Ethereum Faces Decline Amid Rising L2 Networks, Says Cyber Capital Founder

According to Odaily, Cyber Capital founder Justin Bons recently expressed concerns on the X platform about Ethereum's declining status, stating that Layer 2 (L2) networks are thriving at Ethereum's expense. Bons highlighted that since the implementation of EIP-4844 (Proto-Danksharding), Ethereum's fee revenue has significantly decreased and is unable to keep up with inflation. In contrast, L2 networks have seen record usage and fee revenue, while lobbying to maintain Ethereum's low capacity. Bons described this situation as a 'parasitic relationship,' asserting that L2 networks are effectively stealing Ethereum's users and fees by masquerading as being 'the same as Ethereum.' He predicted that L2 networks will eventually migrate or become independent Layer 1 (L1) networks, leading to Ethereum's gradual decline. Bons criticized Ethereum's leadership for 'selling out' to L2 networks, exposing systemic governance issues. He warned that if Ethereum were to significantly expand its L1 capacity in the future, it could cause the collapse of all L2 network tokens and equity prices, giving L2 networks a motive to prevent Ethereum's expansion.