Matt Hougan: Crypto Revenue Shifts to Apps Layer

Matt Hougan shared MeshClans data showing crypto revenue shifting from L1 blockchains to application layer, with blockchains capturing 90%+ of monthly revenue from August 2021 through 2023 but dropping to 25% by mid-2026 as finance apps exceeded 50% in most months and consumer apps took a steady share. BTC security budgets and L1 gas fees once drove all value because infrastructure was the only place money could accrue, mirroring the internet evolution from infrastructure providers to apps value capture analogy where ISPs dominated in the 1990s before platforms took over. Lean teams at protocols like HyperliquidX and Pumpfun now generate hundreds of millions by turning trading volume and engagement into direct fees, proving the economic center of crypto moved to apps running on cheaper, scalable blockchains.