Since the Dencun upgrade went live, the way we value Layer 2 solutions has shifted entirely. Do not just look at TVL that number can be faked. Look at Blob Fee Flow, the rent L2s must pay to Ethereum.
๐ธ Layer 2 networks operate by processing transactions off-chain, then bundling the data and posting it to Ethereum for security.
Pre Dencun data posting was expensive.
Post Dencun, they use Blobs cheaper storage space.
The more active an L2 is, the more Blob space they need to buy. Therefore, Higher Blob Cost = Higher Real Demand.
๐ธ Exposing Fake TVL:
Case A, an L2 has $1 Billion TVL, but pays only $50/day in Blob fees to Ethereum.
๐Money is just sitting there for yield, no one is trading, no one is using Dapps. This is Dead Money.
Case B, TVL might be lower, but Blob fees are rising constantly and taking market share.
๐This is where Retail flow is frantically trading Memes, SocialFi, NFTs. This is Living Money.
๐น Think of Ethereum as the Landlord and L2s as Tenants.
If you see a shop constantly expanding and willing to pay higher and higher rent, it proves their business is booming.
Conversely, a shop with a big sign that pays almost no rent is about to shut down.
Do not invest in ghost towns. Follow the money that is paying for security.
Do you know which Layer 2 is currently the Blob Burn King?
News is for reference, not investment advice. Please read carefully before making a decision.
