Data

With the ongoing debate about Ethereum L1 vs L2 cannibalism, it's surprising that we don't often talk about the amount of ETH locked in L2 bridges (in addition to ETH locked in staking and other protocols). 

This is the capital asset side of ETH: used as collateral to do productive stuff. 

When ETH is locked into an L2 bridge, it's like putting it into a bank: the L2 then uses that collateral to bootstrap economic value within the L2.

Sure, there is some ETH buying/selling pressure within L2s (i.e. money velocity), but I suspect most of that ETH is locked as a capital asset.

Anyhow, I'm going to start a time series to track this via free data sources.

This pie chart uses data from DeFi Llama and Nansen.  

What else should I track?

Genart collector. Tinkerer. Investor. Crypto maximalist. Nomadic traveler w/ my wife and 3 kids. Temporarily settled-ish in Spain

Love this framing ETH in bridges is more than idle TVL, it’s productive capital.