Layer-1 Blockchains Diverge in Business Structures

An analysis by Ark Invest has highlighted significant differences in the business structures of three prominent layer-1 blockchains: Ethereum, Solana, and Hyperliquid. According to Lorenzo Valente, crypto research director at Ark Invest, these networks operate under fundamentally distinct revenue models, much like different fast-food chains.

Ethereum is likened to a franchise model, with the network providing the brand, EVM (Ethereum Virtual Machine), developer community, and blockspace, while L2 operators build and run infrastructure on top. After EIP-4844, blob fees paid by L2s fell significantly, leaving Ethereum with minimal revenue.

Solana, on the other hand, is characterized as a fully company-owned model, where all transactions are processed on the L1 network. This means that economic value created through base fees, priority fees, and MEV (Maximum Extractable Value) tips remains within the network.

Hypervelocity (HYPE), however, operates under an In-N-Out-style concentrated model, relying heavily on a small elite team focused on its core product of on-chain order book-based perpetual futures. The majority of trading fees flow into an assistance fund to continuously buy HYPE tokens in the market.