THE FAT WALLET THESIS

Summary from the TLDR Crypto newsletter

A new thesis suggests value in the blockchain stack will increasingly accrue to wallets rather than protocols or applications, driven by protocols' diminishing pricing power and applications' commoditization through increased competition. Wallets are positioned to capture value through their proximity to end users, particularly via payment-for-order-flow and distribution as a service, leveraging high switching costs and mobile UX dominance. However, emerging frontend competitors like Jupiter and Infinex could challenge wallets' dominance by offering integrated user experience combining the most common activities with non-custodial principles.