Feb 19
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Ethereum settled trillions in 2025 — but users are leaving Layer-1. Is this a problem? 📌 Watch more Ethereum & Layer-2 deep dives: https://www.youtube.com/playlist?list=PLX9LvjtFdaE4lf3gYR4hBLOSAQN4lvLG_ Ethereum processed trillions of dollars in stablecoin transfers during 2025, cementing its role as the core settlement layer for digital finance. At the same time, a major shift occurred: • Layer-2 networks like Arbitrum, Optimism and Base began processing more daily transactions than Ethereum mainnet • Active addresses on Layer-1 declined • Fees migrated away from users and toward rollups This raises a critical question heading into 2026: 👉 Is Ethereum losing relevance — or evolving into something far more powerful? Since The Merge in September 2022, Ethereum’s economics have fundamentally changed: • Issuance dropped ~90% • Supply became usage-dependent • ETH turned into a yield-bearing, near-zero-issuance asset In this video, we break down: • Post-Merge ETH economics • How rollups reshape fee capture • Whether Layer-2s weaken or strengthen Ethereum • Competitive pressure from Solana, Tron & others • Why institutions continue choosing Ethereum ✅ How Ethereum’s supply dynamics changed after the Merge ✅ Why ETH can be inflationary or deflationary ✅ How Layer-2s offload users but still pay Ethereum ✅ Why Ethereum is becoming a “wholesale” settlement layer ✅ Real DeFi dominance numbers (Layer-1 + Layer-2) ✅ How Solana competes — and where it doesn’t ✅ Why institutions still build on Ethereum ✅ The fragmentation risk nobody talks about ✅ Two possible futures for ETH in 2026 00:00 – Ethereum’s Trillion-Dollar Settlement Role 00:45 – Why Layer-1 Usage Is Declining 01:30 – The Merge: Ethereum’s Economic Reset 02:10 – Staking, Issuance & Validator Economics 02:55 – Why ETH Supply Is Now Demand-Driven 03:40 – Layer-2 Scaling Strategy Explained 04:20 – Arbitrum, Optimism & Base Growth 05:00 – Fee Migration: Who Gets Paid Now? 05:40 – Ethereum as a Wholesale Settlement Layer 06:20 – DeFi Dominance: ETH vs Competitors 07:05 – Solana, Tron & Speed-Focused Chains 07:45 – Reliability vs Throughput Tradeoffs 08:20 – Stablecoins & Institutional Usage 09:00 – BlackRock, JPM & Tokenized Assets 09:40 – Two Futures: Dominant Backbone or Fragmentation 10:20 – Final Verdict: Ethereum’s Role in 2026 Many investors assume declining Layer-1 activity means Ethereum is “losing.” In reality, Ethereum may be doing what the internet itself did: • End users move to cheaper layers • The base layer becomes invisible • Value accrues at the settlement and security layer Understanding this shift is essential for: • ETH holders • Layer-2 investors • DeFi builders • Long-term portfolio positioning Do you think Layer-2s strengthen Ethereum — or slowly weaken it over time? Drop your take below 👇 #Ethereum #ETH2026 #Layer2 #CryptoIQ #Rollups #EthereumMerge #ETHStaking #DeFi #Stablecoins #CryptoInfrastructure ethereum 2026, eth future analysis, ethereum layer 2, arbitrum optimism base, ethereum merge economics, eth staking yields, rollup settlement fees, ethereum vs solana, eth deflationary, institutional ethereum adoption, crypto iq ethereum