MAR 11, 2026Bankless
Where is ETH in the cycle? | Michael Nadeau
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L2 value leakage The Ethereum Layer 2-centric roadmap has successfully scaled the network but has temporarily weakened short-term value capture for the ETH asset by migrating high-margin transaction fees off the base layer.
“The L2 roadmap may have improved the network while weakening short-term value capture for the asset itself.”
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Fair value signals Key on-chain indicators, including MVRV ratios and the 200-week moving average, suggest that Ethereum is currently trading within a 'fair value zone' rather than a cycle top.
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Fundamental disconnect Despite robust growth in DEX volumes and stablecoin supply on the network, ETH price performance has lagged as the market reprices the asset's utility within a fragmented settlement ecosystem.