Ethereum Mainnet at Risk of Being Left Behind in Tokenization Boom
The Ethereum mainnet's lack of involvement in the tokenization boom is causing concern among experts. According to Lorenzo Valente, head of crypto research at Ark Invest, the Ethereum chain has nearly zero traction in tokenized stocks on spot DEXes, despite the segment's surge to 12% of total volumes.
The issue lies in the fact that companies are opting to tokenize on Layer 2 (L2) networks, such as Arbitrum and Base, rather than the mainnet. This has led to a debate about the role of L1 networks in the tokenization process.
Ethereum Institutional's Marius Smith disagrees with the notion that Ethereum is lagging behind, citing the importance of supply over volume. He argues that the mainnet leads in supply, and that regulated issuers and venues are the key to success in the tokenization market.
However, Luigi DeMeo, Chief Strategy Officer at Aave, believes that Ethereum needs to take an active role in winning issuers and regulated venues, rather than focusing on chasing subsidized AMM turnover.