#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 will be a key 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 supporting fast and cheap transactions, thus competing with other L1s. While L2 may reduce value accumulation on L1 in the short term, ultimately L2 will bring more traffic to Ethereum and help it defeat many emerging L1s.
Ace Hot Topic Analysis
Analysis
Currently, there are two perspectives on the competitive relationship between L2 and Ethereum L1: short-term competition and long-term mutual benefit. In the short term, L2 does compete with Ethereum L1, as many workloads that were originally on L1, such as NFTs, trading, DeFi, and gaming, have shifted to L2, leading to reduced fees on L1. 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. Ethereum emphasizes decentralization, and L2 can provide fast and cheap transactions while maintaining a high degree of decentralization, thus competing with other L1s. Ultimately, L2 may bring in more traffic, resulting in Ethereum generating more fees than it did before the emergence of L2. Therefore, L2 will reduce L1's value accumulation in the short term, but in the long run, L2 will be beneficial to Ethereum and become the way for Ethereum to defeat other 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 (NFTs, transactions, DeFi, gaming) have moved to L2, resulting in lower fees 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 high decentralization.
In the long run, L2 will be beneficial to Ethereum, as L2 will serve so much traffic that some of the fees currently generated by Ethereum will exceed those generated before L2 appeared.
L2 will be the way for Ethereum to beat many emerging L1s.