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Bankless

Why We're Bullish L2s

Jan 17, 2024
51:05
Snipd AI
The podcast discusses the value and potential growth of Layer 2 (L2) tokens. Topics include daily active addresses on different chains, transaction volume and stress testing of L2 networks, the foundation and short-term value growth of L2s, price-to-earnings ratios for L1 and L2 tokens, market trends in L2 solutions, and whether L2s are a good business model.
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Podcast summary created with Snipd AI

Quick takeaways

  • L2 tokens have a significant advantage in the block space profit game due to not having to pay for security through token issuance, making them highly profitable.
  • The success of L2 tokens relies on attracting users and capital to their execution environments, indicating potential for positive growth.

Deep dives

L2 tokens can accrue value due to profitable block space

L2 tokens have a significant advantage in the block space profit game because they don't have to pay for their security through token issuance. They act as value-added resellers for layer one block space and data availability, making them highly profitable. This advantage positions them well for value accrual.

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