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Feb 11
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AVOID
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Giver
Macro Analyst / Guest
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The market has rejected the "17th L2." Previous cycles of high-FDV altcoins and diluted memecoins have left investors fatigued. There is no organic demand for generic blockspace or governance tokens that offer no differentiation. The market has "solved" crypto and realized most projects are unnecessary. Without a specific narrative (like AI agents), these assets have no bid. Capital will concentrate in leaders (BTC) or new narratives (AI), leaving zombie chains to bleed. A sudden return of "Alt Season" liquidity driven by retail mania, though Giver views this as unlikely in the current regime. |
Thread Guy
The Financial Market Is About To Change FOREV...
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Feb 07
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AVOID/SHORT
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Taylor Monahan
Security Lead at MetaMask
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Taylor states, "You should not create another freaking L2... we're past the point of healthy competition." Kane notes the market is "pricing these all at zero." With 700+ L2s and liquidity fragmentation, users and liquidity will flee "ghost town" chains. Without a unique differentiator (like Base's distribution or OP's stack), generic L2 tokens have no value proposition against a cheaper Ethereum Mainnet. AVOID. Capital will rotate out of mid-cap L2s back into ETH or the top 2 dominant L2s. A specific L2 might pivot successfully to a niche "AppChain" model (gaming/identity) and survive. |
Unchained (Chopping Block)
Do We Still Need L2s Now That Ethereum Has Sc...
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