The new paper, which claims that most encryption value is captured in the app, is gaining popularity due to the injury of the hyperklicade and can change investor behavior for the next few months, the crypto management said.
Matt Hougan, the chief information officer at Bitwise, said in the Wednesday X Post, “All wonderful children are talking about the ‘Fat App’ paper, and I think it can be a dominant theme in the next few months.
Hougan said, “This is a kind of paper suspected of appearing in mainstream media within 1-3 months, so I think it’s a valuable mental model that people should keep in mind while watching encryption.
Several layers -1 stands out, but the app is dominant.
The FAT app paper, a relatively new idea, challenges Joel Moneygro’s 2016 FAT protocol paper, and claims that most value will occur in chains such as Ethereum, Solana or Avalanche, not applications.
Instead, the FAT APP paper suggests that the value focuses on the application class and captures more profits and users’ attention than the blockchain where the application is executed.
If more people adopt thesis, investors can value one tier one token compared to the application tokens.
Local protocol papers have also been controversial over the years.
JEFF DORMAN, head of Digital Asset Investment Firm, explained that in 2021, the fat protocol paper has not been proven to be accurate yet.
He said it could be because of retail investors who handle layers -1 as an easy index bet and prefer to play more important in the market.
“Digital asset investment still tends to be dominant by the early stage venture capital funds, which are focused on the total address market (TAM) on financial evaluation, and tend to find” what can be “about what it is.
Dorman said on February 9 that “local protocol papers have caused great damage to encryption.”
“It’s ridiculous, all apps try to be L1, lead to all VC dollars to L1, and create DED L1 of L1, worth 1BN+$ 1.”
Crypto Industry says, “We have already started voting.”
“L1 will win, but it will be more valuable than the sum of the app,” he added.
Meanwhile, Starkiller Capital, an institutional investor, said in a Tuesday report that there is a sign that the FAT App narrative is already being maintained.
“The relative price behavior of key blockchain tokens and application tokens over the past year clearly informs the story. I chose Ethereum, Solana, Avalanche, chain and went sideways against BTC.”
According to TradingView, the SOL/BTC ratio, which measures the relative strength of Solana for Bitcoin, has decreased by 16.11% over the last 12 months.
The company said, “The market has already begun voting.” “The most explosive token performance came from the application, not the protocol.”
Bitwise EXEC does not agree with “Anti-L1 take”.
But HOUGAN does not agree with the company’s “Anti-L1 Take.”
relevant: The analysts said that the current fear of the password merchant will not last long.
HOUGAN claims that Hourliquid is a noticeable encryption token in the market.
HOUGAN said, “This is not an accident. Overall advertising is a pure expression of actual token speed tied to use, as well as application level demand, real user, real flow, and generalized block space tolls.
According to CoinmarketCap, Hyperklicerr has been trading at $ 55.56, up 1,636% over the past 12 months.
magazine: Meet Ether Leeum and Polkadot Co -founder in Time magazine.