Raoul Pal: L1 Value Lies in What It Secures, Not Cash Flow

Chaincatcher

Release Time: 2026/09/06 05:02:37

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Summary

Ethereum ecosystem news: Raoul Pal, founder of Global Macro Investor, explained how to value Layer 1 blockchains, using Ethereum as a prime example. He noted that if Ethereum were to go offline, stablecoins, DeFi, Layer 2s, and NFTs would lose value. Pal argued that Layer 1 value is tied to what it secures, not cash flow, and that Ethereum’s developer base and ecosystem give it a dominant advantage. He expects significant value to accumulate in foundational layers as economic activity shifts on-chain.

ChainCatcher report: Raoul Pal, founder and CEO of Global Macro Investor, published a post discussing how to value L1 blockchains. Using Ethereum as an example, he stated that if Ethereum were shut down, all stablecoins, DeFi, all L2s, and NFTs built on it would become worthless. Pal explained that L1s attract assets, capital, and velocity due to their intellectual density. Ethereum has the largest developer community, the greatest programmability, and the most complete ecosystem. He has frequently heard DCF arguments, which he considers meaningless—since the valuation is not based on cash flows, but on everything the chain secures. He said that as we enter an era of exponential growth, with the entire human economy and a new intelligent agent economy moving on-chain, immense value will accumulate at these foundational layers—and this is unmistakable.

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