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How does restaking affect alt-L1 coins?

Etherum Reddit

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ETH is the token with the most amount staked of any blockchain. Restaking, introduced by Eigenlayer, is the idea of using staked ETH for more than just validating blocks on Ethereum. It can be used to validate information on oracle networks, l2s, and potentially alternative l1s.

L1 tokens are also used to validate blocks on their respective network, but they have significantly less staked than ETH on Ethereum. If ETH is used instead for validation on these networks, how does that affect the demand for L1 tokens? Surely there are still some use cases for these tokens, such as governance.

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