# Ethereum to $20k? By [Deep the fuckin Dip](https://paragraph.com/@khangky) ยท 2022-03-16 --- This thread is from [RyanBerckmans](https://twitter.com/RyanBerckmans/status/1502695994131197953) which contains a lot of alphas. If you find it interesting please give him a follow. L2s and ETH economics --------------------- I wanted to provide an update on how L2 hypergrowth is driving value to ETH, and why we're on track for ETH at $20k+ within a few years Last week, eth's total fees were 60% less than the 2021 avg, a bear sign and showing the current volatility of ETH as a source of cash flow. Yet rn, L2 security costs are only 1% of total fees, meaning that settling on eth will remain inexpensive as L2s continue to hypergrow. We now have evidence that * L2s/volitions will be truly inexpensive for billions of end-users * all L2s, including a long tail of forthcoming new L2s, will be able to afford to settle on eth. Eg. rn, all L2s combined cost $100k/day to settle on eth [https://l2fees.info/l1-fees](https://l2fees.info/l1-fees) * eth's Web of Assets trustlessly bridged from L1 to L2 and between L2s will continue to drive network effects to ETH. At the same time, individual L2s may be expected to develop their own L2-level network effects and support L2 native token valuations * L2 security costs will end up driving significant cash flow to ETH, and this cash flow may be more reliable and less reflexive in the bull/bear market than today's fees spent on ponzis, NFT launches, etc. at least because L2s regularly settle regardless of market conditions In short, within a few years, L2 hypergrowth may be expected to help ETH grow to global ubiquity, drive reliable cash flow to ETH, and, imo, take us to ETH at $20k+ This thread is from [RyanBerckmans](https://twitter.com/RyanBerckmans/status/1502695994131197953) which contains a lot of alphas. If you find it interesting please give him a follow. --- *Originally published on [Deep the fuckin Dip](https://paragraph.com/@khangky/ethereum-to-20k)*