ZKakuka (fukafaka)

The fundamental idea behind Layer 2 solutions (L2) on the Ethereum Virtual Machine (EVM) was to provide a low-fee environment within the vast liquidity base of Ethereum. However, today Solana itself has comparable liquidity sufficient for most DeFi applications. It also has its own community with prominent figures and brand recognition. This means that the narrative of the previous cycle, which held that EVM alone was sufficient for Ethereum's growth, is now obsolete—user experience isn't improving, and governance tokens are left somewhere near advanced meme coins. Users generally do not complain about unverifiable proofs or insufficient decentralization of the network – instead, they complain about high fees, slow transactions, and frequent hacks. Teams that understand this and prioritize these issues will win in the long run.

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Why L2 over L1? The primary value of Ethereum L2 (confirmed by hundreds of conversations with funds, LPs, family offices) is native ETH. If I'm an LP, I feel 100 times more confident placing liquidity through stETH than buying a native L1 token that could crash by 90% during a bear market. As you may have noticed, a dominant narrative prevails in the world: 🚀 During bull markets, everyone loves L1 tokens—the "Ethereum killers.” 🐻 During bear markets, everyone clings to ETH with all their might. Next-generation L2s will be more advanced. They will bring the user experience of L1s like SOL and APT to the high-liquidity ecosystem of Ethereum. LPs and users will feel more confident using native stETH and ETH on L2s like Movement (shill alert – editor's note).

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What does this lead to? The L2s that focus on user experience will survive to the next cycle. ARB is doing this through MultiVM, and OP with the help of Coinbase, facilitating user and fund transfers into and out of the network. More importantly, new-generation virtual machines have emerged—Move-EVM, SVM, Parallel EVM. The latest iteration of Ethereum's execution scaling is here. These VMs will be user-experience powerhouses, featuring high throughput, minimal fees, built-in formal verification, fully decentralized, and optimized sequencers. Recent launches have shown that the market only values user-focused products (see Ethena). Next-generation L2s concentrate exclusively on UX—not arguing over complex concepts, but focusing on creating killer apps and communities around them. Growth in infrastructure should primarily serve the user, otherwise, the long-term value of such infrastructure becomes zero.

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Hola hola crypto buddies

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