The investment case for Ethereum's native token, ETH, has become more complex with recent protocol changes. The implementation of EIP-1559 created a direct relationship between Ethereum usage and ETH's supply, putting upward pressure on its price. However, the rise of Layer-2 scaling solutions has reduced the supply burn, weakening the downward pressure on ETH's supply. Restoring demand for Layer-1 transactions and repricing Layer-2 settlement fees are potential solutions to restore ETH valuation. The future of ETH depends on how Ethereum balances innovation with economic policy.



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