Key highlights:
- Joseph Lubin is eyeing an avalanche of companies building on Ethereum L1 and L2s after Robinhood Chain’s success
- Lubin is backing low fees to attract thousands of companies, triggering a price boom for ETH
- Critics have poked holes at the low fees after Robinhood Chain paid 0.15% of revenues to Ethereum’s L1 chain
Ethereum co-founder Joseph Lubin has forecasted a wave of companies rolling out their own blockchains following the success of Robinhood Chain on Ethereum. However, critics have poked holes in Ethereum’s long-term sustainability after receiving only 0.15% of Robinhood Chain’s revenue.
Joseph Lubin backs low fees to attract more “Robinhood Chains”
In a post on X, Lubin via X
However, Lubin defended the ultra-low fees paid to the Ethereum layer 1 chain, arguing that it will “foster growth.” Per Lubin, low L1 revenue fees will provide enough incentive for companies to build their own versions of Robinhood Chain, giving ETH bullish conditions for a price rally.
The Ethereum co-founder added that activity by companies building on Ethereum will increase the network’s monetary premium, while staking reduces the circulating supply. Meanwhile, the low fees from “thousands of companies” will become significant in the coming months.
“Monetary premium will grow very large, “fee revenue” To L1 from so much activity will grow significantly, staking and other locking away of ETH will reduce supply, and net burning of ETH under ultrasound conditions will further grow the value of ETH,” said Lubin.
Meanwhile, Bitmine CEO Tom Lee described Robinhood Chain as proof of Ethereum’s growing utility for digital assets, eyeing an imminent ETH bull run. At press time, ETH and ARB are trading at $1,784 and $0.08978, respectively, an upward bump after the launch of the Robinhood Chain.
Critics push back at Lubin’s forecast
Lorenzo Valente, Director of Research at ARK Invest, probed the viability of Lubin’s predictions. Valente argued that the claim of “thousands of Robinhoods building L2s” is far off, questioning the number of 50-billion-dollar companies in existence.
However, Lubin countered that Ethereum’s best play is to onboard a slice of the 300 million businesses operating globally. He predicted that the business would embrace blockchain and cryptocurrencies in the same manner as the web:
“In the same way most orgs migrated to the web, most will migrate some of their operations on chain. Ethereum tech is best configured to support the migration of the global economy on-chain.”
Ahead of the incoming influx of institutional players, whale-backed Ethereum research nonprofits are preparing the network. Meanwhile, Ethereum is racing towards its third iteration, a massive upgrade that will improve network speed, security, and scalability.
Source:: Ethereum Co-Founder Predicts "Tens of Thousands" of Robinhood Chain Copycats, Eyes ETH Boom