(WIP) How to Value L1s, L2s, and Crypto Assets | Kyle Samani

Multicoin adopts MEV as the prime method for valuing L1 and L2 assets, where L1 holders like those of Solana or Ethereum are entitled to MEV rewards.
L1 assets often come with a trading premium, adding value but reducing yield for holders, while L2s may not currently distribute MEV to token holders.
The industry is pivoting towards valuating assets on fundamentals rather than narratives, with escalating efforts to quantify these fundamentals.
Blockchains aim for maximal permissionlessness, where compute and hardware costs significantly influence fee structures, yet the electricity costs for transactions are minimal.

Using L1 should approach the cost of goods sold (COGS), with margins expected to near zero, while MEV remains the critical revenue source, not tied to transaction execution costs.
Ethereum's pricing of COGS is considered overvalued by a trillion factor, underlining a need for reduction.
MEV's significant value extends into single-digit billions across ecosystems, with some validators adopting a 0% commission as their strategy.
Salana introduces Stake Weighted Quality of Service to market bandwidth to validators, being skeptical of Ethereum's role as money due to no pricing in ETH.
Expressing bullishness for Salana and interest in Monad and SWE, emphasizing the rising demand for integrated solutions over modular ones, amid standardization challenges affecting user experience.
Investment in Wormhole, without detailed thesis, is highlighted.

Wormhole's substantial funding round underlines its robustness in connecting diverse ecosystems, acknowledging a multi-chain world integrating EVM and Svm.
Lack of standards among EVM flavors and between EVM and Svm prompts alternative solutions like Wormhole, Axar, and L zero for ecosystem interoperation.
SE's commitment to enduring EVM presence is marked by its V2 upgrade, aimed at enhancing performance and scalability.
Monad focuses on high performance and scalability for EVM, essential for current applications.