A recent analysis by Polygon Labs CEO Marc Boiron suggests that the ongoing rivalry between Ethereum layer-2 networks poses a significant challenge to the second-largest digital asset by market capitalization.
Boiron took to social media to express his concerns, stating that the competition among these networks is causing Ethereum to continuously cannibalize itself. He emphasized that instead of competing within the Ethereum ecosystem, these networks should focus on attracting developers, users, and liquidity from outside the existing pool. Other members of the crypto community echoed Boiron’s sentiments, emphasizing the importance of expanding the pie by targeting users beyond Ethereum’s current ecosystem.
The CEO also shared a post advocating for layer-2 networks to collaborate and champion each other’s successes in the long term, rather than engaging in competition that could potentially cannibalize value.
While some community members believe that the rivalry among layer-2 networks could ultimately benefit Ethereum’s ecosystem, others caution that it could hinder the platform’s growth.
Layer-2 networks have seen a rise in popularity in recent years as they offer solutions to Ethereum’s scalability issues. Data from L2Beat indicates that these networks collectively process 123 transactions per second, which is significantly higher than Ethereum mainnet’s capabilities. The number of active wallets using layer-2 networks has surpassed five million, with over $42 billion worth of assets locked in these platforms.
As the rivalry among Ethereum layer-2 networks continues to intensify, the future of the ecosystem remains uncertain.
