1/ Great study via @sebastianhrw on #Ethereum's top 250 ERC20s, investigating the fat protocols thesis via value accrual in 4 layers of the stack. medium.com/@sebastianhrw/… 
2/ "The total market cap of these projects was about 10b, so compared to the ~20b of Ethereum, the initial premise of the Fat Protocol thesis seems to hold true." -@sebastianhrw
3/ While highest up the stack, "67% of the projects are being developed on the application layer (layer 4)" medium.com/@sebastianhrw/… (note: graph is by *number* of projects)
4/ When turning to network value, #Ethereum's layer 2 and layer 3 projects trade at about 2x the value of the average project. medium.com/@sebastianhrw/… (note: graph is by *network value* of projects)
5/ "Projects on higher layers hold more market cap in aggregate, but projects on lower layers have the higher average market cap." -@sebastianhrw medium.com/@sebastianhrw/…
6/ My own two sats: Layer 4 projects are juicier to market to the masses (more easily comprehensible), hence an explosion of them last year.
Even though we are too earlier in the adoption cycle for most of these layer 4's to be viable (hence the low network values now).
Even though we are too earlier in the adoption cycle for most of these layer 4's to be viable (hence the low network values now).
7/ #Ethereum's lower layer projects are more technical, market well only to geeks, and thus fewer founders brave those waters.
Those that have are being rewarded with larger network values, supported by real utility or discounted expectations of real utility around the corner.
Those that have are being rewarded with larger network values, supported by real utility or discounted expectations of real utility around the corner.
8/ Thanks @sebastianhrw for your work!
