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Raoul Pal, co-founder and CEO at Real Vision, discusses the comparative advantages and challenges of the application and base layers in blockchain. Pal suggests that while the application layer could generate more income if selections are made wisely, successful picks remain difficult.
He also notes that base layer activity is consolidating around a few key blockchain networks, which are poised to serve as the settlement layer for future developments, such as billions of AI agents.
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Pal previously highlighted the design of crypto as native digital money for the emerging digital economy in a recent note. Earlier, he commented on the U.S. Treasury's plan to double long-end bond buybacks after the 30-year yield reached a 19-year high, as detailed here. These remarks reflect Pal's ongoing focus on both macroeconomic policy shifts and technological trends.