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Polygon Labs CEO Marc Boiron believes that the extreme rivalry between Ethereum layer-2 networks is the “largest drawback” going through the second-largest digital asset by market capitalization.
In an April 7 put up on social media platform X, Boiron emphasised how the competitors between these networks has led to Ethereum cannibalizing itself repeatedly. He defined:
“Ethereum’s largest drawback is cannibalizing itself repeatedly through all L2s competing over devs, customers and liquidity fairly than competing outdoors of the Ethereum ecosystem. Microeconomics 101 would inform you it is a unhealthy technique. I don’t have the reply nevertheless it must be addressed.”
A number of crypto group members share Boiron’s perspective, asserting that Layer 2 networks ought to goal these outdoors the Ethereum ecosystem. Karthik Senthil, the enterprise accomplice at crypto hedge fund Lattice, stated:
“L2s solely turn into profitable in the event that they meaningfully develop the pie and entice the 99% of stuff (web2 included) that’s outdoors Ethereum immediately. If we battle over the identical individuals which can be already right here, nobody is successful something.”
Notably, Boiron reposted a social media put up that urged the layer-2 networks to play the long-term recreation and “champion one another wins.” The put up reads:
“As fragmentation and chain abstraction will quickly be solved, L2s ought to reshape their views on the worth of siphoning apps from one L2 to the opposite. Quickly a profitable software on x-L2 will present a share uplift in worth to y-L2 . Stealing functions is a cannibalization of that worth.”
In the meantime, some group members argued that the competitors amongst layer-2s may finally improve Ethereum’s ecosystem.
Layer-2s reputation
Layer-2s are blockchain networks designed to boost Ethereum’s scalability. Over the previous years, they’ve gained vital reputation and adoption inside the crypto ecosystem.
Knowledge from L2Beat reveals that the networks cumulatively course of 123 transactions per second, surpassing Ethereum’s mainchain by an element of 10.7. For context, Coinbase’s high-flying Base community and Arbitrum, the biggest layer2 blockchain, recorded increased transactions per second than Ethereum mainnet previously day.
Moreover, at the start of this month, the variety of lively wallets using the networks surpassed 5 million. On the similar time, the entire worth of property locked on these platforms has exceeded $42 billion, and there are indications that the development may proceed.
The put up Rivalries amongst Ethereum layer-2s threaten the ecosystem’s future, says Polygon CEO appeared first on CryptoSlate.
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