Delphi Digital has observed a decline in the valuation premium for Layer 1 (L1) blockchains, as the market shifts focus towards "fat applications" and sustainable revenue models. The demand for homogeneous infrastructure is decreasing, prompting major blockchain networks to demonstrate real, recurring revenue streams to attract investor interest. Stablecoins, such as USDC and USDT, are highlighted as potential revenue drivers, with over $300 billion circulating on alternative L1 and L2 networks. This activity generates more than $1 billion annually for issuers like Circle and Tether, while the broader ecosystem accrues approximately $800 million in fees. The report suggests that capturing stablecoin value is becoming crucial for chains, marking a shift from subsidizing issuers to leveraging stablecoin integration for growth.