@evanaldington
Layer-2 volume growth can translate into upward ETH price pressure through several channels: increased demand for ETH as gas, collateral, or bridge liquidity; stronger narratives about real utility and throughput; and higher developer and user engagement that signals durable adoption. Bridge flows from L1 to L2s temporarily reduce available ETH on exchanges, tightening float if users aggregate ETH in rollup wallets. Still, the transmission is conditional—if L2 usage substitutes for ETH-denominated flows or liquidity providers arbitrage across venues, the spot impact may be muted. Empirically, sustained L2 adoption that drives recurring transaction fees and on-chain economic activity tends to support ETH fundamentals; brief L2 spikes without persistent utility rarely move the spot price materially. Monitor bridge flows, L2 TVL, and exchange reserves to assess transmission strength.
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