Ethereum’s L2 Scaling: Unique Value or Liquidity Silos?

Ethereum’s L2 Scaling: Unique Value or Liquidity Silos?
This article was prepared using automated systems that process publicly available information. It may contain inaccuracies or omissions and is provided for informational purposes only. Nothing herein constitutes financial, investment, legal, or tax advice.

Ethereum’s multi-layered scaling approach through diverse L2 solutions offers unique flexibility but raises concerns about liquidity fragmentation. Avail co-founder Anurag Arjun highlights the experimental potential of this architecture, while critics point to its impact on ETH’s price performance.

  • Ethereum's L2 diversity allows teams to experiment with different block times and execution environments, creating a unique ecosystem of high-throughput chains.
  • Critics argue Ethereum's L2-centric approach silos liquidity and harms ETH's price, while proponents see it as a strength enabling innovation.
  • Ethereum base layer fees dropped to $0.16 (5-year low) in April 2025, reflecting declining demand and institutional disengagement per Santiment data.
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