@knylotjkk

Investors may view Layer 2s as leveraged exposure to Ethereum adoption, since their success depends on Ethereum’s security and credibility while benefiting directly from increased usage. However, this also introduces competition with Layer 1 in terms of narrative: Ethereum shifts from being “the world computer” to being the backbone infrastructure, while L2s become the visible application layer. The question becomes whether value accrues more to the base asset (ETH) or to the L2 networks built on top.

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