Global Macro Investor founder and CEO Raoul Pal discussed how to value layer 1 blockchains, using Ethereum as an example. According to ChainCatcher, he said that if Ethereum were shut down, stablecoins, DeFi, all layer 2 networks, and NFTs built on it would go to zero.

Pal said layer 1 networks attract assets, capital, and liquidity because of their intellectual density. He added that Ethereum has the largest developer base, strong programmability, and a complete ecosystem. He also rejected discounted cash flow arguments, saying they are meaningless because the valuation target is not cash flow but everything the chain secures.

Pal said that as the world enters the index era, with the human economy and a new agent economy moving on-chain, significant value will accumulate on these base layers.