According to the novel Binance Research report, Ethereum pressing towards the scalability of blockchain layer 2 (L2) can be a double double -edged ether sword, potentially weakening the value of calculating the second largest cryptocurrency in the world.

The report suggests that the L2 Ethereum blockchain networks – built to improve the main scalability and lower transaction costs – can be cannibalistic for the Ethereum base layer, negatively affecting the ether price (ETH).

The domination of Ethereum in terms of a decentralized stock exchange (DEX) of the generated fees is “threatened” by Solan and BNB Astute Chain, wrote Binance Research.

The main factors include sluggish and pricey transactions, crushed “mindshare for programmers and liquidity, as well as a reduced value calculated to L1 due to L2 growth,” said the report.

The Ethereum road map already includes future improvements to create cheaper transactions, additional security and more future incentives to the main.

Despite this, the calculation of Ether’s value may still suffer in the near future, because the next two main updates do not immediately solve these problems, but they are aimed at creating greater scalability of data availability and enabling a larger number of L2 network.

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The fears were re -arranged around Ethereum Mainnet’s economic incentives, because the price of Ether has dropped to USD 1,410 on April 7, which means the lowest level from March 2023.

The price of eterra dropped by more than 61% during a four -month decline, which began on December 16, 2024, when ETH briefly reached the peak above USD 4,100, show the data of Prointelegraph Pro markets.

Pectra ethereum, Fusak’s update does not solve the Ether value of the Ether value calculation

After initial delays, the very expected PECTRA Ethereum update is to be launched on Mainnet on May 7.

Pctra updating is aimed at improving the ether of stacking and scalability of the L2 network, increasing blob capacity to allow more data operation to maint and improve the overall network capacity.

Fusak’s update, expected at the end of 2025, will focus on the scaling of Ethereum Mainnet as a layer of data availability by introducing EIP-7594. Fusaka can also introduce an update to Ethereum Virtual Machine (EVM), which results in a “more structured approach” to creating an knowledgeable contrary, reducing general costs and improving the impressions of programmers.

Ethereum’s commitment to L2 scaling can be a “double-edged sword” due to the concerns about the “competitiveness of the main competitiveness as a layer of data availability” and “sustainable development of the value of calculation of Ethereum assets,” said the report.

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“One promising path for a stronger calculation of ETH values ​​is the development of based development,” which “contribute much more in fees” to Ethereum compared to L2, such as base, arbitration and optimism, according to the Binance research spokesman.

“The next path is the evolving role of Ethereum as a layer of data availability,” said spokesman Cointelegraph, adding:

“The value accrued through this model depends on external factors: L2S must continue to choose Ethereum for data availability, and the demand for blockSpace must grow in a competitive landscape, in which alternatives such as Solana and BNB Smart Chain gain adhesion.”

“Adaptation of motivational structures between Ethereum and L2S, whether by sharing fees, interception of MEV, or integration at the protocol level, will be necessary to ensure that the balanced value returned to ETH as assets, if Ethereum continues to engage in scaling with L2S,”

https://www.youtube.com/watch?v=kqzhvt77xkw

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