Author: Lao Bai, Investment Research Partner at ABCDE Capital

Yesterday's Twi about the ETH dilemma sparked many private message discussions and comments from friends, which happened to summarize some things as a whole and send a follow-up.

1. Regarding the breaking point of ETH, is BasedRollup the answer?

My opinion is that it's hard to say in the long run, but it won't be in the short to medium term. If Based Rollup had been the mainstream technical framework for Rollup from the beginning, it would have been promising, but now it is difficult.

Firstly, if several mainstream L2 companies have not been incentivized to transform into Based Rollup, why should the rights and benefits already obtained be distributed? Secondly, after discussing with other technology KOLs, I find it difficult to implement the interoperability that Base Rollup has been advocating. It's impossible for all Base Rollups to be packaged using the same batch of L1 validators, right? Thirdly, in order to prevent a decline in user experience, Base Rollup must add pre confirmation, which is similar to Validium in the past but also poses a security risk. Some overseas ETH technology KOLs strongly oppose this technology.

2. What applications can Solana do that ETH cannot do?

The answer is not from a technical perspective, but this world has never been solely based on technology.

Why do PumpFun, AI Meme, Depin, and Payfi happen in Solana instead of ETH or any L2? This is actually the first time in ETH's history that it has faced a competitor who excels in operations (what? You mean EOS and Dot? Their operations are really... indescribable). How much innovation does Tencent have from scratch? QQ is an imitation of ICQ, and Pesticide (note: referring to "King of Glory") is an imitation of LOL, but neither one is so popular that it's hard to make a profit. Today's time Fun has also migrated from Base to Solana, which is clearly not due to technical reasons, but rather cultural and operational considerations.

Why doesn't AI have Near, Depin doesn't have IOTEX, and Game doesn't have BNBChain and AVAX in the track distribution map?

This track distribution map mainly shows the distribution of over a hundred primary market projects in the application category that I have talked about in the past six months. Many of them are still out of the public eye and have not even released external financing information, so they are not the existing coin issuing projects that everyone sees in the secondary market. Furthermore, it is impossible for our fund to discuss all the new projects on the market, so the sample is limited. It is just a market distribution situation that I have seen from my personal perspective, and I will share it with everyone.

4. Monad and MegaETH mainnet are not yet available, how could there be so many projects being developed on mainnet? Old Bai, are you just trying to smuggle smuggled goods?

Star public chains are different from ordinary public chains. Not only the main network, but even the testing network has dozens of new projects built and developed based on it before it is launched. Various activities such as Hacker House and Incubation have also taken off. Monad, MegaETH, and Berachain are typical representatives of this type.

As for smuggling private goods, ABCDE was indeed one of the early investors of MegaETH, but we did not invest in Monad and Berachain. However, I still do not hesitate to praise Monad on the list, even though he is our biggest competitor to Portfolio MegaETH. Because their ecology is indeed well constructed and their technology is strong enough. The future market is spacious enough for two ultra high speed EVM public chains to prosper and progress together. They are both opponents and friends.

Monad – Make EVM Great Again!

MegaETH – Make Ethereum Great Again!

Original link: Lao Bai's X, this article is an extension of "ABCDE Investment Research Partner: Discussing Ethereum's Current 'Dilemma' from a Primary Market Perspective".