Ethereum's L2 approach equals many high-throughput chains — Avail exec
Ethereum's scaling strategy relies on multiple layer-2 (L2) networks, allowing for a potentially unlimited number of high-throughput chains. Anurag Arjun, co-founder of Avail, highlights that this rollup-centric architecture enables diverse execution environments and block times, contrasting with monolithic architectures of competitors. However, he warns that without true interoperability, switching between L2s remains complex. Critics argue that L2 solutions silo liquidity and negatively impact Ether's price performance. In April 2025, Ethereum's layer-1 transaction fees dropped to five-year lows, averaging around $0.16, indicating decreased demand and investor interest. This decline in fees correlates with reduced interactions with smart contracts, leading institutional investors to cut Ether allocations and adjust price forecasts.
