Ignas | DeFi on Warpcast

Ignas | DeFi pfp

Valuing L1s based only on fees is shortsighted. If that was the case, $TRX should trade higher than $ETH. But it's not. Decentralization (meaning security), dev activity, TVL, ecosystem maturity, tokenomics... all these factors matter. Opinions that ETH is dumping because fees are dropping as activity shifts to L2s are getting louder. Standard Chartered cut ETH price forecast from $10k to $4k because fees were outsourced to L2s. Sure, fees matter, but if they were the only factor, BTC would trade lower than ETH. But it's not. For some, ETH is money as pristine and yield-bearing collateral in DeFi (like Maker and Ethena). For others. ETH serves as a store of value differently from BTC. While BTC hedges against macro instability and money printing, ETH is a store of value in the digital economy. A stable macro environment and fiscal prudence risk BTC but not ETH.

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Ignas | DeFi pfp

For those like me, ETH, SOL and other L1 tokens are productive assets. I use them to farm ecosystem token airdrops while benefiting from L1 price appreciation if the ecosystem expands. I know it's speculative, but it has nonetheless helped me outperform pure ETH spot price. Tron's $TRX is none of the above things even it generates higher fees. Many are likely bearish and selling ETH because of the low fees. However, this is a natural shift in the narrative from viewing ETH solely as digital oil to recognizing its value beyond just being a fee generating database.

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CryptoPlaza🎩Ⓜ️💜 OG449 pfp

CryptoPlaza🎩Ⓜ️💜 OG449

There’s no debate about the tremendous value the Ethereum ecosystem is creating. But value creation doesn’t always translate into asset/token prices. There are countless examples of this — just look at the foundational protocols that support the internet. They’ve brought immense recognition to their developers, but little direct financial return. Open Source projects are another clear example. Back in August 2024, I wrote about how Ethereum’s demand had deteriorated. While fees alone may not be enough to explain Ethereum’s valuation, the drop in ETH demand from $50 million per day to under $500K must be reflected in price, as the market seeks a new equilibrium. EIP-4844 triggered a collapse in this demand. Although there was a slight recovery towards the end of the year, the release of the new Uniswap version ultimately caused another major drop. One could have expected that lower fees might revive mainnet activity, but the reality is that most of it has shifted to L2s.

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jayplayco pfp

Tron is a CEX player. A successful one, but still a CEX player.

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