📝 Executive Summary
Rather than competing directly with faster chains, some builders argue Ethereum's strength lies in supporting the layer-2 networks where trading is taking place.
Ethereum’s role is shifting to support layer-2 networks as crypto perpetual futures trading volumes surge, with builders seeing settlement infrastructure as its main pitch.
The article highlights a boom in crypto perpetual futures and a shift in Ethereum's role towards supporting layer-2 networks where this trading occurs. Builders argue Ethereum's strength lies in providing settlement and security, not direct transaction processing. This could reshape ETH's demand dynamics, reducing gas fee reliance but bolstering its infrastructure value.
It may reduce direct demand for ETH as a transactional currency, but strengthen its role as a staked settlement asset. If L2s increasingly use Ethereum for data availability and finality, ETH could become more valuable as core infrastructure.
Trading activity is moving to L2s, so Ethereum mainnet may see fewer direct transactions. However, L2s still settle on Ethereum, so demand for ETH for settlement and staking could increase.
Rather than competing directly with faster chains, some builders argue Ethereum's strength lies in supporting the layer-2 networks where trading is taking place.
Growing institutional and retail interest in crypto derivatives, combined with the availability of high-leverage trading, is fueling volume. Layer-2 networks offer lower fees and faster execution, attracting traders away from exchanges.
As trading volumes surge on L2s, Ethereum’s mainnet cannot match their speed or cost. Builders now see Ethereum’s strength as providing security and finality to these L2s, rather than hosting transactions directly.
It could reduce direct ETH demand for gas fees, but increase its value as a staked settlement layer. If L2s adopt Ethereum for data availability and security, ETH may become a critical infrastructure asset.