Ethereum’s Layer 2 ecosystem has grown into one of the most important parts of the network, but I think there is still a real debate about what that growth means for ETH itself.
On one side, Layer 2 networks clearly solve one of Ethereum’s biggest problems: cost and scalability. Rollups can process transactions more cheaply, improve user experience and make applications more practical for everyday use. From that perspective, stronger Layer 2 adoption should expand the overall Ethereum ecosystem and increase demand for Ethereum-based infrastructure.
The counterargument is that too much activity moving away from mainnet could weaken Ethereum’s direct economic role. If users spend most of their time on Layer 2 networks, pay fees there and interact with applications that barely touch mainnet, it becomes reasonable to ask how much value ultimately accrues back to ETH.
I think settlement is the key part of this discussion. Even if execution moves to Layer 2, Ethereum can still remain the security and settlement layer underneath a large part of the ecosystem. That would make ETH less dependent on individual transaction fees and more dependent on its role as the base infrastructure securing the broader stack.
There is also increasing competition between Layer 2 networks themselves. Users now have to choose between multiple rollups, bridges and ecosystems, each with different liquidity, fees and application support. Fragmentation could become a real issue if moving assets between networks remains confusing or inefficient.
From an investment perspective, the question is whether Layer 2 growth expands Ethereum’s total addressable market or gradually shifts economic activity toward separate networks and tokens.
Do you think Layer 2 growth is ultimately bullish for ETH?
Which matters more for Ethereum long term: mainnet activity, settlement demand, Layer 2 adoption or the amount of value secured by the network?
And do you expect the largest Layer 2 networks to strengthen Ethereum, or eventually compete with it for users, liquidity and value capture?