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Hey there, crypto enthusiasts! If you’ve been keeping an eye on the blockchain space, you’ve probably noticed how much money is pouring in—and where it’s actually sticking. A recent tweet from Token Terminal dropped some fascinating stats that got us thinking about blockchain switching costs and value capture. Let’s break it down together!

The Big Picture: $100B in VC Funding

According to Token Terminal, around $100 billion in venture capital has flowed into the crypto world through approximately 6,000 investment rounds. That’s a massive amount of cash aimed at fueling innovation across thousands of blockchain projects. But here’s the kicker: despite all that funding, only three chains have managed to rack up $20 billion or more in Ecosystem Total Value Locked (TVL). TVL, for those new to the term, is basically the total amount of assets locked in a blockchain’s decentralized finance (DeFi) protocols—a key indicator of a chain’s health and adoption.

So, what does this tell us? It suggests that while the crypto space is buzzing with activity, the benefits aren’t evenly spread. A handful of blockchains are dominating, leaving others scrambling to catch up. This uneven distribution hints at something deeper—let’s dig into the concepts of switching costs and value capture to understand why.

What Are Switching Costs in Blockchain?

Switching costs refer to the hurdles users face when moving from one blockchain to another. Imagine you’ve built a business or invested heavily in a specific ecosystem—like developing apps on Ethereum or staking assets on Solana. Moving to a new chain means rethinking your strategy, migrating assets, and potentially losing network effects (the value that comes from having a large user base). These costs can be financial, technical, or even social, making it tough for users to jump ship.

For example, the tweet thread mentions TRON, where quarterly USDT transfer volume hit an all-time high of $1.93 trillion in Q2 2025 (check out the chart below!). This kind of success shows how entrenched TRON has become for USDT transactions, creating a sticky ecosystem that’s hard to leave.

Value Capture: Who’s Winning?

Value capture is all about which blockchains are actually holding onto that $100 billion investment in a meaningful way. The fact that only three chains have $20B+ in TVL suggests they’ve figured out how to lock in users and developers. This could be due to better infrastructure, lower fees, faster transactions, or strong community support.

Take Solana as an example—another post in the thread highlights how the Y Combinator-backed Axiom Exchange is generating ~$1.7 million in revenue per day on Solana. That’s a sign of a thriving ecosystem where value is being captured and reinvested. Meanwhile, chains with lower TVL might struggle to retain users, especially if switching costs keep people loyal to the big players.

Why It Matters for Meme Tokens and Beyond

At Meme Insider, we’re all about tracking the latest trends in meme tokens and blockchain tech. This data is a goldmine for understanding where the action is—and where meme token projects might find the best footing. If you’re a blockchain practitioner or developer, focusing on chains with high TVL and low switching costs could be a smart move to maximize impact.

What’s Next?

The crypto landscape is evolving fast, and these insights from Token Terminal are just the tip of the iceberg. Keep an eye on how VC funding continues to shape the top chains, and let us know your thoughts! Are you betting on a new contender to break into the $20B TVL club? Drop your predictions in the comments, and stay tuned to Meme Insider for more deep dives into the world of blockchain and meme tokens!