- Synthetix and Aave drive renewed activity on Ethereum L1
- Ronin, Celo, and Phala pivot to Ethereum Layer 2
- DeFi momentum shifts focus back to Ethereum mainnet
DeFi Leaders Reignite Ethereum Layer 1
The Ethereum Layer 1 (L1) network is seeing a strong resurgence, powered by high-value DeFi projects like Synthetix and Aave. As scaling solutions continue to evolve, these major players are doubling down on Ethereum’s mainnet, reinforcing its position as the backbone of decentralized finance .
Synthetix founder Kain Warwick has been vocal about the continued relevance of Ethereum L1, highlighting how established DeFi protocols are anchoring serious liquidity and innovation on the base layer. While Layer 2s (L2s) offer cheaper and faster transactions, L1 remains a stronghold for core infrastructure.
Chains Pivoting to Layer 2s
Interestingly, while Ethereum L1 regains momentum, several independent blockchains are choosing to transition into Layer 2 ecosystems. Chains like Ronin, Celo, and Phala have announced plans to become Ethereum L2s, leveraging Ethereum’s security while shedding the burden of maintaining their own consensus layers.
This shift marks a major turning point in the blockchain space: instead of competing with Ethereum, many chains now see more value in building on top of it. Becoming an L2 allows these networks to tap into Ethereum’s massive liquidity and developer community.
Ethereum’s Role as the Base Settlement Layer
Ethereum is increasingly being recognized as the “settlement layer” for all of crypto. As L2s become more diverse and competitive, L1’s role as the secure foundation grows stronger.
DeFi leaders choosing to stay and scale on Ethereum L1 signals confidence in the network’s long-term vision. Meanwhile, Ethereum’s modular architecture enables L2s to flourish without fragmenting the ecosystem.
With L1 anchored by DeFi heavyweights and L2s expanding its reach, Ethereum continues to prove its dominance in the Web3 world.
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