A recent report from Standard Chartered estimates that Coinbase's Base layer 2 solution has contributed to a $50 billion reduction in Ethereum's market capitalization. This development highlights the growing trend of successful decentralized applications launching their own blockchains, which may impact the valuation of general-purpose layer 1 blockchains. Analysts suggest that as on-chain applications prioritize customizing their blockspace and monetizing it, the traditional value proposition of layer 1 networks like Ethereum could be challenged. The report indicates that the shift towards layer 2 solutions, such as Base, could lead to further fragmentation in the Ethereum ecosystem, raising questions about the long-term viability and valuation of Ethereum as a leading cryptocurrency.