Application Layer Value

Definition ∞ Application Layer Value denotes the utility and economic worth generated by decentralized applications (dApps) and services operating on top of a blockchain protocol. This value arises from the practical functions, user engagement, and transactional activity facilitated by these applications. It reflects the direct benefits users derive from interacting with specific platforms built upon the underlying network infrastructure.
Context ∞ In the digital asset ecosystem, understanding application layer value is crucial for assessing the long-term viability and utility of various blockchain projects. News reports often analyze this metric to gauge user adoption, developer activity, and the overall health of a network’s ecosystem beyond its base protocol. The growth of this value is a significant indicator of a blockchain’s real-world impact and broader acceptance.