MegaETH in 2026 & Ethereum's L2 End Game | Brett DiNovi & Lei Yang

Bullish:

• $MEGAETH - MegaEth positioned as performance and UX black hole that will attract apps and users due to superior execution environment and predictable costs at scale

  • “Mega ETH will be a performance and UX black hole. Because right now, we're in the early stage of all this stuff and people are bicker bickering over consensus mechanisms. They're bickering over, like, this little stuff. And you know what happened? We'll observably this last year and a half? Everyone went to Hyperliquid.”

    Brett·26:51

  • “If I can sit there and say, I can take my app from a base, a HyperEVM, an Ethereum mainnet, an avalanche, and I just port it over to a Mega ETH and it's instantly a better experience, like, I'm probably gonna do that.”

    Brett·28:03

  • “We had 50,000 transactions per second. We had people coming on and doing latency intensive apps on top of that. Same time, cost were still fraction of a cent. So that's that's predictability for these builders.”

    Brett·28:43
• $STABLES - Stablecoins represent massive consumer value unlock through real-time money and programmable features that traditional banking cannot match

  • “I think stablecoins are very unique primitives. Like, I think about them constantly. And and and I think the world is not prepared to what real time money does for consumer experiences and businesses.”

    Santi·57:06

  • “If every consumer if you move to a system where the consumer doesn't get interest to one where they do, what banks keep, that's effectively equal to a thousand $300 a year, which is a COVID stimulus check. You wanna stimulate the economy, move everyone to stablecoin.”

    Santi·1:04:16

  • “I think the power of crypto is we can solve around things that have been really hard, is financial illiteracy is never going change. I think people don't really know how to make their money work for them, and a stablecoin is programmable. It has clear rules. It could be regulated and can work for the consumer in a way that traditional checking and savings accounts can't.”

    Santi·8:54
• $LAYERTWO - Layer 2s fundamentally cheaper to operate than L1s with lower cost basis and ability to achieve latency that L1s cannot match

  • “fundamentally, it's cheaper for a layer two to process transactions, and there's no I personally, I think there's no question around that because fundamentally, layer twos use fewer servers.”

    Lei·12:31

  • “I think the bottom line is the cost basis for layer one is just fundamentally higher than than layer two.”

    Lei·13:01

  • “We want to address a market that is fundamentally impossible for any layer one to address. And by doing that, you kind of capture a part of the market that you will never be captured by by by any layer one, however much scaling they are pushing.”

    Lei·11:30

Bearish:

• $ETH - Ethereum's value capture model is broken as L2s capture 98% of value while L1 only gets minimal fees, with execution value flowing to L2s not L1

  • “I fundamentally think that I cannot justify the value proposition or the value capture of Ethereum. I've been very vocal about it. I just think that it is it is a broken, bankrupt model, and I'm not getting paid enough for the value it provides.”

    Santi·36:48

  • “the roll up centric roadmap is broken, in my opinion. Why? Because L2s capture most of the value. Value doesn't flow back to the L1.”

    Santi·2:24

  • “if you're only gonna do execution premium, right, if you do these DCS, even today, you look at a Solana. Solana with all the value that's captured, even though the the block building pipeline gets eaten up by Jitos and, you know, everyone else. Even if you do that, you're like, Solana's pretty, pretty expensive. It's pretty expensive even today.”

    Brett·4:48

  • “there actually is margin calculations that are out there and base, arbitrary, whatever, they're taking 98% of whatever. Think that's roughly the margin they have.”

    Brett·39:21
• $LAYERONE - L1 blockchains fundamentally limited by latency constraints and cannot compete with L2 performance due to global validator communication requirements

  • “With layer ones, you have to communicate between block producers. So one simple example is if I send Santee, say, $10 on on the blockchain on the blockchain, and currently, it's the New York block producer certifying that transaction, and the next transaction will be the next block will be certified by a producer in Tokyo, then just the fact that I sent Santi the transaction has to be communicated to the Tokyo block producer in order for it to continue. Right? So this latency fundamentally limits many applications.”

    Lei·12:42

  • “it takes almost three hundred sec three hundred milliseconds at the least to circle around the world, which is something that layer ones cannot bypass if they want to stay the, like, the globally disturbed the globally decentralized nature.”

    Lei·14:03

  • “If you take Ethereum's current throughput, you 10 x it, and then you 10 x it, and then you 10 x it. Right? From that starting point, you're still about 50% of what, Meggeth can do today. Right? And then you think of the timescale it takes for them to get to that like, bro, we're talking five to ten years.”

    Brett·23:50