Delphi Digital: The L1 valuation premium has disappeared, and market demand for homogeneous infrastructure is weakening.

According to an article published on X by Odaily Planet Daily, Delphi Digital states that the valuation premium for Layer 1 is disappearing. The shift from "fat protocols" to "fat applications" has been ongoing for some time, but the market is only now beginning to price this in. Market demand for homogeneous infrastructure is weakening, and investor expectations have shifted.

Major public blockchains are facing increasing pressure to demonstrate genuine and sustainable recurring revenue. Stablecoins may be a solution; currently, over $30 billion worth of USDC and USDT are deployed on various alternative Layer 1 and Layer 2 networks, generating over $1 billion in revenue annually for Circle and Tether. The ecosystem truly driving demand for these stablecoins generates approximately $800 million in transaction fees. Many public blockchains have recognized this and are beginning to internalize the economics of stablecoins rather than continuing to subsidize issuers.