In the crypto world, a common concern is the imbalance between the number of chains and available applications, resembling criticisms from the early internet era about overinvestment in infrastructure. Ethereum is betting on similar growth by enhancing data availability (DA) through upgrades, believing that increased supply will stimulate demand. Ethereum's strategy involves sacrificing short-term execution fees for future DA profits, aiming for substantial revenues if usage scales to millions of transactions per second. Critics highlight the uncertainty of the needed DA and competition from other chains, while the market adjusts, reflecting a decline in funding for Layer 1 blockchains in favor of less costly Layer 2 solutions. The transition of some projects from L1 to L2 signifies this trend toward efficiency, mirroring changes in the tech landscape, as the industry continues to evolve and adapt to emerging needs and challenges.

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