Ethereum’s Value Gap: Layer 2 Growth Outpaces Main Network

Despite leading in stablecoin and tokenization activity, Ethereum’s network is experiencing a disconnect with its value. While Layer 2 solutions like Base, Arbitrum, and Optimism thrive, main network activity has declined compared to previous years. A key contributing factor appears to be Ethereum’s shift towards scaling via Layer 2, leading to decreased fees on the main chain. This results in a leakage of value from the network with minimal return for ETH itself.