The Application “Big Bang” Is Just Beginning

For years, the blockchain industry has been waiting for a true explosion of mainstream applications. After years of infrastructure development, the stage is now set for a new era of innovation.

Infrastructure Breakthroughs Unlock the Next Wave

With the launch of faster, more scalable chains and major upgrades across top platforms, developers can now focus on building real-world applications rather than worrying about technical limits. The arrival of cheap, reliable blockspace—from Ethereum’s Dencun upgrade to new L1s like Aptos, Sei, and Sui—means the experimentation phase for Web3 apps has truly begun.

New Application Categories Emerging

Developers are no longer just copying DeFi and NFT models. We are seeing growth in decentralized social media, DePIN networks, AI-enabled tools, and entirely new classes of on-chain experiences. The success of these new applications will depend on how well they leverage the infrastructure breakthroughs and build compelling network effects.

The Value of Early Adoption

History shows that being early matters. The DeFi Summer of 2020 created foundational protocols like Aave, Maker, and Uniswap that remain at the core of the ecosystem. We expect this new cycle of application innovation to follow a similar pattern: the first platforms to achieve meaningful traction will be difficult to unseat as network effects compound.

Investors are already taking notice. Last week, the decentralized social platform Farcaster raised $150 million in a round more commonly seen for L1 blockchains. This signals a shift—capital is moving to the application layer, and the opportunity set is expanding.

What Could Go Wrong?

• Unforeseen technical bottlenecks may still emerge as user numbers reach new highs.
• Too much focus and funding on new infrastructure, not enough on unique apps.
• Regulatory headwinds—especially from the US—could stifle innovation and adoption.