the fact that L1 gas is staying cheap while simultaneously L2s are absolutely raging and taking off is extremely bullish for Ethereum longterm
if you don't understand, i'll take the time to explain it to you:
- Ethereum ecosystem rationalization is finally happening, and many new apps don't need full L1 assurances & interoperability, but want access to ETH liquidity
- L2s have a sufficiently proven value proposition now (cheap settlement with eventually censorship-resistant access to ETH)
- so new apps are launching straight on L2s and becoming breakout successes, onboarding many times more users than they would have been able to attract on L1
- new apps on L2s still mostly use ETH as the medium of exchange and store of value asset. many L2s also use ETH for gas
- long-term, L1 blockspace will only be used for 1) very high value settlement and maximum security value storage (which will still be a strong driver for L1 blockspace demand) and 2) for L2 settlement via blobs (likely to remain cheap for a while)
this has been the thesis for a very long time, now a reality
declining L1 blockspace demand while L2s are surging shows it's now actually happening
incredible
if you don't understand, i'll take the time to explain it to you:
- Ethereum ecosystem rationalization is finally happening, and many new apps don't need full L1 assurances & interoperability, but want access to ETH liquidity
- L2s have a sufficiently proven value proposition now (cheap settlement with eventually censorship-resistant access to ETH)
- so new apps are launching straight on L2s and becoming breakout successes, onboarding many times more users than they would have been able to attract on L1
- new apps on L2s still mostly use ETH as the medium of exchange and store of value asset. many L2s also use ETH for gas
- long-term, L1 blockspace will only be used for 1) very high value settlement and maximum security value storage (which will still be a strong driver for L1 blockspace demand) and 2) for L2 settlement via blobs (likely to remain cheap for a while)
this has been the thesis for a very long time, now a reality
declining L1 blockspace demand while L2s are surging shows it's now actually happening
incredible
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