Explain the ‘Flywheel Effect’ in a DApp Ecosystem

The flywheel effect describes a self-reinforcing loop where success in one area drives success in another, creating exponential growth. In DApps, this means more users attract more developers, who build better DApps.

These better DApps attract even more users and capital (TVL). This continuous loop increases utility, network security, and asset value, accelerating the overall network effect.