Ethereum Scaling Solutions | The Smart Money Investments Retail is Missing in 2026

A growing number of investors are turning their attention to the Ethereum ecosystem, focusing on rollup infrastructure providers. Sources reveal that retail investors seem unaware of the essential support structures fueling the growth of Layer 2 (L2) solutions.

Shift in Investment Strategies

During a recent meetup, a portfolio manager challenged attendees to rethink their investment strategies. The core insight? Instead of hunting for winning L2 platforms, focus on the underlying infrastructure each needs. This includes sequencer infrastructure, data availability solutions, bridging mechanisms, and deployment tooling.

"Invest in the pickaxes and shovels, not the prospectors," said the manager, a sentiment echoed by finance experts like Larry Fink, who emphasizes the long-term viability of infrastructure. The argument suggests that the companies providing these essential services will capture value regardless of which chain dominates in total value locked (TVL).

Concentration in Infrastructure Providers

Analysis of the L2 ecosystem reveals a surprising concentration among infrastructure providers. Many popular rollups rely on a small number of backend platforms. This trend spans various verticals, including gaming, DeFi, and social applications. Investors are advised to consider this when developing their portfolios.

Recent comments from the community reflect a mix of optimism and skepticism:

• "Rollup infra is where the money will be made, but good luck picking the right one. Half these L2s will be ghost chains in two years."

• "Been looking into a few RaaS providers. Caldera seems to be powering many new chains."

Market Misalignment

Despite the increasing attention on infrastructure, many retail investors still chase individual L2 tokens based on TVL metrics. Yet experts like a16z and Paradigm warn that this strategy is shortsighted. “In the L2 race, the winners are those selling the infrastructure,” they argue.

Key Takeaways

• △ Value is in infrastructure: Companies providing foundational services are better positioned for growth.

• ▽ Market awareness needed: Retail investors remain focused on surface-level metrics instead of essential infrastructure.

• ※ Expert perspective: "Investing in infrastructure will yield higher long-term returns."

As we enter the next 12 to 18 months, there’s an expectation that the market will shift focus toward the less glamorous but vital infrastructure layer, possibly leading to a market re-evaluation. Investors like the portfolio manager, who reallocated funds out of individual L2 bets and into infrastructure, are feeling more confident about their risk profile.

The prevailing question remains: will the broader market catch up and recognize the essential role of rollup infrastructure, or will retail investors continue to sleep on this essential investment opportunity?

Future Insights on Infrastructure Investments

There's a strong chance that as retail investors begin to recognize the importance of infrastructure within the Ethereum ecosystem, allocations will shift significantly. Experts estimate that within the next 12 to 18 months, the market may see upwards of 40% of capital flow toward infrastructure providers as awareness grows. This change will likely be driven by increased education and the performance of these foundational companies, which stand to benefit from broader adoption of Layer 2 solutions. Investors currently focused on individual tokens may soon find themselves reassessing their strategies, realizing that the path to lasting value lies in supporting the frameworks that enable these technologies.

A Historical Echo from the Gold Rush

In many ways, the current landscape mirrors the gold rush of the mid-1800s. While countless adults chased their fortunes digging for gold, it was the merchants—selling tents, picks, and supplies—who truly struck it rich. Just as those who provided vital resources during that boom made substantial profits while prospectors came and went, the same pattern could emerge in the crypto world. The lesson here is clear: the true potential often lies not in the glamorous spotlight but in the robust systems that enable success. Those pushing for innovation in infrastructure, rather than chasing fleeting tokens, may be the ones celebrating in future years.