#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 done 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 provides a way for Ethereum to remain a highly decentralized platform while still being able to support fast and cheap transactions that can compete with other L1s. Although L2 may reduce value accumulation on L1 in the short term, in the long term, L2 will be beneficial to Ethereum and become the way for Ethereum to beat 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 become key to the Ethereum ecosystem and ETH assets competing with other new L1s.The emergence of L2 has led to some workloads that were originally on L1, such as NFTs, trading, DeFi, and gaming, being shifted to L2, thereby reducing fee generation and burning on L1. This will indeed reduce L1's value accumulation in the short term.However, the advantage of L2 is that it can provide fast and cheap transactions while maintaining Ethereum's highly decentralized nature. This will enable Ethereum to compete with other emerging L1s and attract more users.In the long run, L2 traffic will continue to grow, eventually potentially exceeding the fees generated by L1 before the emergence of L2. Therefore, L2 will become an important part of the Ethereum ecosystem and help Ethereum maintain its leading position in the competition.
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, leading to lower L1 fees.
L2 is the only way for the Ethereum ecosystem and ETH assets to compete with a large number of new L1s.
L2 will be beneficial to Ethereum in the long run and will be the way Ethereum beats many new L1s.
L2 provides a way for Ethereum to remain a highly decentralized platform while still being able to support fast, cheap transactions that compete with alt-L1s.