Ethereum has reached a milestone most blockchains never come close to: ten years after launch, it still anchors the decentralized finance world.
Key Takeaways:
Arkham says Ethereum’s future depends on whether value continues to flow back to the L1 as rollups grow.
The Fusaka upgrade is a crucial test for Ethereum’s modular roadmap and long-term economic model.
ETH must re-establish the “digital oil” narrative under a rollup-centric system to maintain its leadership position.
Yet Arkham’s latest analysis argues that the network is now entering a phase where dominance alone no longer answers the most important question for investors. The real issue is whether Ethereum can continue to accumulate value at the base layer while Layer-2 ecosystems explode in size.
For Arkham, Ethereum’s underperformance against Bitcoin during the 2024–2025 cycle is not a coincidence. Institutional adoption has increased, ETF inflows have arrived, and major firms have added ETH to their balance sheets, but the price trend continues to lag. According to the researchers, the hesitation in the market is not about security or demand — it is about uncertainty over how much value ultimately returns to the L1.
The L2 Debate Takes Center Stage
Rollups have solved the scaling problem that haunted Ethereum during previous cycles. Transaction capacity has surged, fees have dropped, and entire L2 economies have formed on top of the network. Arkham notes that this progress has created a new debate: if activity keeps shifting to rollups, will the value that fuels the ecosystem flow back to ETH, or will rollups retain most of it internally?
The report argues that investor confidence in ETH is now tied to the answer to that question rather than traditional metrics like TVL, development activity, or institutional demand.
Fusaka Arrives as a High-Stakes Test
The next chapter of Ethereum’s story begins on December 3rd, when the Fusaka upgrade goes live. The update is designed to make Ethereum more modular and more rollup-centric, expanding the network’s ability to process data and lowering costs for L2 chains.
Fusaka increases blob capacity, raises gas thresholds, and introduces PeerDAS and decentralized data sampling to boost throughput. Rather than being a cosmetic improvement, Arkham views it as a stress test for Ethereum’s long-term economic model. If rollups grow stronger without weakening value circulation on the main chain, Ethereum could reinforce its position for years to come. If not, the shift toward L2s might generate an ecosystem where the infrastructure depends on Ethereum, but the economic rewards no longer concentrate at the base layer.
The Narrative Ethereum Must Re-Establish
Arkham concludes that Ethereum’s next phase will be shaped by forces beyond short-term market sentiment. The “digital oil” narrative — the idea that ETH is indispensable to economic activity across decentralized finance — must be proven all over again under a more modular architecture. The strength of the tokenized-asset economy, the direction of gas and data-availability costs, and the speed of traditional finance integration all contribute to the balance of power between L1 and L2.
If the post-Fusaka era demonstrates that higher scalability benefits both the base chain and the rollups built on top of it, Ethereum could not only defend but expand its role in the global digital-asset economy. If it does not, Arkham warns that Ethereum may remain critically important — but no longer the main beneficiary of its own success.
