I see this question a lot - my answer: The below tweet is assuming that ETH gets most of its value from its use as a fee token when imo this is not true. I rank the value accrual properties like this: 1. Store of Value/money 2. Staking asset 3. Collateral asset 4. Use as fee token 5. Everything else BTC is more than double ETH's market cap right now but normally has 1/10th of the fee revenue (just an example to support my point). On top of this, ETH is the defacto "money" for everything built within its orbit - L2's or otherwise - for a wide variety of reasons (its valuable, has deep liquidity, network effect, lots of holders, accepted everywhere etc) Additionally, the thesis is that the aggregate demand for L2 blockspace will match and ideally exceed the demand for L1 blockspace in terms of fees paid. So instead of it being just one layer 1 transaction paying $10 in fees for a swap, it's 1000's of layer 2 transactions paying 1 cent or less for a swap (which then get settled down to L1). The most important part here is that layer 1 Ethereum only accepts ETH as the fee token for the base_fee (the portion of the fee that is burned) which means layer 2's can let users pay in whatever token they want - but ultimately it gets settled in ETH on layer 1. And don't assume that L1 still won't see activity - it certainly will because it is a settlement layer for L2's and other entities. I don't own enough ETH 😅