a total fee income of approximately 800 million USD. Many public chains have realized this and have begun to internalize the economic benefits of stablecoins, rather than continuing to subsidize the issuers.
