In brief
- Vitalik Buterin said Ethereum needs “a new path” that relies less on layer-2 networks.
- He warned some L2s have compromised on decentralization and should not be treated as “branded” extensions of Ethereum.
- Buterin urged L2 developers to pitch a value proposition beyond simply “scaling Ethereum.”
Ethereum co-founder Vitalik Buterin said Tuesday that the network must find “a new path” involving less dependence on layer-2 scaling networks, also known as L2s.
“The original vision of L2s and their role in Ethereum no longer makes sense,” Buterin wrote in an X post.
For years, Ethereum developers have pursued a long-term goal of “scaling” the network, which would effectively mean creating enough available block space to allow all manner of applications and transactions to flow on the network, without sacrificing its security, efficiency, and decentralization.
There have recently been some discussions on the ongoing role of L2s in the Ethereum ecosystem, especially in the face of two facts:
- L2s’ progress to stage 2 (and, secondarily, on interop) has been far slower and more difficult than originally expected
- L1 itself is scaling,…
— vitalik.eth (@VitalikButerin) February 3, 2026
Many in the Ethereum community, including Buterin, previously said this goal would best be achieved via layer-2 networks, such as Base, Polygon, Arbitrum, and Optimism, which are built on top of the Ethereum mainnet by third-parties.
But Buterin has now changed his tune, arguing that the Ethereum mainnet is currently scaling at sufficient speed—and further, that some L2s can’t be trusted to live up to Ethereum’s standards, and thus should not be considered “branded” shards of the network, particularly when it comes to sufficient decentralization.
“L2s are not able or willing to satisfy the properties that a true ‘branded shard’ would require,” the Ethereum co-founder said. “I’ve even seen at least one explicitly saying that they may never want to go beyond stage 1, not just for technical reasons around ZK-EVM safety, but also because their customers’ regulatory needs require them to have ultimate control.”
As Buterin first laid out in 2022, “stage 1” L2s are those with “limited training wheels” when it comes to security and decentralization, while “stage 2” networks are fully decentralized.
Buterin proposed Tuesday that consumers and developers should start to think of L2s less as an extension of Ethereum in all cases, and more as a spectrum: in which some networks are considered up to Ethereum’s standards, and some aren’t, because they offer users another perk or benefit at the expense of security or decentralization.
The announcement could prove to be a watershed moment for the world of L2 development and marketing. For years, most networks building on Ethereum have honed their pitch around “scaling Ethereum”. Now, Buterin says, leaning on that framing will no longer suffice.
“What would I do today if I were an L2?” the software developer posited. “Identify a value-add other than ‘scaling.’”
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
ETH drops 0.56% in 15 minutes: Institutions’ ETF in-and-out flows and tightened on-chain liquidity dominate the market
From 17:45 to 18:00 (UTC) on 2026-04-19, the ETH price recorded a return of -0.56% within 15 minutes, closing in the 2294.03 - 2311.0 USDT range, with an amplitude of 0.73%. Heightened market volatility triggered increased short-term trading activity and boosted attention, while overall liquidity performance tightened.
The main driving force behind this unusual move is institutions’ short-term in-and-out flows of ETF funds and a lull in on-chain stablecoin activity. In early April, after the ETH spot ETF recorded a net inflow of $120.24 million over a short period, it quickly reversed to a net outflow of $64.61 million, indicating that institutional capital became more short-term and there was no signal of sustained accumulation. Meanwhile, on-chain USDT and USDC activity fell in tandem to an annual low; ETH’s short-term buying power was clearly insufficient, putting pressure on liquidity.
In addition, high-win-rate whales have been frequently shorting ETH and BTC since April 14, with related position sizes exceeding $25 million, further intensifying downward pressure in the short term. On the macro front, the Federal Reserve maintains high interest rates, the U.S. dollar remains strong, risk appetite has shifted to cautious, and some funds have flowed into traditional assets such as U.S. stocks. On-chain data shows that exchange reserves for ETH have fallen to the lowest level in nearly a decade, suggesting that long-term holders are actively shifting away from self-custody, further reducing market liquidity supply and amplifying price anomalies. Network conditions are stable; gas fees are operating at low levels, and on-chain transactions have not shown extreme spikes.
The risk of near-term fluctuations remains high. ETF fund flows, large on-chain transfers, stablecoin activity, and changes in whale positions will be key indicators to watch. If institutions step up selling or stablecoin outflows expand further, ETH price volatility may intensify. Please continue to monitor macro developments and on-chain liquidity changes, stay alert to the risk of sharp short-term volatility, and get more real-time updates.
GateNews3h ago
ETH breaks below 2300 USDT
Gate News bot message, Gate market shows that ETH breaks below 2300 USDT, current price 2299.54 USDT.
CryptoRadar4h ago
A judge ruled that the JENNER meme coin issued by socialite Jenners from the Kardashian family is not a security, dismissing the lawsuit.
The U.S. District Court for the Central District of California ruled that the $JENNER meme coin issued by socialite Jenna, of the Kardashian family, does not meet the definition of a security, dismissing investors’ lawsuit. The judge said the plaintiffs failed to prove the features of a common enterprise and can bring other claims in state court.
ChainNewsAbmedia6h ago
ETH breaks through 2350 USDT
Gate News bot message, Gate quotes show that ETH has broken through 2350 USDT, with the current price at 2350 USDT.
CryptoRadar8h ago
KelpDAO Exploiter Borrows $195M ETH from Aave, TVL Drops $6.28B as Whales Withdraw
Gate News message, the KelpDAO exploiter borrowed over 82,600 ETH ($195M) from Aave using RSETH as collateral, resulting in bad debt appearing on Aave. Following this incident, numerous whales withdrew funds from Aave, causing its TVL to decline from $26.396B to $20.114B, a decrease of $6.28B.
GateNews10h ago
Vitalik and Ethereum Foundation Chair Aya Miyaguchi Confirmed to Speak at Hong Kong Ethereum Community Hub Launch
Vitalik Buterin and Aya Miyaguchi will speak at the Hong Kong Ethereum Community Hub opening on April 21. The hub, Asia's first Ethereum-backed space, aims to connect Eastern and Western ecosystems with discussions on key topics like zero-knowledge proofs and AI.
GateNews12h ago