Did L2s break Ethereum's ultrasound money?

The article argues that Ethereum’s “ultrasound money” thesis weakened after network scaling shifted activity from L1 to cheaper layer-2 rollups. EIP-1559 burn and the 2022 Merge briefly made ETH deflationary, but Dencun’s EIP-4844 reduced rollup costs and collapsed daily burn from thousands of ETH to roughly 50–70 ETH, turning ETH mildly inflationary again. The piece says this exposed a core tension: Ethereum’s success as scalable infrastructure reduces fee burn and weakens the scarcity narrative that once supported ETH’s investment case. It also notes a potential repair via the December 2025 Fusaka upgrade and EIP-7918, which creates a minimum blob fee to restore some burn and value capture, though not to prior deflationary levels. Overall, the market implication is that ETH’s valuation may need to rely more on utility, staking, and fee capture than on deflationary tokenomics alone.