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Ethereum thrives as l2 solutions boost growth

Ethereum's Bright Future | Layer 2 Solutions Powering Growth

By

Omar Ali

Jul 4, 2025, 04:36 PM

Edited By

David Lee

Updated

Jul 5, 2025, 01:38 PM

2 minutes of duration

A graphic showing Ethereum's logo with upward arrows representing growth, and symbols for Layer 2 solutions around it. Major company logos like Deutsche Bank and Coinbase are also visible, indicating their support.
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Ethereum's trajectory is looking promising, energized by major corporations embracing Layer 2 (L2) solutions. Discussions are ongoing regarding the true impact of these developments, with a mix of skepticism and optimism among the community.

Major Players Join the L2 Movement

Big names like Coinbase, Sony, and Deutsche Bank are actively developing Ethereum's L2 solutions. Previously labeled as "parasites" by some critics, these innovations are now gaining validation as institutions show increasing interest. Deutsche Bank's recent L2 mainnet launch using ZKsync is considered groundbreaking for regulated finance on Ethereum, pushing the Total Value Locked (TVL) in L2s to a remarkable $33 billion this year.

"Ethereum is better off with L2s," shared a vocal member from the community, highlighting the positive contributions of these solutions.

Mixed Feelings: Community Views on L2s

The community's perspective remains divided. Some commenters expressed their concerns:

"If they don't share any revenue, what's the point?"

While others maintain that L2s significantly enhance Ethereum's scalability, making transactions cheaper and faster. The sentiment around L2s appears generally positive, with many asserting they are crucial for Ethereum's ongoing success.

Key Insights from Ongoing Conversations

  • Imperative of Revenue Sharing: A significant concern among advocates persists regarding how L2s distribute financial benefits.

  • Value Augmentation: Many community members argue that L2s enhance the Ethereum network rather than detract from it.

  • Institutional Momentum: The growing involvement of large institutions supports the view that L2s play a vital role in Ethereum's future.

Highlighted Comments

  • "My zkSync sense is tingling! It will definitely join the top three L2s in the future!"

  • "L2s have truly supercharged Ethereum, they are helping, not harming."

Noteworthy Predictions and Developments

Experts forecast a notable increase in transaction volumes tied to the integration of L2 solutions within the Ethereum ecosystem. Transactions could soar by at least 25% within the next year, spurred by the demand for lower fees and quicker transactions. Projections indicate that the TVL in L2s could rise to $50 billion by the end of 2026.

Historical Context

As the rise of Ethereum's L2 solutions echoes the early days of the internet, skepticism still lingers. Yet history shows that transformative technologies can reshape entire industries. The question remains: Are L2s the catalysts for a new financial revolution?

Key Takeaways

  • ✦ L2 solutions are critical to Ethereum’s expansion.

  • πŸ“Š The TVL in L2s has skyrocketed to $33 billion in 2025.

  • πŸ”‘ Ongoing discussions focus on the need for revenue sharing among L2s.

Stay tuned to see how these developments will shape the future of Ethereum and decentralized finance.