As the Ethereum layer-2 (L2) ecosystem continues to expand and encompasses most of the daily economic activity on the Ethereum blockchain, the problem of centralization persists.
Elena Sinelnikova, co-founder of the Metis L2, recently told Cointelegraph that layer-2 scaling solutions should adopt decentralized sequencers to maximize anti-fragility and censorship resistance.
According to Sinelnikova, most layer-2 networks feature only one sequencer, and most users are unaware they transact on centrally managed platforms that can be controlled or shut down at any time. The Metis co-founder told Cointelegraph:
“About 97% of all Ethereum transactions are on layer-2s — so basically almost all of them. Layer-2 solutions were never meant to be decentralized solutions. They are centralized solutions with one sequencer.”
Sinelnikova also touched on proposals from the Ethereum Foundation to promote decentralization by enhancing L2 interoperability as an alternative to the current model of competing and siloed L2 solutions. However, the Metis co-founder argued that adopting decentralized sequencers is the simpler option.
A snapshot of Ethereum L2 solutions. Source: L2 Beat
Related: Vitalik Buterin urges Web3 wallets to improve security, privacy
Ethereum layer-2 networks continue to grow
The Metis co-founder expects the number of layer-2 scaling solutions to continue growing in 2025, and recent developments in the Ethereum layer-2 ecosystem seem to suggest this is the case.
In Oct. 2024, Ethereum co-founder Vitalik Buterin outlined plans to increase throughput to 100,000 transactions per second (TPS). The ambitious goal is part of Ethereum’s roadmap, known as “The Surge.”
The Surge seeks to foster interoperability between Ethereum’s layer-2 solutions while reaching 100,000 TPS between the Ethereum base layer and its layer-2 networks.
Layer-2 networks posted approximately three times as much daily transaction data in November 2024 than in March 2024. The increased activity caused fees to spike on the Ethereum base layer — helping to reverse months of low Ethereum revenues.
Current total value locked across Ethereum L2s. Source: L2 Beat
According to data from L2Beat, Ethereum L2s recorded $51.5 billion in total value locked in November and experienced 205% year-over-year growth.
That figure swelled to over $60 billion in early December 2024, with Arbitrum One and Base leading the charge with roughly $21.5 billion and $14.2 billion in total value locked, respectively.
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