Expanding Ethereum L1 won't resolve its issues; the future lies beyond... - Kyle Samani (Paraphrased)
Crypto Investor Bashes Ethereum's Scaling Strategy, Puts Faith in Competitor
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Partner at crypto VC firm Multicoin Capital, Kyle Samani, has taken a swipe at Ethereum's [ETH] scaling efforts, claiming that they are zero-sum and that a competing L2, Base, will be the true future for the Ethereum ecosystem.
In a blunt Twitter post on Thursday, Samani slammed Ethereum, stating that "EVM developers are overwhelmingly building on Base," and that the future of Ethereum lies with Coinbase instead.
Samani, who has significant investment in Solana [SOL], seems to be downplaying the potential of Ethereum L1 scaling efforts and labeling Base as a superior option. He appears to view scaling Ethereum L1 as futile, focusing attention instead on a potential threat to Ethereum's dominance.
Ethereum Post-Pectra
Despite Samani's pessimistic outlook, it's worth acknowledging that Base was responsible for 42% of new code being written within the Ethereum ecosystem, according to Electric Capital's 2024 developer count report.
As a Layer 2 (L2) solution, Base currently ranks third in throughput after Solana and Internet Computer (ICP). This rapid growth and better performance have made it a popular choice among builders, causing some to view Base as a potential threat to Ethereum.
Base founder, Jesse Pollak, disputes this notion, emphasizing the close relationship between Base and Ethereum. He claims that Ethereum is essentially a critical provider of services for Base, and that the L2 solution is driving significant value back into the Ethereum ecosystem while onboarding millions of users and thousands of developers.
Although Ethereum boasts nearly 20 times more TVL (Total Value Locked) compared to Base, the L2 has managed to outpace its big brother in terms of address activity [1]. Base has also been closing the gap on fees, revenue, and DEX volume, as evidenced by data from Artemis.
ETH's price has soared by 38% in the past 48 hours, temporarily touching $2.5K—a level not seen since March. If the bullish trend continues, Ethereum could challenge $2.7K and $2.8K, which also serve as the 200DMA and a bearish order block [1]. Will Ethereum's recent surge mark the beginning of a broader recovery? Take our survey for a chance to win $500 USDT.
[1] Source: TradingView[2] "Layer 1 Scaling Solutions: Advantages, Focus, and Concerns" - Enrichment Data[3] "Layer 2 Scaling Solutions: Role, Concerns, and Alignment" - Enrichment Data[4] "Ethereum's Layer 2 Evolution and the Role of Scaling Solutions in its Ecosystem" - Enrichment Data
- Kyle Samani, a partner at crypto VC firm Multicoin Capital, has criticized Ethereum's [ETH] scaling strategy, favoring the L2 solution, Base, over Ethereum L1.
- In a Twitter post, Samani, who invests in Solana [SOL], suggested that Base might prove to be a superior scaling option for the Ethereum ecosystem.
- Despite Samani's discrediting of Ethereum's L1 scaling efforts, Base was responsible for 42% of new code written within the Ethereum ecosystem in 2024, according to Electric Capital's developer count report.
- As a Layer 2 (L2) solution, Base currently ranks third in throughput after Solana and Internet Computer (ICP), making it a potential threat to Ethereum.
- Base founder, Jesse Pollak, emphasized the close relationship between Base and Ethereum, stating that Ethereum is a critical provider of services for Base and that the L2 solution is driving significant value back into the Ethereum ecosystem.
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