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How Does the Fee Market on a Blockchain Influence the Choice of Platform for Launching a New DeFi Protocol?

High fees restrict user adoption, pushing new DeFi protocols to launch on lower-fee Layer 2 or competing Layer 1 platforms for better accessibility.
Greeks.Live18.11.25

How Does the Fee Market on a Blockchain Influence the Choice of Platform for Launching a New DeFi Protocol?

A high fee market can deter potential users from interacting with a new DeFi protocol, making a high-fee blockchain less attractive for launch. Protocols often choose platforms with lower, more stable fees (like L2s or competing L1s) to ensure broad accessibility and better user experience.

The fee market directly impacts the total addressable market and the viability of micro-transactions within the protocol.

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