April 25, 2025 — Ethereum’s scaling strategy is making waves in the crypto space, but not everyone’s on board. According to Cointelegraph, Ethereum’s use of multiple layer-2 (L2) networks—each with unique transaction speeds and setups—creates a vast ecosystem of high-throughput sidechains. Anurag Arjun, co-founder of Avail, recently shared that this rollup-centric approach lets teams experiment with diverse execution environments, offering flexibility that monolithic layer-1 competitors can’t match. However, Arjun warned that without seamless interoperability, moving between L2s can feel as clunky as bridging assets across entirely different blockchains.

Ethereum’s Layer-2 Scaling Strategy Sparks Debate Amid Fee Reductions

Critics argue this L2 focus fragments liquidity and weakens Ethereum’s base layer. They point to Ether (ETH) price struggles over the past year, blaming L2s for isolating funds. Adding fuel to the fire, Ethereum’s layer-1 fees hit a five-year low of $0.16 in April 2025, per Santiment’s Brian Quinlivan. He noted this reflects declining base layer demand, with fewer transactions and less activity in DeFi, NFTs, and other sectors. This trend has spooked some institutional investors, who are now cutting ETH allocations and rethinking price forecasts for the second-largest crypto by market cap.

So, what’s next for Ethereum? Can its L2 strategy balance innovation with usability, or will it continue to divide the ecosystem? Share your thoughts in the comments below—we’d love to hear your take!