The current state of ETH: The network is thriving, but value capture is low. In Q1 2026, the number of transactions exceeded 200 million, hitting an all-time high. Where’s the growth coming from? L2s and stablecoins. But neither of these translates into ETH’s price. At their core, both are bypassing 'ETH itself.' L2s take away transaction fees, with value circulating within their own ecosystems; stablecoins have high demand but don’t require holding ETH. This is a classic value capture gap and a key reason why the market has been slow to assign a 'premium.'