Arthur Hayes said the old flywheel-driven growth model is likely much harder to replicate going forward, arguing that crypto applications need users who continue paying even when market conditions weaken. YZi Labs posted on X.

He said that when application revenue depends too heavily on market activity, it becomes difficult to distinguish lasting demand from broader market beta. Hayes added that the next generation of applications needs a demand floor, with users willing to pay regardless of the cycle.

He said the move from cycle-driven activity to more persistent demand would make crypto applications easier to forecast and underwrite, which could broaden the investable market for them.