Vitalik Buterin has said he does not intend to invest in layer 2 networks amid debate on the benefits they bring to the main blockchain.
co-founder, Vitalik Buterin, has come out to state that he does not plan on investing in layer 2 networks. This comes days after he“I also do not intend to invest into L2s or other token projects in the foreseeable future. My goal with giving projects money is to support things that I think are valuable, especially in cases where other parts of the ecosystem might undervalue them.”
His statement comes amid a raging debate on the value that layer 2s bring to the underlying layer 1 blockchain.Layer 2 networks have recorded much growth over the past year, with the Total Value Locked surging by nearly 200% perVanEck noted that at the beginning of the year, the Ethereum blockchain recorded $6M in revenues. In August, this sum had dropped to $1.2M, as transactions were pushed from the Ethereum mainnet.
“Basically, network extensions are L2s but L2s are not network extensions. It’s a rectangle and a square, one definition fits the other.” As the debate rages on, the layer 2 ecosystem appears to be witnessing a slowdown amid broader bearish market sentiments. In the last week, the TVL for the top five layer 2s by TVL has dropped.Mary is a seasoned crypto news writer passionate about blockchain technology, digital assets, and Web3. She has two years of experience delivering insightful analysis and news on key developments in the industry.
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