Layer 2 madness

Everyone and their grandma now want to have their own Layer 2.

I can see why; the fees are delicious. 💰_💰

Just 3 months after Coinbase launched its Base L2, they already had over $8 million in fees. That translates to about $4.6 million in revenue, according to TK Research.

But what about other effects? Do you think demand will keep up with every exchange, DAO, or protocol having its own custom layer?

”Bridging is so fun; give me more.” Said no one ever. 💀

Is it the right way to go where you can make fast money?

It might make sense for a very narrow view of the future, but what about the long-term effects? Fracturing liquidity further through dozens of new L2s can’t be the solution.

It feels more like you are squeezing your audience dry and farming the airdrop hunters for transaction fees.

The result?
🔥 A burnt fanbase. 🪦

But maybe I’m overly sceptical.

What do you think about the rising trend of launching L2s? Is fractured liquidity a non-problem?

#Layer2Solutions #AirdropHunter