According to BlockBeats, the dominance of Ethereum smart contracts has been challenged, and the community advocates prioritizing the improvement of L1 execution layer technology. This will have a significant impact on the network and ETH infrastructure protocol revenue.

Over the past four years, Ethereum L1 daily transaction volume has been stable, but transaction fee revenue has dropped significantly. Although L2 transaction volume has increased, Ethereum's revenue from it is limited.

Ethereum’s rollup roadmap provides cheap data storage for L2, but the benefits are limited. L2 users lack the security guarantees of Ethereum’s L1, where transactions are processed by decentralized validators.

Ethereum’s settlement guarantees are a strength that many ecosystem thinkers believe should be combined with improved L1 execution. While requiring controversial changes, such upgrades could reinvigorate Ethereum L1’s position as a platform for financial transactions.

The market's forward-looking nature allows investors to position themselves in advance, and LDO's recent strong performance indicates that investors are optimistic about its prospects. The renewed focus on execution will drive more transactions to Ethereum L1, increase total transaction fees, and boost Lido's revenue.

If Ethereum L1 demand increases and ETH prices rise, Lido will benefit more. Although the discussion is still in the early stages, these shifts could revitalize L1 and make it a place where users are willing to pay transaction fees, and LDO is expected to perform well.