The founder of Avail praises Ethereum's Layer 2 strategy.

According to Anurag Arjun, co-founder of Avail – a unified solution for blockchain abstraction layers – Ethereum's scaling strategy through multiple layer-2 networks (L2), each with its own transaction processing speed and specifications, is giving Ethereum the potential to own an almost unlimited number of high-performance chains.

In an interview with Cointelegraph, Arjun admitted that Ethereum and its competitors with a monolithic architecture (monolithic) are two completely different models. However, Ethereum's choice to scale through a rich L2 ecosystem possesses an advantage that is often undervalued:

"The often overlooked beauty in this rollup-focused roadmap is that it allows multiple development teams to experiment with different execution environments and varying block times."

According to Arjun, this facilitates the emergence of a rich ecosystem of high-performance sidechains, rather than being limited to a single architecture like traditional layer-1 blockchains. However, he also warns that without true interoperability between L2s, moving between these networks will still be as complicated as transferring assets between entirely different blockchains.

Overview of the Ethereum layer 2 ecosystem | Source: L2BeatArjun's perspective contradicts many criticisms of Ethereum's L2-based scaling model, arguing that this strategy is fragmenting liquidity and weakening the underlying layer. Some believe that L2 networks are the main cause of ETH's poor price performance over the past year.

Hayden Adams – the founder of Uniswap – has also spoken about Ethereum's expansion direction, arguing that if this network continues to rely on Layer 1 to operate DeFi applications, then Solana, with its unified scaling model, cohesive development team, and clear roadmap, could very well become the superior choice.

Adams emphasized that Ethereum has pursued a rollup-centric expansion strategy for the past 5 years, but now the community is gradually returning to demand that everything important be brought back to Layer 1, while Layer 2 solutions – which have been the focus of the expansion vision – are not receiving the support they deserve. He believes that this contradiction stems from vague arguments such as "alignment", hindering the comprehensive development progress of Ethereum.

Ethereum transaction fees hit a 5-year low

Transaction fees on the Ethereum mainnet fell to a 5-year low in April 2025, with an average fee of only about 0.16 USD per transaction.

According to Brian Quinlivan, the marketing director of the on-chain analytics company Santiment, the sharp decline in transaction fees indicates a decrease in demand for the underlying layer of Ethereum, while also reflecting a growing disinterest from investors.

"The sharp decline in transaction fees coincides with the trend of fewer people sending ETH and interacting with smart contracts," Quinlivan wrote in a post on April 16.

He also mentioned that these smart contract interactions include transactions in the decentralized finance sector (DeFi), collectible digital assets such as NFTs, and other blockchain applications.

The decline in layer 2 transaction fees and the level of interest from individual investors have also led many financial institutions to cut back on their investment allocations to ETH and adjust their price forecasts for the second largest cryptocurrency in the market.

When gas fees on Ethereum rise, users complain about the slow and costly network. But when fees decrease and transactions become faster, investors and stakers worry about declining revenue. Ethereum finds itself in a dilemma: cheap fees alienate investors, while expensive fees turn users away.

However, in the blockchain world, users are the customers. And if customers have left for platforms like Sui or Solana, then Ethereum could lose everything.

View ETH price here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.

Thạch Sanh