Ever scrolled through X (formerly Twitter) and stumbled upon a crypto insight that just clicks? That's what happened when Token Terminal dropped this gem: a simple breakdown of Ethereum into three key parts. Let's dive in and make sense of it, especially for those of us knee-deep in the wild world of meme tokens.

The tweet in question, posted on September 13, 2025, reads: "3 Ethereum's 👇 🧬 EVM (the tech) 👥 L1 & some L2s (the business) 🔷 ETH (the equity*) * The most liquid public equities are also used as (i) currencies and (ii) savings or store of value instruments." Accompanied by a stunning futuristic illustration that captures the essence of Ethereum's vast ecosystem.

At first glance, it might seem cryptic, but it's a clever analogy comparing Ethereum to a tech company. Think of it like Apple: the iOS operating system is the tech, the App Store and services are the business, and AAPL stock is the equity. Ethereum follows a similar structure. Here's the breakdown:

The Tech: EVM (Ethereum Virtual Machine)

The Ethereum Virtual Machine (EVM) is the beating heart of Ethereum's technology. It's essentially a decentralized computer that executes smart contracts - those self-running pieces of code that power everything from DeFi apps to NFT marketplaces. The EVM ensures that code runs consistently across thousands of nodes worldwide, making Ethereum secure and reliable.

For meme token creators, the EVM is a game-changer. It allows you to deploy tokens on Ethereum-compatible chains without reinventing the wheel. Whether you're launching a dog-themed coin or a viral cat meme, the EVM handles the heavy lifting, ensuring your token interacts seamlessly with wallets, exchanges, and other dApps.

The Business: L1 & Some L2s

Here, L1 refers to the Ethereum mainnet itself - the base layer where all transactions ultimately settle. L2s, or Layer 2 solutions like Optimism, Arbitrum, or Base, are scaling networks built on top of L1 to handle more transactions cheaply and quickly.

Token Terminal calls this "the business" because these layers are where the action happens: fees are collected, validators earn rewards, and ecosystems thrive. It's like the revenue-generating side of a company. Some L2s are tightly integrated with Ethereum, sharing its security while boosting throughput.

Meme tokens love L2s. The low fees on chains like Base have fueled explosions in meme coin activity, from Pump.fun launches to community-driven hype. Without these layers, the high gas fees on L1 would kill the fun (and affordability) for retail traders and creators.

The Equity: ETH

Finally, ETH - the native token of Ethereum. Token Terminal likens it to equity because holding ETH gives you a stake in the network's success. As more activity happens on Ethereum (fees burned via EIP-1559, staking rewards), ETH's value can appreciate. Plus, as the footnote points out, top equities like USD or gold often double as currencies and stores of value - just like ETH, which you can spend, stake, or hodl.

In the meme token space, ETH is the fuel. You need it to pay gas fees, swap on DEXes like Uniswap, or even bridge to L2s. Many meme projects are ERC-20 tokens on Ethereum, directly tied to ETH's liquidity and market dynamics.

This framework from Token Terminal isn't just academic; it's a practical lens for understanding why Ethereum dominates the smart contract space. With over 60% of DeFi TVL and a booming L2 ecosystem, it's the go-to for innovators, including meme maestros.

If you're building or trading meme tokens, grasping these "three Ethereums" can sharpen your strategy. Keep an eye on EVM upgrades (like the upcoming Prague hard fork), L2 innovations, and ETH price action - they're all interconnected.

What do you think? Does this analogy hold up, or is Ethereum more like a nation-state? Drop your thoughts in the comments, and follow us at Meme Insider for more breakdowns on the crypto memes shaping blockchain.