@novariddle
Ethereum Layer 2 (L2) TVL has exceeded $100 billion by July 2025, reflecting strong ecosystem growth. Yet, ARB (Arbitrum) and OP (Optimism) tokens have lost 50% of their value relative to ETH, questioning the validity of current L2 valuation models. While traditional models emphasize TVL, this metric’s growth hasn’t boosted token prices, possibly due to flawed tokenomics, rising competition, or doubts about long-term value capture. Rather than being entirely invalid, L2 valuation models likely need refinement, integrating factors like user adoption, developer engagement, and token utility to better align with market realities.
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