#L2 Short-Term Competitive Ethereum#
Hot Topic Overview
Overview
Currently, L2 is in competition with Ethereum L1 in the short term, as many workloads that were originally on L1, such as NFTs, trading, DeFi, and gaming, have moved to L2, resulting in reduced fees generated on L1. However, in the long term, L2 is considered the only way for the Ethereum ecosystem and ETH assets to compete with a large number of new L1s. L2 can provide Ethereum with a way to remain a highly decentralized platform while also supporting fast and cheap transactions that can compete with other L1s. While L2 may reduce value accumulation on L1 in the short term, in the long term, L2 will benefit Ethereum and become the way for Ethereum to defeat many emerging L1s.
Ace Hot Topic Analysis
Analysis
The prevailing view on the relationship between L2 and Ethereum L1 is that L2 will compete with Ethereum L1 in the short term, but in the long run, L2 will be the only way for the Ethereum ecosystem and ETH assets to compete with a large number of new L1s.The emergence of L2 has led to many workloads that were originally on L1 (NFTs, trading, DeFi, gaming) being transferred to L2, thereby reducing fee generation and burning on L1. However, the low cost and high efficiency of L2 can attract more users and provide Ethereum with a way to remain a highly decentralized platform while still being able to support fast and cheap transactions that compete with other L1s.While L2 will reduce L1's value accumulation in the short term, in the long run, L2 will bring more traffic to Ethereum and eventually surpass the fees generated before the emergence of L2. Therefore, L2 will be a key factor for Ethereum to defeat many emerging L1s.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
L2 will compete with Ethereum L1 in the short term, as many workloads have moved to L2, resulting in lower fees generated on L1.
L2 is the only way for the Ethereum ecosystem and ETH assets to compete with a large number of new L1s, as L2 can provide fast and cheap transactions while maintaining Ethereum's decentralization.
In the long run, L2 will be beneficial to Ethereum as it will be able to serve more traffic and eventually surpass the fees generated before L2 emerged.
L2 will be the way for Ethereum to beat many emerging L1s.