The L2 Paradox: Why Ethereum’s Scaling Isn’t Boosting Token Value

• Ethereum L2 tokens experienced widespread double-digit declines over the past month.
• Earlier, Buterin questioned whether Ethereum’s original L2 roadmap still makes sense.
• Upgrades like shared sequencing or interoperability may end up improving token economics. 

According to CryptoRank’s market cap fluctuation data, Ethereum Layer 2 tokens experienced widespread double-digit declines over the past month. MEGA leads the downturn at -34.8%, followed by ZK at -27.3%, STRK at -22%, and OP at -19.5%.

Those are just the tokens that dropped the most. Nearly all major Ethereum L2 governance tokens took a hit over the last month, even though the overall scaling ecosystem kept growing.

Normally, investors expect that more users translate to more activity, and more activity would push token prices up. Transaction counts are up, new apps keep launching, TVL is holding stead…

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