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Ethereum and L2 inflows are dominating as the growth of stablecoins and RWAs accelerates. INTERNET CAPITAL MARKETS
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A few of the craziest false narratives that haters and losers have spread about Ethereum recently: “L2 are bad for ETH” L2s grow the developer network effect, enable apps that distribute ETH as a store of value and burn ETH. “Ethereum is controlled by the Ethereum Foundation” Bitcoin and Ethereum have the same governance: rough consensus amongst developers, miners and users X “Ethereum is slow and expensive” Ethereum’s scaling roadmap is many years ahead of every competitor. “The future of Ethereum is Coinbase” The future of the S&P 500 is Ethereum. Every large company is building stablecoins, DeFi, NFTs and more on Ethereum because it’s the most credibly neutral chain for builders.
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A few of the craziest false narratives that haters and losers have spread about Ethereum recently: “L2 are bad for ETH” L2s grow the developer network effect, enables apps that distribute ETH as a store of value and burn ETH. “Ethereum is controlled by the Ethereum Foundation” Bitcoin and Ethereum have the same governance: rough consensus amongst developers, miners and users X “Ethereum is slow and expensive” Ethereum’s scaling roadmap is many years ahead of every competitor. “The future of Ethereum is Coinbase” The future of the S&P 500 is Ethereum. Every large company is building stablecoins, DeFi, NFTs and more on Ethereum because it’s the most credibly neutral chain for builders.
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L2s FOR DUMMIES A layer 2 blockchain (L2) is a chain that processes transactions off the main chain (L1) then batches them together to settle on the main chain. Fees are paid by the L2 to settle on the main chain. Ethereum pioneered the concept to allow for social and technical scalability of the network. Base, Arbitrum, OP, Unichain, World Chain, Starknet, and ZK Sync are leading L2s on Ethereum today. All these chains and the apps built on them grow the network effect of EVM, distribute ETH as a store of value and burn ETH. The L2 architecture gives builders self sovereignty while also benefiting from the network effect of the L1. All competing L1s will eventually recognize this, they’re just many years behind Ethereum.
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There is real fear that the U.S government debt situation could get a lot worse soon. Unlike every U.S. president in history, Trump has stopped pretending it doesn't exist and is no longer attempting to keep the system propped up at any cost. This is why BTC and ETH were up and S&P was down last week. There's no guarantee that outperformance will continue, but it's also quite possible the entire world finally starts to really understand the purpose of a credibly neutral store of value.
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