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#L2 Short-Term Competitive Ethereum#

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Ace Hot Topic Analysis

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Hot Topic Details

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 numerous new L1s. L2 is able to provide Ethereum with a way to remain a highly decentralized platform while supporting fast and cheap transactions, thus competing with other L1s. While L2 may reduce value accumulation on L1 in the short term, in the long run, L2 will be beneficial to Ethereum and become its way to beat numerous emerging L1s.

Ace Hot Topic Analysis

Analysis

Current analysis of L2 short-term competition with Ethereum suggests that L2 will indeed compete with Ethereum L1 in the short term, as many workloads that previously existed on L1 (NFTs, trading, DeFi, gaming) have migrated to L2, leading to a decrease in fees generated/burned on L1 in the past few years. However, in the long term, L2 will be the only way for the Ethereum ecosystem and ETH assets to compete with a large number of new L1s. L2 provides Ethereum with a way to remain a highly decentralized platform while still being able to support fast and cheap transactions that can compete with alt-L1s. Ultimately, L2 will bring more traffic to Ethereum, generating more fees than before the emergence of L2, which will help Ethereum defeat many new L1s.

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Public Sentiment · Discussion Word Cloud

Public Sentiment

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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 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.

L2 will be beneficial to Ethereum in the long run, as L2 will serve so much traffic that the fees generated will eventually exceed those generated before L2 appeared.

L2 will be the way for Ethereum to beat many emerging L1s.