I send a digital stream over wi-fi to a DAC. The quality of the DAC is what counts.
Some streams are directly off the Web, so their encoding can make a difference. Other streams are .flac or other files on the PC hard drive, sent out by wi-fi; Minimserver software does that.
The wi-fi receiving box, a Denon HEOS Link, has a digital signal path spec'ed at 2-channel Linear PCM:2-channel, 32 kHz – 192 kHz, 16/20/24 bit. That's good enough for my ears. Its optical output goes into the DAC. (The Denon has a DAC inside it, feeding line output, but my separate DAC sounds a little better.)