Ethereum Faces a Defining Moment as Arkham Questions Where Value Will Flow Next
The post Ethereum Faces a Defining Moment as Arkham Questions Where Value Will Flow Next appeared on BitcoinEthereumNews.com.
Ethereum Ethereum has reached a milestone most blockchains never come close to: ten years after launch, it still anchors the decentralized finance world. Key Takeaways: Arkham says Ethereum’s future depends on whether value continues to flow back to the L1 as rollups grow. The Fusaka upgrade is a crucial test for Ethereum’s modular roadmap and long-term economic model. ETH must re-establish the “digital oil” narrative under a rollup-centric system to maintain its leadership position. Yet Arkham’s latest analysis argues that the network is now entering a phase where dominance alone no longer answers the most important question for investors. The real issue is whether Ethereum can continue to accumulate value at the base layer while Layer-2 ecosystems explode in size. For Arkham, Ethereum’s underperformance against Bitcoin during the 2024–2025 cycle is not a coincidence. Institutional adoption has increased, ETF inflows have arrived, and major firms have added ETH to their balance sheets, but the price trend continues to lag. According to the researchers, the hesitation in the market is not about security or demand — it is about uncertainty over how much value ultimately returns to the L1. The L2 Debate Takes Center Stage Rollups have solved the scaling problem that haunted Ethereum during previous cycles. Transaction capacity has surged, fees have dropped, and entire L2 economies have formed on top of the network. Arkham notes that this progress has created a new debate: if activity keeps shifting to rollups, will the value that fuels the ecosystem flow back to ETH, or will rollups retain most of it internally? The report argues that investor confidence in ETH is now tied to the answer to that question rather than traditional metrics like TVL, development activity, or institutional demand. Fusaka Arrives as a High-Stakes Test The next chapter of Ethereum’s story begins…
Filed under: News - @ November 30, 2025 6:20 am