- The “Fat App” thesis argues that applications, not base blockchains, will capture most crypto value going forward.
- Matt Hougan and others say the idea is gaining attention and could shape investor views soon (source).
- Starkiller Capital cites recent token price moves as evidence that applications have outperformed core chains (report).
- Jeff Dorman rejects the thesis and warned it has harmed the market, calling it “nonsense” (Feb. 9 post).
- Hyperliquid (HYPE) is a recent example of app-level token performance, trading near $55.56 and up about 1,636% over 12 months (CoinMarketCap).
Matt Hougan, chief information officer at Bitwise, said this week that the “Fat App” thesis — the idea that crypto applications will capture most value instead of base blockchains — is gaining traction and could become a dominant theme in coming months (source).
The thesis challenges the earlier “Fat Protocol” view and challenges Joel Monegro’s idea that value accrues to layer-1 blockchains such as Ethereum or Solana.
Starkiller Capital said recent market moves support the Fat App view, noting that core chain tokens have lagged while application tokens have seen stronger gains (report).
The firm added that token price action shows this trend: “The market has already started voting,” and it pointed to chains like Ethereum and Solana trading sideways or weakening versus Bitcoin; the SOL/BTC ratio is down about 16.11% over 12 months, according to TradingView.
Jeff Dorman has criticized the Fat Protocol thesis and said it harmed crypto markets. “Fat protocol thesis has done major damage to crypto.” He also wrote, “It’s nonsense, it causes every app to try to become an L1, it drives all VC dollars to L1s, and it makes dead L1s worth $1 bn+.” (report, post).
Matt Hougan disputed an “anti-L1” reading of the narrative and said major layer-1s remain well positioned, while noting that Hyperliquid (HYPE) is a recent standout because it reflects direct application-level demand (source).
Hyperliquid is trading around $55.56 and rose about 1,636% over the last year, per CoinMarketCap. Token velocity means how quickly a token moves between users and can signal real usage at the application level.
Other related commentary and visuals have circulated on social platforms, including posts by David Phelps and the linked analysis above.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Stripe-backed Native Markets Leads in Hyperliquid USDH Vote.
- EasyGroup Founder Enters Crypto with EasyBitcoin Platform Launch
- Jim O’Neill’s Doubts Clash With BRICS 2026 Currency Launch Plans
- Paxos Launch Proposal: USDH Stablecoin to Back HYPE Rewards!
- Saylor Sees $1B Rise, Debuts on Bloomberg Billionaire 500 Up
