According to U.Today, Andrew Huang, the founder of the Paradigm-backed Conduit platform, has expressed his belief that Ethereum's Layer 2 solutions (L2s) should be able to inherit its level of decentralization at a low cost. He emphasized that this should be the ultimate goal for Ethereum (ETH). Huang further stated that Ethereum, the largest smart contract platform, should aim to become a public good that maximizes decentralization. All of its L2s should be able to inherit the same level of decentralization in a cost-effective manner.
Huang also pointed out that creating artificial bottlenecks for L1/L1 interaction or maximizing fee transfer to L1 nodes is 'missing an opportunity'. He believes that the 'biggest opportunity' for Ethereum (ETH) lies in its unique status as a native currency of the internet. Huang's comments were in response to an analysis by Paradigm CTO Georgios Konstantopoulos, who suggested that 'forcing market structures' and overthinking might not be beneficial for the progress of L2s. Instead, L2 networks should focus solely on optimal upgradeability and accessibility, while 'interoperability' still appears to be a fabricated issue.
In other news, Ether (ETH) is currently trading at $3,462, marking a 2% increase in the last 24 hours. Trading volume has surged by 57% overnight, exceeding $10 billion, according to CoinMarketCap data. However, the USD-denominated total value locked in Ethereum's L2s ecosystem is continuing to decline. Over the past month, it has dropped from $49.3 billion to $42.1 billion, as per L2Beat. Arbitrum (ARB), previously the undisputed leader by total value locked (TVL), is losing its traction, with its dominance falling below 40%. Its closest competitor, Base (BASE), is nearing 17%. Meanwhile, OP Mainnet is trying to maintain above the $15 billion level, and recent newsmaker Blast (BLAST) accounts for 6.9% of TVL in Ethereum's L2 ecosystem.