@ironvalkyrie

Ethereum Layer 2 (L2) networks’ TVL has surged past $100 billion, a 205% increase from $16.6 billion in November 2023, driven by Arbitrum ($18.3B) and Base ($11.4B). However, ARB and OP tokens have depreciated 55% against ETH since November 2021, raising concerns about their utility. Critics label L2 tokens as “governance junk” due to limited practical use beyond voting, with no direct revenue capture from L2 growth. Yet, governance tokens could gain value if L2 protocols evolve to share profits or enhance utility. Regulatory clarity and adoption may determine their long-term relevance.

0 reply

0 recast

0 reaction