APPS ARE NOW OUT-EARNING BLOCKCHAINS

Summary from the TLDR Crypto newsletter

Leading crypto applications like Pump.fun ($724M revenue) and Hyperliquid ($667M) are now out-earning the blockchains they're built on, such as Solana ($1.3B revenue, $632M in fees). These apps trade at far lower valuations despite using most of their revenue for token buybacks and transparent cash flows, while L1s retain only a fraction of the activity-generated value. The long-standing assumption that chains capture proportional value from ecosystem growth is breaking down as onchain value accrues to applications, not infrastructure. The “L1 premium” could continue eroding unless chains find new mechanisms, like white-labeled stablecoins, to internalize more of the liquidity and fees flowing through their ecosystems.