Famous macro trader Raoul Pal: The value of L1 lies in everything it guarantees, not in cash flow

Global Macro Investor founder and CEO Raoul Pal published a discussion on how to value L1. He used Ethereum as an example, stating that if it were to shut down, all stablecoins, DeFi, all L2s, and NFTs on it would go to zero.

Pal indicated that L1 attracts assets, capital, and velocity due to its intellectual density. Ethereum has the most developers, programmability, and a complete ecosystem. He has repeatedly heard the DCF argument and believes it is meaningless; the valuation target is not cash flow, but everything guaranteed by the chain.

He stated that as we enter the era of indices, the entire human economy and the new intelligent economy will be on-chain, and immense value will accumulate in these foundational layers, which is evident.