The 'Fat App' thesis, suggesting that crypto applications will capture more value than underlying blockchains, is gaining momentum, according to Bitwise CIO Matt Hougan. This emerging narrative challenges the 2016 'Fat Protocol' thesis, which posited that value would primarily accrue to base layer blockchains like Ethereum and Solana. Hougan noted that the 'Fat App' concept could become a dominant theme in the coming months, potentially influencing investor behavior. The thesis argues that applications will absorb more revenue and user attention than the blockchains they operate on, a shift that could alter how investors value layer-1 tokens compared to application tokens. Starkiller Capital's recent report supports this view, highlighting that application tokens have outperformed core blockchain tokens over the past year. Despite this, Hougan maintains that major layer-1 blockchains remain well-positioned for future growth, citing Hyperliquid's significant market performance as evidence of application-level demand.