Logan Jastremski: Execution quality is vital for blockchain revenue, Ethereum is overvalued, and understanding blockchains as databases is key | Empire

Solana's higher take rate compared to traditional markets reveals new opportunities in blockchain profitability.

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Add us on Google by Editorial Team Apr. 20, 2026

Key takeaways

• Execution quality is crucial for blockchain businesses to generate sustainable revenue.
• Blockchains can be valued like exchanges based on transaction volume and take rate.
• Ethereum is perceived as overvalued, with concerns about its long-term monetary premium.
• Most crypto tokens, including Layer 1s, are considered overvalued.
• Priority fees in blockchains are driven by trading volumes and provide real yield to stakeholders.
• Blockchains are essentially databases that connect isolated entities.
• Crypto networks have lower overhead costs than traditional exchanges, enhancing profitability.
• Blockchain technology acts as a global ledger, improving data synchronization across financial institutions.
• Solana’s take rate is significantly higher than traditional market rates.
• Execution quality, not just throughput, is vital for a sustainable blockchain business model.
• The economic mechanics of blockchain fee distribution are key to understanding stakeholder incentives.
• Understanding blockchain as a database is essential for grasping its role in technology.
• Low overhead costs make crypto networks financially viable compared to traditional exchanges.
• The global ledger function of blockchain enhances trading efficiency.
• Solana’s take rate comparison with traditional markets highlights potential opportunities or concerns.

Guest intro

Logan Jastremski is an Investor, Writer, and Podcast Host. He previously led highly technical teams at Tesla, focusing on international expansion and growth. He shares insights on crypto theses, including Solana vs Hyperliquid and L1 valuations, through his newsletter and The Delphi Podcast.

The importance of execution quality in blockchain

• Execution quality is essential for generating revenue in blockchain businesses.

• Throughput without execution you don’t have any revenue and so you really need to focus on the execution quality to actually have a good sustainable business model long term

  — Logan Jastremski

• Understanding the relationship between blockchain throughput and execution quality is crucial.
• Execution quality impacts investment and development strategies in blockchain.
• Throughput alone is not enough; execution quality is vital for sustainability.

• Throughput without execution you don’t have any revenue

  — Logan Jastremski

• Execution quality influences long-term viability and revenue generation.
• The focus on execution quality is a critical aspect of blockchain economics.

Valuing blockchains like exchanges

• The value of a blockchain can be assessed based on transaction volume and take rate.

• You can almost value the underlying blockchain like an exchange

  — Logan Jastremski

• Blockchain transaction models relate to traditional financial exchanges.
• This framework links blockchain value to established financial metrics.
• Understanding this valuation method is crucial for investors and analysts.
• The take rate can be measured in basis points or priority fees.
• This approach provides a clear framework for evaluating blockchain value.
• Evaluating blockchains like exchanges offers insights into their economic models.

Ethereum’s valuation concerns

• Ethereum is currently overvalued, with doubts about its monetary premium’s sustainability.

• I’ve been on this podcast saying I think Ethereum is the most overvalued asset

  — Logan Jastremski

• This insight reflects a strong viewpoint on Ethereum’s valuation.
• Concerns about Ethereum’s valuation are critical for investors.
• Understanding Ethereum’s market dynamics is essential for valuation analysis.
• The sustainability of Ethereum’s monetary premium is questioned.
• This perspective is important for market analysts and investors.
• Evaluating Ethereum’s valuation trends is crucial for investment decisions.

Overvaluation in crypto markets

• Most tokens in crypto, including Ethereum and Layer 1s, are considered overvalued.

• Pretty much everything I would say is overvalued

  — Logan Jastremski

• This statement reflects a critical view of current crypto valuations.
• Understanding market valuation factors is essential for investors.
• The analysis indicates a strong market opinion on crypto valuations.
• Evaluating the factors influencing crypto valuations is crucial.
• This perspective offers insights into the current market dynamics.
• Investors need to be aware of overvaluation concerns in the crypto market.

Priority fees and stakeholder incentives

• Priority fees on blockchains are driven by trading volumes and provide real yield to stakeholders.

• Those priority fees ultimately get redistributed back to the stakeholders

  — Logan Jastremski

• Understanding blockchain economics is crucial for stakeholder incentives.
• This insight explains the economic mechanics behind fee distribution.
• Stakeholder incentives are driven by trading volume and fee structures.
• This perspective is important for understanding blockchain economics.
• Analyzing fee distribution models is crucial for stakeholders.
• This insight highlights the importance of trading volume in blockchain models.

Blockchains as databases

• Blockchains are fundamentally databases that connect isolated entities.

• If you really break down to what blockchains are they’re just databases

  — Logan Jastremski

• Understanding the basic function of blockchains is essential.
• This insight provides a simplified understanding of blockchain technology.
• Blockchains connect previously isolated entities through data.
• This perspective is crucial for grasping the role of blockchains in tech.
• Analyzing blockchain as a database offers insights into its value proposition.
• Understanding this function is important for technology and finance.

Profitability of crypto networks

• Crypto networks have low overhead costs compared to traditional exchanges.

• These crypto networks and the L1s themselves don’t really have a bunch of like cost overhead

  — Logan Jastremski

• This highlights a key advantage of crypto networks.
• Understanding operational cost structures is crucial for financial viability.
• Crypto networks are generally profitable due to low costs.
• This perspective is important for competitive positioning.
• Analyzing cost structures offers insights into crypto network profitability.
• Understanding this advantage is crucial for financial analysis.

Blockchain as a global ledger

• Blockchain technology serves as a global ledger, enhancing trading efficiency.

• It really is kind of just global ledger if you think about it

  — Logan Jastremski

• Understanding blockchain throughput is crucial for financial markets.
• This insight explains blockchain’s role in improving data synchronization.
• Blockchain enhances trading efficiency by synchronizing information.
• This perspective is important for understanding blockchain applications.
• Analyzing blockchain as a global ledger offers insights into its purpose.
• Understanding this function is crucial for financial systems.

Solana’s take rate comparison

• The current take rate on Solana is significantly higher than traditional markets.

• The take rate today is two and a half bps

  — Logan Jastremski

• Understanding the comparison between Solana’s take rate and traditional markets is crucial.
• This statement highlights potential opportunities or concerns.
• Analyzing Solana’s take rate offers insights into its market positioning.
• Understanding this comparison is important for evaluating Solana’s value.
• This perspective is crucial for understanding Solana’s economic model.
• Evaluating take rate differences offers insights into market dynamics.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.