Layer 2 growth is an optimistic indication for $ETH holders, but the major question is how much of the value stays with ETH and flows into L2 tokens such as $MATIC, $ARB, and $OP.
🔹 Reasons to hold $ETH

✅ Ethereum continues to safeguard the network as L2s settle transactions on it, making it important.
✅ Is there an upcoming ETH ETF? - If authorized, demand might increase significantly.
✅ Deflationary ETH: With EIP-1559 and staking, the supply of ETH is decreasing over time.

Reasons to Diversify:

⚠️ Some L2 tokens may beat ETH in the short run owing to direct adoption.
Competition from Solana, Avalanche, and other chains may challenge ETH's supremacy.
⚠️ Regulation risks: SEC attention on Ethereum may impact price action.

🚀 If you believe in Ethereum's long-term prospects, it $ETH is a great investment. However, if you desire a greater risk/reward ratio, allocating some to L2s such as $ARB, $MATIC, and $OP might be a wise move.

What is your strategy? Diamond hands or seeking for rotation? 💎🔥
#holdETH