Raoul Pal: L1 Value Derives from Secured Ecosystem, Not Cash Flow

Raoul Pal, founder and CEO of Global Macro Investor, argued that Layer 1 blockchains should be valued based on the assets and infrastructure they secure rather than traditional cash flow metrics. Using Ethereum as an example, Pal noted that the network's value is tied to the stablecoins, DeFi protocols, Layer 2 solutions, and NFTs built upon it. He emphasized that L1s attract capital and developers through high intellectual density and programmability. As the global economy and autonomous agents increasingly move on-chain, Pal believes significant value wil