Polygon Labs CEO Marc Boiron believes that fierce competitors amongst Ethereum’s second-tier networks is the “greatest drawback” going through the second-largest digital asset by market worth.
In an April 7 submit on social media platformhe explained:
“The most important drawback with Ethereum is that each one L2s are cannibalizing themselves by competing for builders, customers, and liquidity, somewhat than competing exterior the Ethereum ecosystem. Microeconomics 101 will inform you it is a dangerous technique. I don’t have the reply, however the issue must be addressed.”
Some members of the cryptocurrency neighborhood agree with Boiron that layer 2 networks ought to goal networks exterior of the Ethereum ecosystem. Karthik Senthil, enterprise accomplice at cryptocurrency hedge fund Lattice, mentioned:
“L2 will solely succeed if it meaningfully grows the pie and attracts 99% of what’s exterior of Ethereum at the moment (together with web2). If we battle for a similar people who find themselves already right here, nobody will win something. “
Notably, Boiron retweeted a social media submit urging second-tier networks to play the lengthy sport and “assist one another in victory.”submit read:
“With fragmentation and chain abstractions quickly to be resolved, L2s ought to reshape their views on the worth of transferring functions from one L2 to a different. Quickly, profitable adoption on x-L2 will y-L2 supplies a share enchancment. Stealing apps is consuming away at that worth.”
On the identical time, some neighborhood members consider that competitors between Layer-2 could in the end strengthen the Ethereum ecosystem.
Reputation of Layer-2
Layer-2 is a blockchain community designed to boost Ethereum’s scalability. Over the previous few years, they’ve gained super recognition and adoption throughout the crypto ecosystem.
Information from L2Beat reveals that the community processes a cumulative 123 transactions per second, 10.7 instances greater than the Ethereum important chain. For context, Coinbase’s quickly rising Base community and Arbitrum, the most important Layer 2 blockchain, recorded greater transaction volumes per second than the Ethereum mainnet over the previous day.
Moreover, at first of the month, the variety of lively wallets utilizing the community Breaking through five million. In the meantime, the whole worth of belongings locked on these platforms has exceeded $42 billion, and there are indicators that this development could proceed.
The CEO of Polygon first said on CryptoSlate that the post-competition between Ethereum layer 2 threatens the way forward for the ecosystem.
