📊｜ETH at sunset?

📌With the continuous development of the Ethereum network and the increase in the number of users, its transaction speed and expansion problems have gradually become prominent. To solve these problems, L2 solutions emerged. L2 tokens, such as Arbitrum (ARB) and Optimism (OP), effectively improve the transaction speed and scalability of Ethereum by using technologies such as side chains, state channels, or zero-knowledge proofs.

🔻Although the current data shows that the overall performance of ETH L2 is now declining, $OP , $ARB , etc. have all fallen back to the prices during the bear market last year.

🔻But over 60% of DeFi’s total value locked is on Ethereum, proving that Ethereum is the foundation for countless applications and chains. Ethereum is scaling with L2s like Base, which has seen widespread adoption this year and offers users significantly lower gas fees thanks to the recent Dencun upgrade.

Although the performance of L2 is now declining, the Ethereum system still accounts for a quarter of the encryption market. Except for BTC, no ecosystem has the market share of ETH

♦️To sum up, for investors, both Ethereum and L2 tokens have significant investment potential. Ethereum is the core foundation of the entire blockchain ecosystem, and its long-term value is obvious. L2 tokens, as a key element of scalability in the Ethereum ecosystem, also have huge growth potential. Given that the current role of L2 tokens in the Ethereum network may be undervalued by the market, this may provide additional investment opportunities for investors.

Ethereum remains the dominant force in the cryptocurrency space

🔹Picture source: @Eric SJ