Alex Thorn, Head of Research at Galaxy, criticized many Ethereum layer-2 projects for retaining most transaction fees while contributing little back to Ethereum layer-1. He described these L2s as “ETH extractive,” pointing out that they don’t restake collected ETH and are largely controlled by private entities. Using Base (by Coinbase) as an example, Thorn noted that Optimism earns nearly 5 times more from Base than Ethereum does. While EIP-4844 has lowered L2 data costs, the debate over how much economic value L2s should return to Ethereum continues.

#Ethereum #Layer2 #GalaxyDigital #ETH #Coinbase #Optimism

https://x.com/intangiblecoins/status/1953068611045576945