Endgame for Ethereum (ETH) Indicated by Paradigm's Former Andrew Huang
07/01/2024 21:36
Becoming public good that maximizes decentralization should be focus for Ethereum (ETH) ecosystem, Conduit founder says
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Andrew Huang, founder of Paradigm-backed Conduit platform, is sure that Ethereum's L2s should be able to cheaply inherit its level of decentralization. This accomplishment should be the only endgame status for Ethereum (ETH), the entrepreneur stressed.
"Native currency of Internet": Andrew Huang on Ethereum's (ETH) endgame goal
Ethereum (ETH), the largest smart contract platform, should pursue the goal of becoming a public good that maximizes decentralization. All of its L2s should be able to inherit the same level of decentralization in a cost-effective manner.
— Andrew Huang ⚡️⛓️ (@KAndrewHuang) July 1, 2024The end game for ethereum is to be a public good that maximizes decentralization that a flourishing ecosystem of l2s and beyond can inherit cheaply
Creating artificial bottlenecks that limit what can be built or efforts to maximize fee accrual to L1 are IMO missing an… https://t.co/kHmyFgYYdO
At the same time, creating artificial bottlenecks for L1/L1 interaction or maximizing fee transfer to L1 nodes is "missing an opportunity" for Huang.
Meanwhile, the "biggest opportunity" for Ethereum (ETH) remains its unique status as a native currency of the internet, Conduit's founder concluded.
With the tweet, Huang responded to the analysis of Paradigm CTO Georgios Konstantopoulos. Konstantopoulos highlighted that "forcing market structures" and overthinking might not be good for the progress of L2s. Instead, L2 networks should only be focused on optimal upgradeability and accessibility, while "interoperability" still looks like a made-up problem to him.
In this scheme, Ethereum's L1 should work like a data availability layer for EVM networks, the Paradigm CTO added.
Arbitrum (ARB) loses L2 dominance, TVL share dips below 40%
Ether (ETH) is changing hands at $3,462, up 2% in the last 24 hours. Trading volume jumped by 57% overnight and exceeded $10 billion, CoinMarketCap data shows.
Meanwhile, USD-denominated total value locked in Ethereum's L2s ecosystem is expanding its drop. In the past month, it fell from $49.3 billion to $42.1 billion, per L2Beat.
Arbitrum (ARB), an undisputed leader by TVL, is losing its traction: its dominance plunged below 40%, while its closest competitor, Base (BASE), almost reached 17%.
OP Mainnet is attempting to hold above the $15 billion level, while recent newsmaker Blast (BLAST) is responsible for 6.9% of TVL in Ethereum's L2 ecosystem.