Ethereum (ETH) is entering a modern phase where long-held assumptions about scaling are being openly questioned. As Ethereum spot ETFs post their first net inflows after several days of outflows and on-chain data shows renewed activity on the mainnet, Ethereum co-founder Vitalik Buterin is calling on the ecosystem to rethink the role of the Layer 2 network.
Vitalik’s message is direct: Ethereum’s base layer is scaling rapid enough that L2s are no longer necessary as bandwidth providers, and their future value lies elsewhere.
ETH's price trends to the downside on the daily chart. Source: ETHUSD on Tradingview
Ethereum mainnet scaling changes the L2 narrative
In recent statements Buterin Ethereum’s original bundle-focused roadmap no longer reflects current conditions, he said. Increasing gas limits and protocol improvements have increased Layer 1 capacity while lowering fees, making direct exploit of the mainnet more attractive.
The data shows that monthly energetic addresses on Ethereum L1 are growing rapidly, even as total L2 usage has declined. This change challenges the notion that L2s act as “Ethereum shards” that inherit full security and censorship resistance from the core layer.
Many L2s have struggled to achieve advanced levels of decentralization, often retaining centralized control for operational or regulatory reasons. According to Buterin, a high-bandwidth chain connected by a multisig bridge does not scale Ethereum itself because trust assumptions are different.
Since Ethereum scales directly, L2s no longer need to provide the underlying block space. This change, Buterin argues, should free programmers from having to impose L2 in a single definition.
A spectrum of L2 projects and native rollups
Instead of abandoning L2, Buterin transforms it into a ghost. Some may be tightly secured by Etherothers may be partially connected, and some may actually be independent systems that interact with Ethereum when needed. Transparency around trust and security guarantees is central to this approach.
On the protocol side, Buterin highlighted progress toward native rollups. The proposed bulk precompilation would enable Ethereum to verify zero-knowledge EVM proofs at the protocol level.
Since this would be part of Ethereum itself, updates and bug fixes would be handled as part of normal network updates, reducing dependency on external governance structures and simplifying interoperability.
ETF inflows and market context
Strategic pivot occurs as institutional signals improve. Spot Ethereum ETFs saw net inflows of approximately $14 million led by BlackRock’s ETHA fund, marking a turnaround from recent outflows.
While near-term price action remains volatile, the return of ETF inflows suggests continued interest in Ethereum as its underlying layer strengthens.
For L2 developers, the message is clear. Competing solely on lower fees is no longer enough. Future relevance will depend on specialization, whether through privacy-centric execution, application-specific chains, ultra-low latency systems, or non-financial exploit cases such as identity and artificial intelligence.
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