#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 can 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 L1's value accumulation in the short term, in the long run, L2 will be beneficial to Ethereum and become the way for Ethereum to beat many emerging L1s.
Ace Hot Topic Analysis
Analysis
Currently, L2 does compete with Ethereum L1 in the short term, as many workloads that once existed on L1, such as NFTs, trading, DeFi, and gaming, have moved to L2, resulting in reduced fees generated on L1 over 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 a way for Ethereum to remain a highly decentralized platform while still being able to support fast and cheap transactions that can compete with alt-L1s. While L2 will reduce value accumulation on L1 in the short term, in the long term, L2 will be beneficial to Ethereum and will be the way for Ethereum to beat 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 L1 fees.
L2 is the only way for the Ethereum ecosystem and ETH assets to compete with a large number of new L1s, as it can provide fast and cheap transactions while maintaining Ethereum's high decentralization.
In the long run, L2 will be beneficial to Ethereum, as it will serve so much traffic that the fees generated will eventually exceed those generated before L2 emerged.
L2 will be the way for Ethereum to beat many emerging L1s.