According to Anurag Arjun, co-founder of Avail, a unified chain abstraction solution, Ethereum’s strategy of scaling via multiple layer-2 networks, each characterized by its own transaction processing speed and parameters, could provide the network with an unlimited number of distinct, high-throughput chains.
In a conversation with Cointelegraph, Arjun expressed that although Ethereum and speed-focused competitors with monolithic structures are essentially different products, Ethereum’s choice to scale via numerous L2 solutions offers a frequently underappreciated advantage:
“The unnoticed charm of this rollup-centric architectural roadmap is that it enables numerous teams to experiment with diverse execution environments and block times.”
This leads to the emergence of a varied set of high-throughput sidechains, instead of a single architecture on any monolithic layer-1s, the executive added. Yet, he cautioned that without genuine interoperability, transitioning between L2s would remain as intricate as transferring assets between various blockchain ecosystems.
Arjun’s stance clashes with the numerous critics of Ethereum’s L2-centric strategy, who argue that the network’s scaling solutions compartmentalize liquidity and are ultimately detrimental to the base layer. Critics contend that L2s are a major factor in Ether’s ETHUSD subpar price performance over the past year.
Transaction fees on the Ethereum layer-1 network dropped to a five-year low in April 2025, averaging around $0.16 per transaction. Brian Quinlivan, the marketing director at the Santiment onchain analytics firm, suggests that the fee reduction indicates diminished demand for the base layer and falling investor interest in Ethereum.
“The significant reduction in fees aligns with fewer individuals sending ETH and interacting with smart contracts,” Quinlivan wrote in a blog post dated April 16. He further added that these smart contract interactions include transactions in decentralized finance, digital collectibles such as non-fungible tokens (NFTs), and other sectors of the digital asset market.
The decline in Ether’s base layer transaction fees and dwindling retail interest also prompted numerous institutional investors to cut back their Ether allocations and revise their price forecasts for the second-largest digital asset by market cap.
