Polygon Labs CEO Marc Boiron believes the “largest downside” going through the second-largest digital asset by market capitalization is the extraordinary competitors amongst Ethereum’s Layer 2 community.

In an April 7 put up on social media platform X, Boisron highlighted how competitors between these networks continues to trigger cannibalization of Ethereum.he defined:

“The largest downside with Ethereum is that it’s frequently cannibalizing itself with all L2s competing for builders, customers, and liquidity reasonably than competing outdoors the Ethereum ecosystem. Microeconomics For those who learn Science 101, you'll see that that is the unsuitable technique. We don't have the solutions, however we have now to cope with it.”

A number of members of the cryptocurrency group share Boisron's views, arguing that Layer 2 networks ought to goal networks outdoors the Ethereum ecosystem. Kartik Senthil, enterprise associate at crypto hedge fund Lattice, mentioned:

“L2 will solely succeed if it meaningfully expands the pie and attracts 99% of what’s outdoors of Ethereum immediately (together with web2). You gained't get something both.”

Notably, Boisron reposted a social media put up urging layer 2 networks to play the lengthy sport and “win the championship for one another.”put up learn:

“As fragmentation and chain abstractions are quickly resolved, L2s must reframe their view of the worth of siphoning apps from one L2 to a different. is profitable, the worth of y-L2 will increase by a proportion. Stealing an software cannibalizes its worth.”

However, some group members argued that competitors between layer 2 may in the end strengthen the Ethereum ecosystem.

Layer 2 recognition

Layer 2 is a blockchain community designed to boost Ethereum's scalability. Over the previous few years, it has gained important recognition and adoption inside the cryptocurrency ecosystem.

In line with L2Beat knowledge, the community cumulatively processes 123 transactions per second, outperforming Ethereum's foremost chain by an element of 10.7. For context, Coinbase's superior Base community and Arbitrum, the biggest Layer 2 blockchain, recorded larger transactions per second than Ethereum's mainnet previously day.

Moreover, as of the start of this month, the variety of energetic wallets using the community is exceeded 5 million. On the identical time, the overall quantity of property locked on these platforms exceeds $42 billion, and there are indicators that this pattern might proceed.

The put up Ethereum Layer 2 competitors threatens the way forward for the ecosystem, says Polygon CEO first appeared on currencyjournals.

(Tag translation) Ethereum