Too early to say Ethereum L2s are ‘cannibalistic’ of revenue: Sygnum Bank
Ethereum daily fees hover between $1 million and $5 million — far less than the $30 million consistently reached throughout 2021 and 2022.
Fears that Ethereum layer-2 scaling solutions are eating into the mainnet’s revenue and could impact prices may be premature, according to a crypto bank analyst.
“It is much too early to tell whether Ethereum[‘s] strategy of scaling through layer 2s is cannibalistic or will lead to net growth,” Katalin Tischhauser, head of research at Sygnum Bank told Cointelegraph in a recent interview.
Tischhauser’s use of “cannibalistic” refers to layer 2s taking “business” away from the Ethereum mainnet — which has contributed to a substantial fall in Ethereum fees over the last few years.
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Author: Brayden Lindrea
