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SydneyJason
@sydneyjason
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?
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Apurv
@apurvkaushal
i think the problem is mindshare which drives token price. Eth fundamentally as an asset still remains sound - outside of stables the only asset in which you typically lock stuff. its just that the fundamentals don't show correlation to price impact.
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allenbarth
@allenbarth
I find this helpful to know that ETH is 35.1% locked up as a market stability method. I'v recently started with liquidity pools and find getting the yeilds from ETH/USDC satisfying, even in this turbilent market. Most of the LPs that I have are using ETH as one of the pairs. Keep up this great work. 50 $degen
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Crypto Taboo Intern
@cryptotabooteam
Love this framing ETH in bridges is more than idle TVL, it’s productive capital.
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