5 months ago
Polygon Labs CEO Marc Boiron believes that the aggravated rivalry betwixt Ethereum layer-2 networks is the “biggest problem” facing the second-largest integer plus by marketplace capitalization.
In an April 7 station connected societal media level X, Boiron emphasized however the contention betwixt these networks has led to Ethereum cannibalizing itself continuously. He explained:
“Ethereum’s biggest occupation is cannibalizing itself continuously via each L2s competing implicit devs, users and liquidity alternatively than competing extracurricular of the Ethereum ecosystem. Microeconomics 101 would archer you this is simply a atrocious strategy. I don’t person the reply but it needs to beryllium addressed.”
Several crypto assemblage members stock Boiron’s perspective, asserting that Layer 2 networks should people those extracurricular the Ethereum ecosystem. Karthik Senthil, the task spouse astatine crypto hedge money Lattice, said:
“L2s lone go palmy if they meaningfully turn the pastry and pull the 99% of worldly (web2 included) that’s extracurricular Ethereum today. If we combat implicit the aforesaid radical that are already here, nary 1 is winning anything.”
Notably, Boiron reposted a societal media station that urged the layer-2 networks to play the semipermanent crippled and “champion each different wins.” The station reads:
“As fragmentation and concatenation abstraction volition soon beryllium solved, L2s should reshape their views connected the worth of siphoning apps from 1 L2 to the other. Soon a palmy exertion connected x-L2 volition supply a percent uplift successful worth to y-L2 . Stealing applications is simply a cannibalization of that value.”
Meanwhile, immoderate assemblage members argued that the contention among layer-2s could yet heighten Ethereum’s ecosystem.
Layer-2s popularity
Layer-2s are blockchain networks designed to heighten Ethereum’s scalability. Over the past years, they person gained important popularity and adoption wrong the crypto ecosystem.
Data from L2Beat reveals that the networks cumulatively process 123 transactions per second, surpassing Ethereum’s mainchain by a origin of 10.7. For context, Coinbase’s high-flying Base network and Arbitrum, the largest layer2 blockchain, recorded higher transactions per 2nd than Ethereum mainnet successful the past day.
Additionally, astatine the opening of this month, the fig of progressive wallets utilizing the networks surpassed 5 million. At the aforesaid time, the full worth of assets locked connected these platforms has exceeded $42 billion, and determination are indications that the inclination could continue.
The station Rivalries among Ethereum layer-2s endanger the ecosystem’s future, says Polygon CEO appeared archetypal connected CryptoSlate.
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