In the first quarter of 2024, there has been a significant shift in the cryptocurrency landscape, with close to $30 billion worth of assets moving from Ethereum's Layer 1 (L1) to various Layer 2 (L2) networks, marking a fivefold increase compared to the previous year. Arbitrum has emerged as the leader, attracting 42% of the bridged funds. This migration is attributed to the enhanced user experience offered by L2s, including free instant bridging from centralized exchanges, lower transaction fees, and more reliable transaction execution compared to alternatives like Solana. Despite Ethereum's high fees at the L1 level, it remains a highly robust, secure, and decentralized blockchain, now offering sub cent transactions through L2s. The growth of L2 solutions, with over 100 projects on Ethereum and beyond, and fees reduced by approximately 80x, is seen as a pivotal development in the industry. Notably, BlackRock's decision to use Ethereum L1 for its reliability and decentralization, despite higher fees, underscores Ethereum's position in the market. The transition to L2s is expected to significantly scale the Ethereum user base and usher in a new era of crypto adoption, with BlackRock moving 100M USDC to Ethereum L1.
The Eth L1 and our L2s are a winning model to scale crypto to global ubiquity. The L1 is the best fit by far for whales, L2s, govts, and corps who want neutrality and risk minimization. L2s are great for a world that's going to need many chains. People want technical scaling,…
Ethereum is the world's most secure, decentralised, credibly neutral and censorship-resistant settlement layer. BlackRock recognises this, do you?
Ethereum L2s will scale the existing Ethereum user base by ~2 orders of magnitude this cycle imo a new wave of ETH whales will be born from what is still to come if that does not excite you and entice you to be early and get onto L2s, then i don't know what else will
They weren’t because they don’t plan for those tokens to move around on-chain too much. The reason they chose Ethereum is probably because they’re an FI & Ethereum is the conservative choice. Doesn’t diminish Eth, just the fact they went w-L1 is a huge signal. https://t.co/vLhy2lW6SY
I've been having the argument for years that big funds would pick Ethereum regardless of fees. Everyone claimed existing fringe funds didn't count, and real funds would choose "cheap" "fast" chains. No. Blackrock chose the most dependable and decentralized chain that can run…
BlackRock is happy to pay high fees on the Ethereum L1 for their 100M USDC to enjoy best-in-class reliability and rub shoulders with other whales while everyone else can use many L2 rollups and validiums for pennies or less Ethereum is scaling the way the world actually works
you are going to have probably 2 (maybe 3) general purpose L2s become MASSIVE hubs for the Ethereum universe each will secure hundreds of billions of dollars in value you'll be able to do almost any trade you need on any of them with huge liquidity, low fees, and great UX…
Do you use ETH anymore? I've noticed I barely touch L1. 90%+ of what I do is on L2s or on Solana. Is there anything on ETH worth doing for $50 per tx?
Ethereum L2s have reduced fees by ~80x in some cases and now have better UX than some of the most popular alt-L1s and with transactions which actually go through consistently you'd be a fool to think this wasn't a gamechanger as this cycle has barely started from a retail…
Now that market has sobered up some, some thoughts: -L2 experience is now much better post Dencun. Obvious if you try -Solana experience has degraded. Lots more failed txs. Fee markets still very broken. Hope the changes they're pushing in a couple weeks make a difference. TBD… https://t.co/YXfuRtePO8
🚨🚨 Close to $30 billion worth of assets have moved from Ethereum L1 to L2s: Arbitrum $10.6B OP Mainnet $5.2B Blast $2.5B Starknet $1.4B Base $949M Metis $772M zkSync Era $746M Mantle$512M dYdX $395M Linea $389M Manta Pacific $285M Immutable $264M Polygon zkEVM$158M Loopring… https://t.co/Ugg5wqgV4C
Despite the recent market downturn, #Ethereum investors are shifting an increasing amount of #ETH to L2 networks. .oO are working. https://t.co/m111OLLRvw
Introducing the L2 Landscape for Q1 2024: A market map of 100+ projects building Layer 2 blockchains There is an explosion of new L2s on Ethereum, Bitcoin, and beyond. Since the launch of @arbitrum and @Optimism, we have seen significant growth of L2s. Let’s check it out 👇 https://t.co/OGJy5zPjnz
Ethereum is the most robust, secure, and decentralized blockchain today. Despite its high L1 fees, it has remained reliable at all times. With L2s, we have reliability + sub cent transactions.
Hot take but the L2 experience is superior to #Solana right now. Free instant bridging from CEX to L2, cheap fees, and most importantly, when you submit a transaction, you can be reasonably sure it will go through with decent execution. My best move this cycle was being open…
Users are moving their crypto assets from #Ethereum to Layer 2 networks (L2s) in record numbers. Over $25 billion has been bridged in the first quarter, a 5x increase compared to 2023. #Arbitrum is the current leader, attracting 42% of the bridged funds, followed by #OP. https://t.co/CmHKiptiHf