Originally published on: October 25, 2024
Are Ethereum layer-2 scaling solutions really impacting the mainnet’s revenue, or is it all just speculation? According to Katalin Tischhauser, head of research at Sygnum Bank, it’s too early to make that call.
Tischhauser believes that the current shift towards layer 2 solutions on Ethereum may not be cannibalistic of revenue after all. While fees on the mainnet have taken a hit, there is potential for net growth as scalability is optimized.
With daily Ethereum fees dropping significantly, concerns over revenue have surfaced. But the move towards layer 2 solutions could actually pave the way for new revenue streams that were previously untapped. This shift may even lead to Ethereum experiencing substantial growth in the long run.
Despite facing fierce competition from other blockchains, Ethereum’s scaling strategy has helped it maintain its position as a leading layer-1 blockchain. And experts like Henrik Andersson believe that Ether may bounce back and even hit a new all-time high in the future.
As the crypto landscape continues to evolve, only time will tell how Ethereum’s scaling solutions will impact its revenue and growth potential. Stay tuned for more insights on the latest developments in the crypto market.
