L2s are in deep trouble. Revenue for L2s outside of @base, | AvgJoesCrypto on Binance Square

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L2s are in deep trouble.
Revenue for L2s outside of @base, @arbitrum, and @Optimism has collapsed. 
In May, they collectively* accounted for less than $1 million in revenue, down 98% from ATHs in March 2024 ($53.8 million). 
*Only includes L2s with data on @growthepie_eth

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Ethereum L2s are in trouble... is Bitcoin the solution? A Key Takeaway from my latest @MessariCrypto report, "Between a Rock and a Hard Place: L2 Economics." Shrinking fee revenues, @base ’s dominance, intensifying competition from other L2s and Ethereum L1, and valuations detached from fundamentals have put most L2s on unstable footing. Surviving this environment will require bold strategic shifts. Perhaps the boldest of them all is a pivot to Bitcoin. The Bitcoin L2 opportunity is interesting for 3 main reasons: 1) The Bitcoin network itself cannot offer smart contract capabilities or other functionalities offered by L2s, unlike Ethereum. 2) There are no entrenched incumbents in the ecosystem. Using bridged BTC as a proxy for adoption, no single network holds more than roughly 30% of the total supply, with most holding well below 10%. New entrants should have no trouble competing. 3) $BTC, the asset, offers the strongest economic base out of all cryptoassets. Some teams, like @Starknet, are already making this shift to Bitcoin. Over time, I fully expect more Ethereum L2s to "abandon ship" and pivot to the Bitcoin ecosystem.

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Ethereum L2s are in trouble... is Bitcoin the solution? A Key Takeaway from my latest @MessariCrypto report, "Between a Rock and a Hard Place: L2 Economics." Shrinking fee revenues, @base’s sweeping market share, intensifying competition from other L2s and Ethereum L1, and valuations detached from fundamentals have put most L2s on unstable footing. Surviving this environment will require bold strategic shifts. Perhaps the boldest of them all is a pivot to Bitcoin. The Bitcoin L2 opportunity is interesting for 3 main reasons: 1) The Bitcoin network itself cannot offer smart contract capabilities or other functionalities offered by L2s, unlike Ethereum. 2) There are no entrenched incumbents in the ecosystem. Using bridged BTC as a proxy for adoption, no single network holds more than roughly 30% of the total supply, with most holding well below 10%. New entrants should have no trouble competing. 3) $BTC the asset, offers the strongest economic base out of all cryptoassets. Some teams, like @Starknet, are already making this shift to Bitcoin. Over time, I fully expect more Ethereum L2s to "abandon ship" and pivot to the Bitcoin ecosystem.

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