ETH'S LONG-TERM VALUE PROPOSITION

Summary from the TLDR Crypto newsletter

Base's decision to subsidize gas costs in USDC highlights a debate about ETH's long term value proposition and challenges the notion that L2 adoption inherently benefits ETH. While L2s successfully extend Ethereum's utility as a settlement layer, Base's USDC subsidies exemplify how L2s might actually abstract away ETH's “internet-native money” and store of value propositions. Ethereum's success in exporting execution to L2s, while technically beneficial, could undermine its monetary premium if users primarily interact with stablecoins, making its deflationary mechanics and fee capture more important.