Web3 fee revenue shifting from blockchains to wallets, DeFi: Report

A significant portion of fee revenue in the blockchain industry is flowing to decentralized finance (DeFi) applications and wallets rather than the network layer itself, Cointelegraph reported. This trend suggests that the focus of investors and developers may also be shifting toward the application layer. According to an analysis by Jamie Coutts, a crypto market analyst at Real Vision, DeFi apps are now generating five times the fee revenue of the blockchains they operate on. Cointelegraph explained that if this trend continues, a greater share of fees will be allocated to DeFi apps such as wallets, decentralized exchanges (DEXs), and other protocols, leaving less revenue for the underlying blockchain networks.