As the Ethereum layer-2 (L2) ecosystem continues to expand and encompass most of the day-to-day economic activities on the Ethereum blockchain, centralization issues persist.
Elena Sinelnikova, co-founder of Metis L2, recently told Cointelegraph that layer 2 scaling solutions should adopt decentralized sequencers to maximize vulnerability prevention and censorship resistance.
According to Sinelnikova, most layer 2 networks have only one sequencer, and most users don’t realize that they are transacting on a centrally managed platform that can be controlled or terminated at any time. Metis co-founder told Cointelegraph:
“About 97% of all Ethereum transactions take place at Layer 2. So basically, almost all of them. A Layer 2 solution is never a decentralized solution. It’s a centralized solution with one sequencer.”
Sinelnikova also mentioned the Ethereum Foundation’s proposal to promote decentralization by improving L2 interoperability as an alternative to the current model of competing and siled L2 solutions. However, the Metis co-founder argued that adopting a distributed sequencer was a simpler option.
Snapshot of the Ethereum L2 solution. source: L2 bit
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The Ethereum layer-2 network continues to grow.
The Metis co-founder expects the number of layer 2 scaling solutions to continue to grow in 2025, and recent developments in the Ethereum layer 2 ecosystem seem to suggest that this is the case.
In October 2024, Ethereum co-founder Vitalik Buterin outlined plans to increase throughput to 100,000 transactions per second (TPS). The ambitious goal is part of the Ethereum roadmap known as “The Surge.”
The Surge seeks to promote interoperability between Layer 2 solutions on Ethereum, reaching 100,000 TPS between the Ethereum base layer and Layer 2 networks.
Layer 2 networks published approximately three times as much daily transaction data in November 2024 as in March 2024. The increase in activity has led to a surge in fees on Ethereum’s base layer, helping to reverse months of low Ethereum profits.
Current total value locked across Ethereum L2. source: L2 bit
Ethereum L2 recorded a total flat valuation of $51.5 billion in November and experienced 205% year-over-year growth, according to data from L2Beat.
This figure had swelled to over $60 billion by early December 2024, with Arbitrum One and Base leading the way, securing a total value of approximately $21.5 billion and $14.2 billion, respectively.
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