According to DeepChao TechFlow, Layer 2 (L2) solutions on Ethereum have made significant progress in the past few years, with the total lock-up volume (TVL) exceeding $40 billion, compared with only 10 billion a year ago. Dollar. However, despite L2’s huge advances in technology and usage, the L2 token has generally performed poorly as a liquid investment. Two years ago, the only L2 listed were Optimism and Polygon, whose fully diluted valuation (FDV) accounted for 8% of ETH, and now we have L2 projects such as Arbitrum, Starkware, zkSync, etc., whose FDV accounted for 9% of ETH. %. Every new L2 token listed actually dilutes the valuation of the previously listed L2 tokens. Currently, the total FDV of major L2 tokens is approximately $40 billion, with annualized fees of $40 million and a valuation multiple of approximately 1,000x. This is in stark contrast to large DeFi protocols, which typically trade at valuation multiples between 15-60x. As more L2 projects come to market, the FDV of L2 tokens may continue to come under pressure and dilution.
