Polygon Labs CEO Marc Boiron believes that the intense rivalry between Ethereum layer-2 networks is the “biggest problem” 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 repeatedly. He explained:
“Ethereum’s biggest problem is cannibalizing itself continuously via all L2s competing over devs, users and liquidity rather than competing outside of the Ethereum ecosystem. Microeconomics 101 would tell you this is a bad strategy. I don’t have the answer but it needs to be addressed.”
A number of crypto group members share Boiron’s perspective, asserting that Layer 2 networks ought to goal these outdoors the Ethereum ecosystem. Karthik Senthil, the enterprise associate at crypto hedge fund Lattice, said:
“L2s only become successful if they meaningfully grow the pie and attract the 99% of stuff (web2 included) that’s outside Ethereum today. If we fight over the same people that are already here, no one is winning anything.”
Notably, Boiron reposted a social media put up that urged the layer-2 networks to play the long-term sport and “champion each other wins.” The put up reads:
“As fragmentation and chain abstraction will soon be solved, L2s should reshape their views on the value of siphoning apps from one L2 to the other. Soon a successful application on x-L2 will provide a percentage uplift in value to y-L2 . Stealing applications is a cannibalization of that value.”
In the meantime, some group members argued that the competitors among layer-2s may finally improve Ethereum’s ecosystem.
Layer-2s recognition
Layer-2s are blockchain networks designed to boost 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 largest layer2 blockchain, recorded larger transactions per second than Ethereum mainnet in the previous day.
Moreover, at the starting of this month, the variety of energetic wallets using the networks surpassed five million. At the similar time, the complete worth of belongings locked on these platforms has exceeded $42 billion, and there are indications that the development may proceed.
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