Polygon Labs CEO Marc Boiron believes that the extraordinary rivalry between Ethereum layer-2 networks is the “largest drawback” dealing with the second-largest digital asset by market capitalization.
In an April 7 put up on social media platform X, Boiron emphasised how the competitors between these networks has led to Ethereum cannibalizing itself constantly. He explained:
“Ethereum’s largest drawback is cannibalizing itself constantly through all L2s competing over devs, customers and liquidity fairly than competing outdoors of the Ethereum ecosystem. Microeconomics 101 would inform you it is a dangerous technique. I don’t have the reply but it surely must be addressed.”
A number of crypto neighborhood members share Boiron’s perspective, asserting that Layer 2 networks ought to goal these outdoors the Ethereum ecosystem. Karthik Senthil, the enterprise accomplice at crypto hedge fund Lattice, said:
“L2s solely grow to be profitable in the event that they meaningfully develop the pie and appeal to the 99% of stuff (web2 included) that’s outdoors Ethereum in the present day. If we struggle over the identical folks which might be already right here, nobody is successful something.”
Notably, Boiron reposted a social media put up that urged the layer-2 networks to play the long-term recreation and “champion one another wins.” The put up reads:
“As fragmentation and chain abstraction will quickly be solved, L2s ought to reshape their views on the worth of siphoning apps from one L2 to the opposite. Quickly a profitable utility on x-L2 will present a proportion uplift in worth to y-L2 . Stealing functions is a cannibalization of that worth.”
In the meantime, some neighborhood members argued that the competitors amongst layer-2s might in the end improve Ethereum’s ecosystem.
Layer-2s recognition
Layer-2s are blockchain networks designed to reinforce Ethereum’s scalability. Over the previous years, they’ve gained vital recognition and adoption inside the crypto ecosystem.
Data from L2Beat reveals that the networks cumulatively course of 123 transactions per second, surpassing Ethereum’s mainchain by an element of 10.7. For context, Coinbase’s high-flying Base community and Arbitrum, the biggest layer2 blockchain, recorded greater transactions per second than Ethereum mainnet up to now day.
Moreover, firstly of this month, the variety of energetic wallets using the networks surpassed five million. On the identical time, the full worth of belongings locked on these platforms has exceeded $42 billion, and there are indications that the development might proceed.
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