Eseandre Mordi
⬤ Ethereum is hitting a potential turning point as co-founder Vitalik Buterin publicly challenged the network's long-standing reliance on Layer-2 solutions. Buterin stated that the original Layer-2 vision no longer makes sense, calling for a completely new path forward. The comments are being described as Ethereum's most significant decision since The Merge.
⬤ The shift follows several key developments. Layer-2 networks have failed to meaningfully decentralize despite years of focus on that approach. Meanwhile, Ethereum's mainnet is now scaling faster than expected, reducing the urgency of external scaling layers. Gas fees on Ethereum have also dropped sharply to around $0.01, weakening one of the core arguments for Layer-2 adoption.
The original Layer-2 vision no longer makes sense. We need a completely new path forward.
⬤ Major Layer-2 networks are now facing pressure to redefine their purpose. Platforms like Arbitrum, Optimism, and Base need to justify their existence beyond basic scaling. The narrative shift is being framed as bullish for ETH since stronger Layer-1 performance could drive more value directly to the Ethereum mainnet. However, it's considered bearish for Layer-2 tokens including ARB, OP, and POL, which may face an identity crisis under this new framework.
⬤ This marks a fundamental change in how Ethereum's growth is expected to unfold. A more capable and efficient mainnet could reshape network economics and alter sentiment across the broader crypto space, while the rethinking of the Layer-2 model signals a transition period for the Ethereum ecosystem as its scaling narrative evolves.
Eseandre Mordi
