According to a crypto bank analyst, concerns that Ethereum layer-2 scaling solutions are reducing mainnet revenue and affecting prices may be premature. Katalin Tischhauser from Sygnum Bank stated that it is too early to determine if Ethereum's scaling through layer 2s will harm the mainnet or result in overall growth. While Ethereum mainnet losing revenue to layer 2s was expected, optimizing scalability could generate revenue in new ways. Tischhauser mentioned that if layer 2 growth is significant, it should lead to overall Ethereum growth. The shift to layer 2s has impacted Ethereum fees, with daily fees now ranging from $1 million to $5 million, down from the consistent $30 million in previous years. Concerns arose when Uniswap announced a move to its layer 2 Unichain, potentially reducing Ethereum validators' annual revenue by $400-500 million. Continued scaling to layer 2s may affect Ether's price appreciation, as observed by VanEck's Matthew Sigel. Despite competition from other blockchains, Ethereum's scaling strategy has helped it maintain its position as a leading layer-1 blockchain. Read more AI-generated news on: https://app.chaingpt.org/news

#ETH