Ethereum's L2 strategy enables the development of numerous layer-2 networks, each with distinct transaction processing speeds. Anurag Arjun, co-founder of Avail, emphasizes that this rollup-centric design allows for diverse and experimental execution environments, contrasting it with the singular architectures of traditional layer-1s. While critics argue that L2 solutions may fragment liquidity and undermine the core Ethereum network, Arjun defends the potential for a dynamic ecosystem within Ethereum's architecture. He notes that true interoperability across L2s remains a challenge, complicating asset transfers between different blockchains. Additionally, recent data indicates a drop in fees on the Ethereum layer-1 network, attributed to reduced user activity and engagement with smart contracts, which include DeFi and NFT transactions. This decline has raised concerns regarding Ethereum's market appeal and led to reassessments of investment strategies by institutional players.

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