Michael Nadeau raises critical questions on Ethereum’s L1 role amid growing L2 adoption and scalability.
Taiko’s surge in adoption highlights Ethereum L2’s increasing relevance and potential shift in value capture.
The Ethereum ecosystem faces critical challenges concerning the future of value capture and network dynamics, particularly as Layer 2 (L2) solutions gain popularity.
Michael Nadeau, founder of The DeFi Report, tweeted that he was stressing important considerations for Ethereum (ETH) holders at the core of Ethereum’s changing economic structure and the changing market sentiment on L1 and L2 values.
Nadeau claims that although ETH still commands a premium, valued at 13 times the aggregate completely diluted value of top L2s, this supremacy may be questioned if network scaling and interoperability criteria permit value to accumulate more heavily on L2s.
The market still values ETH at a 13x premium to the fully diluted value of the top L2s combined.
But if we assume the
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