According to @alice_und_bob, L1 token value accrual is driven primarily by their use as direct or indirect collateral rather than by L2-to-L1 fee flows, because blockspace pricing becomes a race to the bottom as L1s scale and capacity turns abundant (source: @alice_und_bob on X, Dec 8, 2025, https://twitter.com/alice_und_bob/status/1998090662168727989). The post outlines an endgame where L1s mint algorithmic stablecoins and other synthetic assets to anchor basic economic activity, then use those stables to collateralize RWAs, spot and money market liquidity, prediction markets, and oracles, creating systemwide collateral demand for the L1 token (source: @alice_und_bob on X, Dec 8, 2025, https://twitter.com/alice_und_bob/status/1998090662168727989). For trading, this framework prioritizes L1 ecosystems building native stables and RWA collateral rails over narratives focused on L2 fee kickbacks to L1s when assessing sustainable token demand and value capture (source: @alice_und_bob on X, Dec 8, 2025, https://twitter.com/alice_und_bob/status/1998090662168727989).

According to Balaji (@balajis) on Twitter, traders are advised to invest in UST stablecoin only with funds they can afford to lose, highlighting the ongoing risk and volatility associated with algorithmic stablecoins. This warning is highly relevant for crypto market participants, as UST has previously experienced severe depegging events, impacting broader crypto asset prices and sentiment (source: @balajis, May 24, 2025). Crypto traders should monitor UST stability closely and integrate risk management strategies to mitigate potential portfolio losses in case of future instability.