💡Does Layer2 disperse the value of Ethereum?
Layer2 solutions such as Arbitrum, Optimism, and zkSync are widely used in the Ethereum network, solving the scalability problem of the main chain. Although some users and liquidity migrate to Layer2, will this disperse the value of Ethereum?
🔹Definition and purpose of Layer2
Layer2 improves transaction throughput, reduces transaction fees, improves user experience, and effectively alleviates the congestion problem of the main chain by transferring a large number of transactions to Layer2 for processing and then submitting them in batches to Layer1.
🔹Value dispersion perspective
User and liquidity migration: More users and liquidity migration to Layer2 may reduce transaction activities on the main chain, resulting in lower usage and demand. Token economics: Layer2 projects issue their own tokens, and users may be more inclined to hold and use these tokens rather than Ethereum (ETH), affecting the market demand and price of Ethereum.
🔹Value concentration and enhancement perspective
Network effect and security: Layer2 relies on the security of the Ethereum main chain, enhancing the core position and value of Ethereum. Improve scalability and attractiveness: Layer2 improves the scalability and user experience of the Ethereum network, attracting more developers and users to participate, and bringing more applications and ecosystem development. Fees and fuel: Layer2 transactions ultimately need to be settled in Layer1, and Ethereum benefits from this because each settlement requires the payment of ETH as a fuel fee.
🔹Summary
Layer2 does not disperse the value of Ethereum, but strengthens the overall ecosystem. Users and transaction activities are partially migrated to Layer2, but Ethereum's security and decentralization are still irreplaceable. By improving scalability and user experience, Layer2 may attract more users and developers, further enhancing the value and market position of Ethereum.
