The Development Prospects of $ETH L1 and L2

Continuous Optimization of Layer 1 Mainnet

The Ethereum mainnet enhances its competitiveness as a foundational layer through continuous upgrades aimed at improving performance and reducing transaction fees.

Rapid Development of Layer 2 Solutions

L2 scaling solutions (such as Arbitrum, Optimism, and zkSync) significantly increase transaction speed and reduce fees by processing transactions outside of the mainnet. These solutions not only alleviate the burden on the mainnet but also attract a large number of users and funds.

Synergy between L1 and L2

While L2 solutions enhance the overall performance of the Ethereum network, they also bring more transaction volume and fee revenue to L1. This synergy contributes to the healthy development of the Ethereum ecosystem and further solidifies ETH's market position.