ARK Researcher Compares Ethereum, Solana, and Hyperliquid to Fast Food Chains

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ARK Invest researcher Lorenzo Valente compared Ethereum, Solana, and Hyperliquid to McDonald’s, Chipotle, and In-N-Out, highlighting their distinct Layer 1 business models. Ethereum operates like a franchise, expanding through Layer 2s while undercharging the settlement layer. Solana captures more value through transaction fees and MEV, akin to a direct-to-consumer model. Hyperliquid’s vertically integrated structure includes fee buybacks but carries a higher risk-to-reward ratio due to concentration. Each chain’s support and resistance in value capture reflects its underlying strategy.

ChainCatcher report: ARK Invest researcher Lorenzo Valente compares Ethereum, Solana, and Hyperliquid to McDonald’s, Chipotle, and In-N-Out, respectively, arguing that they are not merely different versions of the same L1 business model, but instead have entirely distinct value capture structures. Valente believes Ethereum resembles a franchise model, expanding through L2s but charging too little for its settlement layer—even calling it the most successful franchise system in crypto while forgetting to send the bill. Solana operates like a company-owned model, retaining more value within its own ecosystem through transaction fees, priority fees, and MEV. Hyperliquid, by contrast, relies on highly vertical integration, no VC backing, and HYPE fee buybacks, featuring the shortest value capture chain—but faces risks from concentrated product offerings, team structure, and revenue sources.

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