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

According to Odaily, Delphi Digital posted on X stating that the valuation premium of Layer1 is disappearing, and the shift from "fat protocols" to "fat applications" has been ongoing for some time, but the market is only now starting to price this in. The demand for homogeneous infrastructure in the market is weakening, and investors' expectations have shifted.

Major public chains are facing greater pressure and need to demonstrate real and sustainable recurring revenue. Stablecoins may be a way out. Currently, more than 30 billion US dollars worth of USDC and USDT are deployed on various alternative Layer1 and Layer2 networks, generating over 1 billion US dollars in annual revenue for Circle and Tether. The ecosystems that truly drive the demand for these stablecoins generate a total of about 800 million US dollars in fee income. Many public chains have realized this and have begun to internalize the economic benefits of stablecoins, rather than continuing to subsidize the issuers.