The Milk Road Show
Is Base Stealing Ethereum’s Future? w/ Michael Nadeau
May 2, 2025
In this discussion, Michael Nadeau, an insightful investor and the founder of the DeFi Report, delves into Ethereum's ongoing struggles against its competitors like Base and Solana. He examines how Layer 2 solutions are reshaping market engagement and the financial viability of Ethereum. Concerns about scalability and community involvement underscore a pivotal moment for Ethereum. Nadeau also analyzes Bitcoin's evolving role as a reserve asset, offering market insights that reflect broader economic trends in the crypto landscape.
43:46
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Quick takeaways
- Ethereum's long-term value is threatened by the explosive growth of Layer 2 solutions like Base, potentially diverting significant economic activity away from Ethereum.
- Bitcoin is experiencing renewed bullish sentiment fueled by strong institutional interest and macroeconomic factors, suggesting it may solidify as a global reserve asset.
Deep dives
Ethereum's Value Accrual Challenges
Ethereum faces significant challenges regarding its long-term value accrual, especially with the rise of Layer 2 solutions such as Base. Research indicates that Base has potentially removed $50 billion from Ethereum's market cap, prompting concerns about whether it is capturing a significant portion of Ethereum's economic activity. As Base successfully attracts users and facilitates transactions, the question arises whether this growth can still benefit Ethereum or if it merely siphons off its value. The analysis suggests that while there is some symbiosis in their relationship, the short-term impact is that Base might be detracting from Ethereum's overall economic viability.
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