Ethereum Layer 2 (L2) total value locked (TVL) has surpassed $40 billion, driven by growing adoption of scaling solutions like Arbitrum and Base, which offer faster, cheaper transactions. However, token prices, including ETH and L2 native tokens, lag behind. This disconnect stems from several factors: L2 fragmentation dilutes ETH's value capture as fees and activity shift off mainnet, reducing gas burn. L2 sequencers and native tokens also divert economic value from ETH. Additionally, TVL, while a key metric, is sensitive to market volatility and doesn’t always correlate with token price, as seen in past cycles. Broader market sentiment and macroeconomic pressures may further suppress price momentum despite L2 growth. Investors should consider transaction volumes and protocol fundamentals alongside TVL for a fuller picture.