Everything on Network Effects

Layer 2 solutions like Robinhood Chain and Base are driving massive transaction volumes that settle on Ethereum. This creates a structural demand for ETH and reinforces the L1's security value proposition.

Impact: The success of L2s validates Ethereum's architecture and increases the stickiness of the ecosystem for institutional users.

— from Ethereum Undervaluation and the Tokenization Supercycle · The Milk Road Show· Aug 27, 2026

Migration friction between privacy chains creates strong network effects. The risk of metadata leakage when moving between anonymity sets discourages users from leaving established networks.

Impact: This friction leads to market consolidation, where a few large privacy chains will dominate, creating significant barriers to entry for new competitors.

— from Privacy as the Ultimate Crypto Moat · web3 with a16z crypto· Jan 30, 2026