DeFi protocols are taking a bigger and bigger share of the blockchain industry’s fees, which could mean that investors are moving towards front-end applications.
Recent research shows that more and more money in the crypto business is going to user-facing apps instead of the underlying blockchain networks. This could mean that investors and developers should pay more attention to these apps.
According to data given by Jamies Coutts, chief crypto analyst at the crypto intelligence platform Real Vision, decentralised finance (DeFi) apps now make five times as much money as blockchains.
Source: Jamie Coutts
Revenue is shifting toward user-facing crypto products
The pattern shows that DeFi apps, like wallets, decentralised exchanges (DEXs), and other protocols, will get a larger share of the industry’s fees, while the underlying networks will get a smaller share of the money.
Coutts stated in a Thursday X post, “While I believe 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.”
The graphic illustrates that DeFi methods are now taking a much larger share of the fees, up from around the same amount in mid-2024.
DeFi protocols dominate the industry’s top earners
According to data from DeFiLlama, DeFi protocols now make up the majority of the top-earning crypto products. In the last 30 days, the 17 companies who made the most money from fees were applications or protocols, not base-layer blockchains.
In the last 30 days, Solana made more than $20.4 million in fees, making it the only blockchain in the top 20. But this is nothing compared to the $563 million that Tether, the leading protocol by fees, made, according to DeFiLlama.
Ethereum was the only other blockchain in the top 30. It came in 27th position with $10.3 million.
The trend shows that developers and institutional investors may be more interested in DeFi apps than the blockchain layer itself, since apps are taking a bigger share of total revenue.
According to the crypto intelligence platform Nansen, Solana has the most active addresses in the past 30 days, with over 68 million, a 14% increase. This is why Solana is at the top of the chains.
Ethereum placed sixth, with 13 million active monthly addresses, a 53% increase in the last 30 days.