Ethereum Layer 2 Loses Momentum: Active Users Drop by Half Amid Market Uncertainty

Ethereum Layer 2 solutions are going through a critical moment. According to data from NS3.AI, these networks have experienced a sharp decline in their active user base, dropping from 58.4 million to approximately 30 million. This decline sharply contrasts with the performance of the base layer, which doubled its active addresses during the same period, highlighting a shift in user preference.

Adoption Crisis in Layer 2 Networks

The situation is further complicated by the current technical context. Despite Ethereum’s mainnet significantly reducing transaction fees and plans to expand gas limits until 2026, Layer 2 networks continue to lose appeal. This phenomenon suggests that the problem is not solely related to costs but involves a deeper issue related to the value proposition model.

Vitalik Buterin Warns of the Need for Reinvention

Ethereum co-founder Vitalik Buterin has pinpointed the core issue. He argues that solutions on this layer need to be reconsidered beyond the initial scalability argument that defined them. He suggests they should focus on providing differentiated functionalities: greater privacy, specialized applications, or technological innovations that justify their independent existence.

Negative Market Sentiment Pressures Prices

The uncertainty surrounding the future of these networks is directly reflected in the markets. The main tokens associated with Layer 2 solutions have experienced notable price drops, demonstrating that investors share market concerns about whether these platforms can offer a genuine value proposition beyond cost reduction.