
Yosra
962 posts

Yosra
@FigmaGirl
discipline is the divider of dreams




Here's the honest truth about L2s : Most of the valuations these projects have raised at are completely untethered from reality. I don't know how these teams were able to justify valuations at the levels they did - especially when the primary differentiation came down to the type of proof, or the virtual machine execution environment. With Optimism & Arbitrum being early to the game they were able to gather enough TVL & activity to convince the market to stomach several massive unlocks and still remain above their last private valuations prior to launch ($1.65bn & $1.2bn) However, looking at STRK, which raised its last private round at $8bn, its now trading below that, at $6.9bn FDV, with many unlocks still to come. It seems liquid markets are quick to correct the valuations of these things. L2s are definitely important to the overall Ethereum roadmap, but also they're becoming increasingly commoditized, and that is now reflected in valuations. L2s will live or die by their network effects, and today many fail to structure themselves in a way that reflects that. Yeah, getting an airdrop is great, but getting diluted and dumped on through unlocks while holding zero-utility tokens is a dumb game to play - hence why you see people using many of these overvalued chains strictly for farming purposes. This valuation correction is a necessary one. It's now a death wish to raise at an unsustainable valuation. There are simply few to no nominal buyers of these useless coins The good news is that the valuation correction will make it easier to separate winners from losers. Winners will be those who structure their L2 so that users are rewarded in a symmetric reflexive manner. Would really suggest people take a look at what @swellnetworkio is doing with their L2 - native LRT as their gas token (rswETH) - native gov token (SWELL) will be able to be staked to receive sequencer fees - curating an ecosystem of Dapps related to restaking - deploying their rollup through AltLayer (a RaaS provider that is also an AVS) (read our full report on them here x.com/Kairos_Res/sta… ) Going forward, I suspect most successful L2s will be sector/application focused, who also reward their users in a symmetric manner. Otherwise, projects will just get lost in a crowded world of general purpose L2 and have their token (their primary incentive mech) slowly bleed to zero as their "community" vanishes.







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