#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 key to the Ethereum ecosystem and ETH assets being able 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, allowing it to compete with other L1s. While L2 will reduce value accumulation on L1 in the short term, in the long term, L2 will be beneficial to Ethereum and become a way for Ethereum to beat many 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, such as NFTs, trading, DeFi, and gaming, have migrated to L2, leading to a decrease in 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 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.
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.
L2 will be beneficial to Ethereum in the long run, as it will be able to serve more traffic, ultimately generating more fees than before L2 appeared.
L2 will be Ethereum's way to beat many emerging L1s, as it can provide faster transaction speeds and lower fees.