ARK Invest: "Even if Ethereum L2 grows, ETH won't earn"

▲ Ethereum (ETH)/AI Generated Image

Despite the rapid growth of Ethereum (ETH) Layer 2, it has been pointed out that the revenue Ethereum earns is negligible.

According to Coingape on September 2 (local time), the trading volume of the decentralized exchange on the Arbitrum-based Robinhood Chain tripled from $480 million on August 20 to $1.44 billion. The total value locked (TVL) in decentralized finance (DeFi) also reached an all-time high of $758 million. Robinhood Chain's application revenue surpassed that of Ethereum and Hyperliquid.

Lorenzo Valente, an analyst at ARK Invest, pointed out that even with the rapid growth of Layer 2, the economic value returned to Ethereum is not significant. On August 30, Robinhood Chain earned $978,000, but only $155 was paid to Ethereum. Arbitrum took $108,000 on the same day. Valente said, “Ethereum's share is effectively a fixed Layer 1 data posting cost, rather than a revenue share,” adding, “The market is slowly realizing that Layer 2 is an extremely bad business for Ethereum.”

Opposite signals appeared in supply and demand. According to CryptoonChain, an analyst at CryptoQuant, an average of 25,178 ETH flowed out of Binance daily in August. The increase in exchange outflows coincided with a decrease in selling pressure in the same month. Ethereum spot ETFs also recorded net inflows for 12 consecutive trading days. On September 1, $10 million flowed in despite interest rate hike concerns, and the total net inflow for August was $1.85 billion, the highest since August 2025.

Warning signs appeared in technical trends. A rounded top pattern formed on the 4-hour chart, with a pattern height of 5.22%. It was suggested that if the $2,380 support level breaks, it could fall to $2,200. The Relative Strength Index (RSI) was 33, indicating a bearish trend. The Awesome Oscillator (AO) also showed lengthening red bars, indicating increased selling pressure.

Cryptocurrency analyst Michael van de Poppe also suggested a short-term correction to $2,200. He assessed this price range as an entry point for long positions and predicted that if buying pressure comes in, it could recover to $3,000. Amid growing controversy over the economic effects of Layer 2 growth, exchange outflows and inflows into Ethereum spot ETFs are sending supportive signals in terms of supply and demand.

[Key Summary of Article]

-Robinhood Chain earned $978,000 on August 30, but only $155 was paid to Ethereum.

-Lorenzo Valente of ARK Invest described the Layer 2 revenue structure as “extremely bad business” for Ethereum.

-Technically, if $2,380 breaks, a correction to $2,200 was suggested, and $3,000 was mentioned as a target range for a rebound.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*