For years, Ethereum [ETH] prioritized security on mainnet while Layer 2 handled speed and scalability, and the ecosystem viewed L2s as “branded shards” and direct extensions of the network.
However, by 2026, this vision no longer reflected how the ecosystem evolved, as Vitalik Buterin acknowledged that Layer 2s no longer serve purely as scaling tools.
Rising gas limits and ongoing upgrades improved mainnet performance faster than expected, while many L2 projects slowed or abandoned decentralization due to regulatory and business pressures.
Together, these shifts created uncertainty and redefined the relationship between Layer 1 and Layer 2.
That said, three major changes explain this shift in Ethereum’s Layer 2 landscape.
The identity crisis of Layer 2
In a recent episode of Unchained, Austin Griffith and Karl Floersch joined the discussion to examine the future of Layer 2s, as Buterin questioned whether Ethereum’s original scaling vision still makes sense today.
First, Ethereum now scales more effectively on its own through higher gas limits and continuous technical upgrades.
These improvements increase network capacity and reduce reliance on Layer 2s for basic affordability. As a result, L2s no longer play an essential role in keeping transaction costs low.
Second, many Layer 2 networks have slowed their progress toward decentralization in recent years.
Regulatory and business pressures have pushed several projects away from full decentralization. This shift weakens the original idea that L2s closely reflect Ethereum’s trust and governance.
Third, Layer 2s now operate with different levels of trust across the ecosystem. Instead of remaining uniformly pure Ethereum, they exist on a broad spectrum.
Some networks stay tightly secured by Ethereum, while others function more independently and carry higher risks.
Together, these changes show that Layer 2s no longer act as simple extensions of Ethereum. They now form a diverse ecosystem with distinct roles and priorities, reshaping how the community understands scaling on Ethereum.
As Ethereum scales more efficiently and many Layer 2 networks remain only partially decentralized, a key question is emerging...
What are L2s really becoming?
According to Karl Floersch, it depends on whether Ethereum is seen as just a network or a shared culture. Projects like Optimism began as extensions of Ethereum but have grown into independent platforms.
Floersch added,
“Optimism was built to scale Ethereum and you know make progress on the frontier.”
Thus, being faster and cheaper is no longer enough; L2s now need clear use cases and strong value to stay relevant. At the same time, Ethereum’s mainnet is regaining importance.
The ultimate goal
As fees fall and security remains unmatched, developers are increasingly returning to Layer 1.
Lower costs, stronger guarantees, and growing AI-driven activity are making the mainnet more attractive, especially for serious applications where security matters more than speed.
Meanwhile, even as Layer 2 networks see strong growth in usage, the amount of capital they secure continues to decline.
This coincided with Buterin recently highlighting that Ethereum’s original rollup-first strategy no longer reflects current realities.
Data from L2Beat shows that users increasingly rely on rollups for fast and low-cost transactions, while fewer assets remain protected under Ethereum-level security.
This widening gap shows that L2s are shifting toward execution-focused platforms rather than major value hubs, pushing Ethereum to rethink the long-term role of Layer 2s in its ecosystem.
Final Thoughts
- Partial decentralization has become a structural weakness for many rollups, limiting long-term trust and institutional adoption.
- L2 networks are increasingly being judged by product-market fit rather than technical throughput.
