Reviewed by Reviewed by Saman Waris Updated 21:00 EDT October 4, 2026 Share Share Share Back to Top The ongoing tokenization boom is expected to benefit leading L1 networks, including Ethereum. But some are now warning that the Ethereum mainnet (L1) may miss the party to its Layer 2s (L2s)
According to analyst Gabriel Shapiro, the Ethereum chain will benefit either way. He noted that companies either tokenize on the mainnet or build their own Ethereum L2. He cited Robinhood’s Robinhood Chain as an example
The debate was triggered by Ethereum L1’s zero market share in tokenized stocks in spot DEXes. Overall, tokenized securities DEX volumes have surged to 12%
But the Ethereum mainnet has nearly zero traction, according to Lorenzo Valente, Ark Invest’s head of crypto research
Robinhood, Arbitrum and Base are doing the gruntwork obviously. But where does that leave the L1?
Tokenization is going to reshape the onchain economy, and tokenized equities are going to be the fastest-growing segment over the next 2 years. Ethereum needs a clear vision for what belongs on L1, what moves to L2s, and how the two fit together
His stance and call for a clear vision for Ethereum L1 renewed the L2 value capture and sharing debate that has been going on for years
Surprisingly, some agreed with his call, led by Luigi DeMeo, Chief Strategy Officer at Aave
Ethereum has first-mover advantage for cryptoassets, but new assets, such as stocks, can easily grow larger on newer ecosystems. Ethereum risks being left behind on these if there is not an active role taken
For his part, Marius Smith, co-founder of Ethereum Institutional, disagreed with the argument that Ethereum was lagging
Supply, not volume, is the scoreboard. Ethereum leads it
Marius added that BNB Chain’s outsize share in DEX volume is subsidized. However, he contended with Aave’s Luigi call
Luigi is right that Ethereum needs to take an active role. That role is winning issuers and regulated venues, not chasing subsidized AMM turnover. That’s the work
Marius leads Ethereum Institutional, a new steward that aims to accelerate adoption of the chain by businesses
That said, the tokenized securities market is currently at $3.2B and expected to hit $2T by 2028. And the U.S. is aggressively positioning for the boom
But tech giants such as Google, traditional brokers, and banks also plan to debut their blockchains to issue these products. It remains to be seen how much market share the Ethereum ecosystem will hold in the upcoming years
Benjamin Njiri is a Crypto Analyst and Reporter at AMBCrypto, specializing in technical analysis and emerging market trends. With a background in Telecoms engineering and power systems, he applies data analysis to filter market noise and decode on-chain data. His work delivers clear, data-driven insights that help readers navigate crypto markets with confidence
