Nick Tomaino, founder of the venture fund 1Confirmation, shared his thoughts on how Ethereum Layer 2 (L2) positively impacts the Ether (ETH) price. He noted that skeptics are mistaken in believing that L2s siphon liquidity away from the main chain. The article presents the key arguments against this perspective.
Positive Impact of L2 on Ether
Tomaino asserts that Ethereum L2s are generally positive for Ether, as evidenced by his recent post on X (formerly Twitter). He suggests that the current wave of L2 adoption strengthens Ethereum's status as an internet-native store of value.
Coinbase Case and App-Specific Chains
Tomaino cited Coinbase, the leading U.S. exchange that generates significant revenue from ETH. He discussed how Coinbase has developed an app-specific chain based on Ethereum, thereby promoting L2 technologies to its advantage. According to Tomaino, app-specific chains are the endgame for major crypto applications.
ETH Token Burning Through Ethereum Activity
According to Tomaino, the EIP-1559 protocol enables activity in Ethereum-based blockchains to contribute to the burning of ETH tokens. This is an important factor that debunks the myth that L2's success negatively affects Ethereum and Ether.
Overall, Tomaino and his followers agree that the adoption of Ethereum L2 plays a positive role in the Ethereum ecosystem, enhancing its position as a reliable and stable asset.