The only token to break of L2 token curse is $MNT.It trades at 2x the FDV of Arbitrum despite Arbitrum having higher TVL, more users and more maturity. L2Beat doesn't even list Mantle under rollups because of a lacking DA bridge.$260m TVL for Mantle vs $3.5B for Arbitrum shows that TVL or technical maturity for L2 tokens means little now.Market treats MNT like BNB, not a normal L2 thanks to Bybit integration, $4B treasury, CEX token features, a neobank, etc.Most importantly, Mantle runs buybacks & burns fro ...

$BASE would likely trade $3.9B - $7.3B FDV if valued at $ARB, $OP or $LINEA FDV/TVL multiples.That puts it far below $AVAX (~$14B), Hedera (~$12B), BCH (~$11B), $IP, $ENA, $UNI and others.Even with Base posting the highest L2 chain revenue ($5M last month vs $1.6M for Arbitrum), it’s not enough to command a big premium.If Base was an L1, valuation would be way higher. But they’ve been clear: Ethereum alignment is their priority.Clearly, L2 tokens are cooked.Where Base can stand out is the ecosystem moat:• C ...

MAKE L2 TOKENS GREAT AGAIN!L2 tokens are non-investible: low fee generation, no fee sharing, and governance is overvalued.Layer 2s should acquire as much $ETH as possible.It's the true Ethereum x L2 alignment:- L2 tokens act like speculative assets akin to TradFi Crypto Treasury Company stocks- They manage $ETH treasury, making governance meaningful- L2 tokens trade with $ETH price, aligning incentives but can trade at ETH reserve's premium.Current Layer 2 reserves are abysmal: Arbitrum holds just $80M, and ...

RT Ignas | DeFi (@DefiIgnas)What's the upside for L2 tokens?Fee sharing?Even if they turned on fee sharing, it's not much:Arbitrum made $19.5m in fees in a year. Optimism $18.3m.zkSync just $1.3m and Starknet $600k.This Price(FDV)-to-Fees ratio puts Arbitrum at 137.8x, and Optimism at 205.7xStarknet - 4204xIn context, TSLA trades at 187x P/E ratio so Arbitrum might even look cheap.But Tesla is an exception. S&P500 trades at ~ 29x the earnings.This makes L2 tokens overvalued by a lot. Unless we expect their ...

L2 Token Valuation - L2 tokens may be overvalued unless adoption and fees increase significantly [2] - Arbitrum's Price(FDV)-to-Fees ratio is 1378x, Optimism's is 2057x, Starknet's is 4204x [1] - Arbitrum generated $195 million in fees in a year, Optimism $183 million, zkSync $13 million, and Starknet $600 thousand [1] Token Utility and Governance - Projects issue tokens to bootstrap adoption and raise capital [2][5] - Hoarding tokens provides voting power, but projects like @lobbyfinance make bribing relatively inexpensive [2] - One user spent 5 ETH (~$10 thousand) on Lobby to acquire 193 million ARB (~$65 million) voting power [2] L2 Landscape and Investment Strategy - The goal is to attract sticky liquidity and outcompete other L2s [3] - Liquidity may concentrate in the top 20% of L2s, implying a need to wait for clear winners [3] - New L2 launches with tokens, like $INK, may prolong the emergence of clear winners [3][4] - The L2 sector is described as a "cursed sector to invest" [4]