Ethereum Layer 2s take over: mainnet keeps getting quieter
More and more transactions and activity are shifting from Ethereum mainnet to Layer-2 networks like Arbitrum, Optimism and Base. We explain what this means for users and for ETH itself.
The vast majority of daily transactions in the Ethereum ecosystem now happen on Layer-2 networks such as Arbitrum, Optimism, Base and various zk-rollups, rather than on the Ethereum mainchain itself. For users this means lower costs and faster transactions; for the broader ecosystem it raises questions about where value actually accrues.
In short
🔗 Layer-2s now process most Ethereum transactions · 💸 lower fees, faster settlement for users · 📉 mainnet activity (and fee burn) is relatively declining · 🧩 ongoing debate on how value flows back to ETH as an asset.
What exactly is a Layer-2?
A Layer-2 is a separate network that runs on top of Ethereum and periodically batches transactions back to the mainchain (a so-called rollup). Users benefit from Ethereum's security while paying much lower fees, because thousands of transactions are bundled into a single mainnet transaction. Well-known examples include Arbitrum, Optimism, Base, and zk-rollups like zkSync and Starknet.
Why is activity shifting so fast?
Apps such as decentralized exchanges, NFT marketplaces, and gaming protocols increasingly default to a Layer-2, simply because the user experience is better: transactions that cost several euros on mainnet often cost a fraction of a cent on a Layer-2. For new users and for applications with many small transactions (micropayments, gaming), that's a decisive difference.
What does this mean for ETH as an asset?
This is one of the most debated topics in the Ethereum community. Less mainnet activity means less fee burn (and therefore less ‘deflationary pressure’ on ETH via the EIP-1559 mechanism). At the same time, many Layer-2s generate their own fee revenue that doesn't always flow back directly to ETH holders. Ethereum developers are working on mechanisms to tie Layer-2s more closely to the mainchain in terms of security and value flow, but this remains a work in progress.
What does it mean for you as a user?
Practically speaking, this is good news: more choice, lower costs, faster transactions. When using a Layer-2, pay attention to exactly which network you're on (choosing the right network for transfers is a common source of errors), and check that a protocol has sufficient liquidity and a track record before sending it large amounts.
Conclusion
The shift to Layer-2s is a sign that Ethereum is scaling as intended, but the debate over how that growth translates into value for ETH holders is still very much ongoing.