Raoul Pal: The Value of Layer 1 Blockchain Lies in Economic Activity
Raoul Pal, founder and CEO of Global Macro Investor, stated that the value of Layer 1 blockchains lies in the economic activities they underpin rather than cash flow. He cited Ethereum (ETH) as an example, arguing that if Ethereum were to cease operations, stablecoins, decentralized finance (DeFi), Layer 2 solutions, and non-fungible tokens (NFTs) would all be affected. Pal raised objections to the discounted cash flow (DCF) model, emphasizing that it is inappropriate to evaluate Layer 1 as if it were a company based solely on fees or cash flow. He described Layer 1 as the foundational infrastructure for the next wave of economic activity, asserting that networks like Ethereum are connected to the entire economic activity rather than a single company. This statement is relevant to domestic investors as it relates to the ongoing debate about the valuation of Layer 1 and offers perspectives on distinguishing assets like Bitcoin (BTC), Ethereum, and Solana (SOL). However, he added that whether this perspective leads to price forecasts or investment decisions is a separate issue. Pal highlighted the importance of network density as a reason Layer 1 attracts developers, capital, assets, and transaction speeds, using Ethereum as an example that values network effects and ecosystem scale. Ultimately, this statement leads to a debate about whether to evaluate Layer 1 like a stock or view it as the foundational network of the digital economy.
This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.
You may also like

The Day China Banned ICOs with a Statement - The Crazy Crypto Stories

Comparing ETH, SOL, and HYPE to Fast Food Chains: Ark Invest Analyzes L1 Business Models

What is Delta Hedging: A Method to Neutralize the Risks of Spot Holdings

Pablo Goldin: "The Central Bank is trapped monetarily, it perceives the problem but cannot find a way out"

The calendar began to press
![[SCAN 2026 Final Interview] CertiScan: Tracking Virtual Assets with Practical Experience from CertiK](/public-static/14_1ee1df8c36.png?format=avif)
[SCAN 2026 Final Interview] CertiScan: Tracking Virtual Assets with Practical Experience from CertiK

Three Blockchains Halted in Four Days, Only Chronos Rolled Back

The Surge of 'Buybacks' in the Cryptocurrency Market

Electricity Theft for Cryptocurrency Mining Becomes a Serious Problem for Southeast Asia

What is a "cold wallet" for cryptocurrencies? This was the device sought by the killer of Camilo Séptimo's keyboardist

Hargreaves Lansdown Launches Cryptocurrency ETNs for UK Investors

Cloudflare Launches Vulnerability Defense Service with OpenAI

Bitcoin Below $80K, Digital Ruble and Hot Topics of the Crypto Forum

Ripple: Brad Garlinghouse Links Slow Gold Movement to Cryptocurrency Value

Over 90,000 Unique Hooks Initialized in Uniswap v4, Expanding Development Experiments

$778 Billion Traditional Asset Futures Transform Exchanges

South Korea Aims to Tokenize Its Entire Stock Market: The Plan Already Has a Date

Nscale Seeks $3.5 Billion Before IPO and Redefines AI in Europe

Spark, Bitcoin's L2, Collides with the Open Source Culture of Its Own Ecosystem

Bitcoin: How Economists Dead for a Century Became the Bible of Bitcoiners?

Bitcoin Gains a Strategic Place in the Economy of the United Arab Emirates

Pentagon Subjects Senior Officials to Polygraph Tests to Uncover Leaks

DAOs are forcing crypto protocols to choose between code and emergency brakes

Fed stablecoin research exposes how the same dollar could count twice in M1 or M2

Post-quantum Bitcoin Protection: QuFi Tests Bitcoin Security Without Blockchain Changes

OCEAN Reactivates Lightning After Damage from Dashjr's Bet on BIP-110

SHAKA Festival 2026: The Startup Challenge that Puts Founders Face to Face with Investors

AI Data Centers: Cooling Goes Under the Sea

Hegotá Censorship Resistance Confirmed, Slot Shortening Under Review






