Thread by @VivekVentures

2021 was won by alt L1s b/c rollup scaling on ETH moved too slowly

Web3 went mainstream with NFTs, gaming, DeFi 2.0

Blockspace supply on ETH remained scarce while demand blossomed. Excess demand went to alt L1s

But 2022 belongs to ETH and its rollup ecosystem:

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https://twitter.com/vivekventures/status/1381970900925493252

While alt L1s made blockchains cheaper and more accessible in 2021, they took shortcuts to scale and will hit structural limits

Optimistic rollups are ready for the mainstream spotlight, and the ZK rollup cavalry is on the way (Polygon, Starknet, zkSync, and others)

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There are two catalysts for ETH to go parabolic in 2022:

1) Rollups launch tokens.

Tokens represent incentives and community upside. Alt L1s won marketshare in 2021 because of tokens that went up. Rollups will follow the same playbook and bring users back to Ethereum

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2) The Merge

This is the biggest catalyst for all of crypto. The supply shock (90% drop in issuance), shift to proof of stake, and spike in staking yield will make ETH an institutional reserve asset competing with BTC.

A true triple halvening (h/t @SquishChaos)

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What else needs to happen?

- Direct on-ramps from exchanges to L2s. The ethereum base layer should be abstracted away for most users. Nobody knows they use TCP/IP on web2; nobody should know they’re using Ethereum on web3

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- Marketing and BD. Alt L1s did a fantastic job with smear campaigns against ETH in 2021. Ethereum can’t be complacent against FUD (especially when it is false). We need to educate individuals, corporations, countries why to settle on the most decentralized L1.

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- Rapid R&D and rollout of (ideally EVM comparable) zk rollups. Polygon has quadrupled down on this roadmap. Starknet, zkSync etc are full steam ahead. We need ZK rollups ASAP as they represent the endgame for Ethereum:

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Ethereum will be both an ultra scalable platform that all users can participate in for minimal fees

And also the most decentralized (easiest to run a node), most non-corruptible, most secure (highest cost to attack) settlement layer to support its rollup ecosystem

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This is how ETH will win.

And 2022 is the year that this vision becomes reality.

Happy new year 😎

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#Ethereum $ETH #Arbitrum #Optimism #Polygon $MATIC #StarkNet #Starkware #L222

Haha 69 😇