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So over the weekend I was reading this deep dive by House of Chimera about the Fat Protocol Thesis—and honestly, it got me thinking. I was gonna make a video on it, and they actually invited me to go ahead and share my thoughts. So… here we are.
If you were around in the 2020–2021 bull run, you’ll remember how everyone was obsessed with Layer-1s. Solana did a 300x. The whole idea was that value in Web3 would mostly go to the base layer—not the apps built on top. And back then, it worked.
Fast forward to 2025, and it’s a different story.
There’s way more infrastructure now. New chains are launching left and right, but most of them are flopping. ZkSync, Starknet, Wormhole—all down 70–90% since launch. Big raises, big hype, but not much to show in terms of real usage or staying power.
At the same time, attention is shifting. VCs are now chasing apps with actual users. Stuff like DeFi, social, gaming, payments—projects that are solving real problems and getting traction. You don’t need to bet on the chain anymore—you can bet on the experience.
And now with modular blockchains popping up, value’s being split across layers—execution, data, consensus—so no one chain is capturing it all like before.
So is the Fat Protocol Thesis dead? Nah—not dead. But it’s definitely changed.
Infrastructure still matters, but now it’s all about what’s being built on top. The real value comes from protocols and apps working together—and from projects that people actually want to use.
Anyway, if you want the full, proper breakdown, go check out House of Chimera’s original post. It’s packed with detail, loads of context—definitely worth the read
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