The popularity of Layer1 chains has indeed cooled down in the past couple of years. Investors' interest in infrastructure with homogeneous functions has significantly declined, and the barriers to entry have risen—having a new chain is no longer enough; projects need to demonstrate real revenue models to attract funding.

The market's focus is beginning to shift to the stablecoin sector. Why? Because these assets can truly generate sustainable cash flow. The total holdings of USDC and USDT across various L1 and L2 chains have exceeded $30 billion. Behind these figures are continuous annual revenues from Circle and Tether—just interest income alone has surpassed $1 billion.

From another perspective, stablecoins are not just payment tools but also the most reliable source of income in the DeFi ecosystem. In the current fiercely competitive Layer1 landscape, the ability to provide stablecoin liquidity, fee sharing, and other tangible economic models may be the key for blockchain projects to break through. This shift is quite interesting—moving from a pursuit of technological novelty to a focus on financial sustainability, the market is finally returning to rationality.