@polynya: Why most legacy L1 haven't migrated to L2 despite technical advantages

Submit
polynya@polynya

In 2021, I wrote extensively on this topic. On paper, purely technically, it was a no-brainer - greater performance, interoperability, secure access to ethereum liquidity, security & decentralization, significantly lower inflation for economic sustainability, etc. etc. Since then, all major new chains have been L2s - from DAOs (Unichain) to crypto corporations (Coinbase, Kraken) to tradfi (Robinhood), with the sole exception of Hyperliquid. There have been some L1 > L2 like Celo as mentioned. However, over 4 years, most legacy L1s have remained L1s. Potential reasons: - Application demand growth has been a fraction of expectations. Most L1s have barely any activity and have no need for the greater performance or interoperability of L2s - L2 & blob dev have slowed down since '22 potentially due to the above, with performance much lower than expected in '25 - Much of their token value is based on being an anti-ethereum cult - The industry has pivoted to degeneracy, decentralization/security matter less now

farcaster.xyz

Why most legacy L1 haven't migrated to L2 despite technical advantages

submitted bymisha13,2831y
1
Read original article
AI summary of the linked article

Polynya argues that most legacy L1 blockchains have not migrated to L2 despite the technical advantages, and offers several possible reasons. Since 2021, nearly all major new chains have launched as L2s, including Unichain, Coinbase, Kraken and Robinhood's chain, with Hyperliquid as the exception. The proposed reasons include application demand growing far below expectations, leaving most L1s with little activity and no need for L2 performance or interoperability, and L2 and blob development slowing since 2022. Polynya also suggests that much of some L1s' token value depends on opposition to Ethereum, and that the industry's shift toward speculation has reduced the weight given to decentralization and security.

Recommended by 2 curators
@tum4y.ethsileo.eth
1 comment
avatar
sileo.eth· 1 year ago
Interesting thoughts from Polynya, as always. I shared the same reasoning and it seemed logical for L1s to pivot and become L2s. But that seems to give less of an advantage now than 4 years ago.
Top stories that week →