ARK Invest researcher Lorenzo Valente made noteworthy assessments regarding Ethereum, Solana, and Hyperliquid.
Lorenzo Valente, posting from account X, compared the value capture models of Ethereum, Solana, and Hyperliquid through three different fast-food chains.
At this point, Valente argued that ETH, SOL, and HYPE should not be considered as different versions of the same Layer 1 (L1) business model, but rather as having entirely different value capture structures, comparing them to McDonald’s, Chipotle, and In-N-Out, respectively.
Ethereum: The Most Successful Franchise System!
Valente argued that Ethereum has established the most successful franchise system in the crypto market through its Layer 2 networks, but collects very little rent or fees at the payment layer.
Instead of directly operating its own Layer 2 (L2) networks, Ethereum allows independent teams like Arbitrum, Base, and OP Mainnet to develop their own networks. However, Ethereum charges limited fees compared to this massive franchise ecosystem it has created.
Solana: She Keeps the Entire Operation Under Her Own Roof!
An ARK Invest researcher noted that, unlike Ethereum, Solana has built its own vertically integrated system and holds higher fees and MEV (maximum extractable value).
This gives Solana a stronger direct value capture mechanism compared to Ethereum. However, in return, the network has to operate the entire infrastructure itself and bear the technical and operational risks that may arise.
According to Valente, Solana’s advantage is its ability to keep a significant portion of economic activity and income under its own umbrella; its disadvantage is that this structure creates a higher degree of vertical integration and systemic risk.
Hyperliquid: The Shortest Value Capture Chain
In Valente’s comparison, Hyperliquid is equivalent to In-N-Out. According to the renowned expert, Hyperliquid has the shortest value-capture chain thanks to its tight vertical integration, lack of VC funding, and fee-financed HYPE buybacks.
Hyperliquid’s model has no external capital, and almost all of the fees flow into a relief fund used to buy back HYPE.
According to Valente, this structure significantly shortens the gap between the fee paid by the user and the economic value obtained by token holders. Therefore, he believes that Hyperliquid has the most direct value capture mechanism among the three models.
*This is not investment advice.
