đ„Andre Cronje, the father of DeFi: Layer2 has no meaning as an application chain, which is illogical for developers, and he listed many shortcomings of L2ââ
-- Almost no stablecoin, oracle, institutional custody and other infrastructure at the time of deployment
-- No support from foundations/laboratories
-- Centralized architecture is vulnerable to attacks
-- Dispersed liquidity, requiring mandatory use of cross-chain bridges
-- Developed alone, without a developer community
-- Infrastructure and compliance costs are grossly underestimated
-- Spending too much time dealing with the above issues instead of building the product
According to L2Beat data, there are already 73 operational L2s, 20 L3s, and 81 upcoming projects.
The main problem with L2 now is not how to start, but that using tokens to attract users is not a long-term solution after all. How to make TVL grow steadily, how to maintain its attractiveness to users, and how to make the protocol make money through a large number of transactions are 100 times more difficult than issuing coins.
And a big objective reason is that L2 users and liquidity are actually included in the Ethereum ecosystem, and they are interconnected.
Therefore, whether it is developers or users, they have never had very high loyalty. Stimulated by the expectation of token issuance and community incentives, it is easy for them to shift from the original ecology to a new ecology.
Liquidity is caught in internal friction, one after another, and the update and replacement are very fast. This is the current situation of L2. Especially in the context of the Meme season bull market, L2 will be more difficult.
There are only two projects left, Base and Linea, that say they have no plans to issue coins, and it is estimated that they will not be able to do anything this year.
