Cryptocurrency VCs believe that the efforts to scale Ethereum are a zero-sum game.
ETH prices reached a two-month high and could target $2,700-$2,800 if investor sentiment continues to rise.
The recent Pectra upgrade and Ethereum's [ETH] L1 expansion efforts could be a zero-sum game, according to Kyle Samani, a partner at the cryptocurrency VC firm Multicoin Capital.
In a post on X (formerly known as Twitter), Samani pointed out that Base is a significant competitor and beneficiary of Ethereum L1.
“Scaling Ethereum L1 will not solve Ethereum's problems. The issue is that EVM developers are primarily building on Base. The future of Ethereum is Coinbase.”
Samani has downgraded the future L1 outlook for Ethereum, suggesting it is less attractive compared to Base.
Ethereum after the Pectra upgrade
It should be noted that Samani's Multicoin Capital has invested heavily in Solana [SOL]. So, is the criticism objective?
According to Electric Capital's 2024 developer report, Base accounts for 42% of the new code written in the Ethereum ecosystem.
Base is Ethereum L2 but faster than L1 and ranks third in throughput after Solana and Internet Computer (ICP).
In fact, from a developer interest perspective, a16z's 2024 report ranks Base third behind Ethereum and Solana.
Source: a16z
Simply put, Base is developing impressively and that may be why some people see it as a threat to Ethereum.
But Base founder Jesse Pollak dismissed this view and said,
“Base is probably the largest single customer of Ethereum in the world. We derive a lot of value and we also provide value. And we are bringing millions of people (and tens of thousands of developers) onto the chain.”
Source: Artemis
Although Ethereum has a TVL (Total Value Locked) nearly 20 times that of Base, L2 has surpassed it in address activity.
Furthermore, Base has narrowed the gap in fees, revenue, and DEX volume, according to data from Artemis.
However, on the price chart, ETH has risen 38% in the past 48 hours and is nearing $2,500 for the first time since March.
It temporarily dropped to $2,300 at the time of writing. If investor sentiment continues, ETH's next targets will be $2,700 and $2,800, coinciding with D1MA (Daily Moving Average) and the bearish order block (blue).
Source: ETH/USDT, TradingView
Source: https://tintucbitcoin.com/ethereum-l1-khong-du-tuong-lai-la-gi/
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