Full competition and opportunities in the diversified landscape of L2

Author: Eric SJ, independent researcher Source: X, @sjbtc9

In this article, Vitalik briefly talked about the current L2 landscape. I found that although Taiko's reputation in the community is not very good, he has been mentioned by him several times

Based on the phenomenon described in this article, it makes me think that the final landscape of L2 may not be dominated by several major L2s as previously envisioned, but towards overall equilibrium

Therefore, with the continuous introduction of new L2s, it will certainly help the diversification of the ecological market, but this stage may not be a very suitable track for secondary market investors

Why? In fact, there is only one sentence: "Don't go against the policy"

Give two examples

By continuously expanding the execution layer, the Ethereum main chain can better play the role of the consensus (security) layer.

In the future, a multi-Rollup ecological spectrum with the Ethereum main network consensus as the independent core will be formed, including the current applications on the original chain. It has also begun to gradually develop towards the application of Rollup (ENS has recently proposed to expand to L2).

Currently, there are nearly 200 L2 lanes that have not been launched and those that have been launched, but the liquidity of the market is temporarily fixed: if the traffic flow is fixed, the lanes are constantly expanding, and the space for traffic flow to choose becomes very much.

Therefore, based on the above logic, the upstream of Rollup construction may become the second half of the L2 competition in this cycle.

With the improvement of upstream solutions, the launch of various personalized rollups in the future are actually in line with the diversified supplement of the L2 ecological spectrum described by Vitalik

Therefore, for some emerging Rollups, it is no longer possible to consider whether it is worth participating based on the differentiated needs that the infrastructure can solve. It is also necessary to consider whether the Rollup has the competitive ability to break through under homogeneous competition

For example, for a specific application Rollup, the valuation logic should start from the application business end, while for the basic Rollup that is only the execution layer logic, it is really necessary to think more about the competition for market share

Attached figure: The distribution of the top ten TVLs of ETH L2 has actually initially demonstrated this balanced diversification phenomenon