Santiago Roel Santos, CEO of Inversion Capital, has sparked a debate by claiming that Layer 1 (L1) blockchains lack positive network effects, suggesting that current valuations are inflated relative to their actual utility. Santos points to high costs and poor user experiences as negative factors impacting these networks. In contrast, analysts like Jasper De Maere and Tomas Fanta argue that L1 blockchains do exhibit network effects, particularly in areas such as validation, security, and liquidity. They believe that scalability improvements could enhance these networks' performance. Meanwhile, Martin Kupka emphasizes the role of stablecoins and exchanges in driving network value. The discussion highlights differing views on how to assess L1 blockchain valuations and the potential misleading nature of current metrics.