ARK Invest Researcher: Ethereum Built a Successful L2 Ecosystem but Failed to Monetize

ARK Invest researcher Lorenzo Valente compared Ethereum, Solana, and Hyperliquid to McDonald's, Chipotle, and In-N-Out, respectively, arguing they possess distinct value capture structures. Valente described Ethereum as a franchise model that expanded via L2s but failed to charge the settlement layer effectively. Solana functions as a direct-operated model, retaining more value from transaction fees, priority fees, and MEV. Hyperliquid relies on vertical integration and token buybacks, though it faces risks from centralized product and revenue sources.