Does Ethereum have a future? Read Kain's tweet and feel it! Synthetix founder Kain @ kaiynne tweeted discussing the challenges facing Ethereum: After reading the whole article, I feel that it revolves around a key issue: Can Ethereum, as a value capture mechanism for L1, still support the long-term value of ETH? Kain's main viewpoint is actually a common topic that everyone talks about: 1) Ethereum (L1) is being marginalized because: L2 has lower costs and higher efficiency; The rapid development of L2 has led to a decrease in the value capture of the main network, intensified competition, and poor price performance, which in turn has "sucked away" traffic and costs. ETH's "profit" (burning) decreases, and the price loses support. 2) There is a significant gap in community narrative: From the dream of a market value of 10 trillion US dollars, to now ETH/BTC constantly breaking new lows. The 'shareholders' of ETH are naturally unhappy. Kain believes that the core issue lies in the insufficient demand for L1 block space and the compression of profit margins. "tokenizing everything" is the only hope, which can create new demand for block space. The community needs to refocus its attention on solving the problems of value capture and insufficient block space, rather than continuing to pursue long-term ideals. I feel that I partially agree with this viewpoint—— one ️⃣ The impact of L2 on Ethereum—— This is a clich é d question, and what I agree with is that the value capture of L2 eating L1 is a very practical issue, Many people in the industry are actually avoiding the idea that the prosperity of L2 does not necessarily mean an increase in the value of ETH. Especially after the Dencun upgrade, the cost of L2 has dropped sharply, and ETH burning has also decreased. Liquidity, trading heat, and wealth effects are migrating to L2 and other chains (such as Solana), If this trend continues, Ethereum's position as a "pillar of value" will indeed be further weakened. ETH, as one of the strongest assets driven by Crypto narrative, Three years ago, almost 100% of people believed that ETH could reach 5-10 trillion. Now, this performance and result have indeed made many people feel "cut" or confused, thus forming a short-term vicious cycle; two ️⃣ Is tokenization the antidote? Tokenize everything. Kain @ kaiynne mentioned tokenizing everything, through RWA, on chain financial assets, compliance assets, etc., to re increase the demand for Ethereum blockchain space and bring ETH back to the core of value. Can it truly restore Ethereum's profit margin? I feel like there's a paradox here, which is essentially a chicken egg, egg egg chicken problem: Most tokenized assets require regulatory and compliance support. The truly landed assets (such as RWA, bonds, stocks) may be preferred over specially customized chains or private chains, rather than necessarily Ethereum. Even if deployed on Ethereum, they may prefer L2 over the more expensive L1. So, placing all hope on the card of "tokenization" always feels unreliable to me. three ️⃣ Personal judgment: My personal judgment is: 1) In the short term, Ethereum is indeed on a downward trend, especially in terms of narrative, price, and popularity, and is currently in a trough period. 2) But in the medium to long term, it still has strong ecological inertia, system level advantages, and narrative possibilities. As long as it can solve the value return mechanism, it still has the opportunity to return as the king. L2 is not an enemy, it is an extension, but if the mainnet loses its economic anchoring ability, ETH will become an powerless "underlying asset". What Ethereum should do is to coordinate the mechanism to adjust the L1/L2 profit distribution, turn new narratives (such as Restaking, RWA) into real applications, and avoid internal friction caused by "internal competition imbalance" in order to highlight and revisit them! The Ethereum community has solved many coordination challenges in the past. Now is the time to prove oneself again. There is a sentence in Kain's tweet that left a deep impression on me: I may be a fool, but I know Ethereum is facing real problems Indeed, now is not the time for self motivation, but rather the need to rethink Ethereum's value model. Tokenization is just a direction, not a panacea. No one can guarantee which chain the future belongs to, but what is certain is: If ETH wants to return to its peak, it must solve the contradiction of "L2 prosperity and mainnet loss" and find a new narrative to make people believe that it can reach 10 trillion again.