#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 (NFTs, trading, DeFi, gaming) have moved to L2, resulting in reduced fees generated on L1. 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 is able to provide Ethereum with a way to remain a highly decentralized platform while still being able to support fast and cheap transactions that compete with alt-L1s. While L2 will reduce L1's value accumulation 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.
Ace Hot Topic Analysis
Analysis
Current analysis of the short-term competition between L2 and Ethereum suggests that L2 will indeed compete with Ethereum L1 in the short term. This is because 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 run, L2 will be the only way for the Ethereum ecosystem and ETH assets to compete with a large number of new L1s. This is because one of Ethereum's greatest strengths is its emphasis on decentralization, and L2 provides a way for Ethereum to maintain 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, exceeding the fees generated before the emergence of L2, thus helping Ethereum 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 L1 fees.
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 L2 will attract a large amount of traffic, and the fees generated will eventually exceed those generated before L2 appeared.
L2 will be the way for Ethereum to beat many emerging L1s.