“While L2s are supposed to service the base layer, their proliferation may compete with the base layer for resources such as fees, developers, and liquidity,” said Rines. “If the bulk of transactions take place on L2s, the economic incentives upholding the L1 may be diluted as validators’ fees evaporate. Furthermore, reliance on L2s could also fracture activity, weakening the cohesion and interoperability of the Ethereum ecosystem.”
Wintermute to Provide Liquidity Hong Kong Bitcoin (BTC) and Ether (ETH) ETFs
“Crypto ETFs provide a means for investors at all levels to enter into the world of digital assets through a...