Do We Still Need L2s Now That Ethereum Has Scaled? - Uneasy Money
Watch on YouTube ↗  |  February 07, 2026 at 16:42 UTC  |  1:22:13  |  Unchained (Chopping Block)
Speakers
Kane Warwick — Founder of Synthetix / Infinex
Taylor Monahan — Security Lead at MetaMask
Austin Griffith — Ethereum Foundation / Builder
Karl Floersch — CTO of OP Labs (Optimism)

Summary

  • The "L2 Wars" are effectively over; the market is oversaturated with 700+ L2s, most of which are zombie chains. The new directive from Vitalik Buterin and industry leaders is "Return to Mainnet" for security or use established stacks (OP Stack) rather than launching new proprietary chains.
  • Ethereum L1 scaling has outpaced expectations, making Mainnet viable again for developers, which challenges the value proposition of smaller, generic L2s.
  • A massive capital rotation is occurring toward "AI Agents" (autonomous code loops). These agents are not using Solana; they are congregating on Base (Coinbase's L2) due to tooling and liquidity, driving millions in fees.
  • The "Agent Economy" is shifting from chat-bots to autonomous financial actors that hold wallets, pay for services, and execute trades without human intervention.
Trade Ideas
Ticker Direction Speaker Thesis Time
LONG Karl Floersch
CTO of OP Labs (Optimism)
Karl explicitly says, "No more L2 protocols. Use the OP stack." Austin observes, "The AI agent meta is popping off... and the trenchers have moved to Base." The L2 market is consolidating into a "Winner Take Most" dynamic. Optimism (OP) is winning the *infrastructure* war (enterprises using OP Stack), while Base (owned by Coinbase) is winning the *application/agent* war. If AI agents are the next bull run driver and they live on Base, value accrues to the OP Superchain ecosystem. LONG. Buy the infrastructure winners of the L2 consolidation. Base does not have a token, so COIN is an imperfect proxy. OP tokenomics have historically high inflation/unlocks.
AVOID/SHORT Taylor Monahan
Security Lead at MetaMask
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. 3:25
LONG Austin Griffith
Ethereum Foundation / Builder
Austin highlights that "Clanker and Banker have done like millions and millions in fees over the last week on Base." He describes agents autonomously launching and trading tokens. This is the emergence of a new asset class: "Agentic Capital." Just as DeFi and NFTs drove previous cycles, autonomous agents launching/trading tokens is the current high-beta narrative. The tokens facilitating this (Clanker) are the "picks and shovels" of this specific mania. LONG. High-risk, high-reward play on the "AI Agent" narrative on Base. Extremely high volatility; regulatory crackdowns on autonomous financial agents; "rug pulls" by autonomous code. 1:34
LONG Austin Griffith
Ethereum Foundation / Builder
Austin mentions, "Mac minis are going crazy right now... Everyone will have their own... Mac Studios in a backpack." He describes running local, sovereign AI agents on dedicated hardware to avoid censorship (MetaMask blocking) and API costs. The shift from cloud-based AI (OpenAI APIs) to local, sovereign AI agents requires high-performance local compute with unified memory. Apple Silicon is the preferred hardware for this niche developer class. LONG. A niche but growing demand driver for high-end consumer hardware. This is a small subset of Apple's total revenue; macro consumer spending matters more.
ETH
LONG Austin Griffith
Ethereum Foundation / Builder
Austin states, "Return to mainnet. It's cheaper now... You can deploy a smart contract for like 15 cents right now." Kane notes Vitalik's pivot that Ethereum L1 is scaling faster than expected and gas limits will rise materially in 2026. The bear case for ETH was "unusable fees" driving users to alt-L1s (Solana). If L1 becomes cheap enough for innovation again, while retaining superior security and capturing rent from L2 blobs, the "ETH is obsolete" narrative collapses. Activity returning to L1 drives demand for ETH as gas. LONG. ETH reclaims market share from "ETH Killers" as the premium settlement layer. L2s continue to cannibalize revenue if blob fees remain too low to offset lost execution revenue. 2:51