Ethereum’s future is looking brighter than ever, thanks to the visionary insights of co-founder Joe Lubin. At the recent Digital Asset Summit, Lubin shared his thoughts on the evolution of Ethereum’s ecosystem, and it’s all about scaling up with layer-2 (L2) networks. These L2 solutions are set to become the backbone of Ethereum, pushing the boundaries of what’s possible in the world of smart contracts.
In an exclusive chat with Cointelegraph’s Turner Wright, Lubin emphasized the need for next-gen databases driven by high-throughput blockchain tech. He believes that Ethereum’s vast and mature ecosystem is the perfect playground for these innovative L2 networks to thrive. One such promising L2 network is Linea, which boasts some impressive features.
But that’s not all! Another exciting L2 contender on the horizon is MegaETH. Lubin is confident that these new layers will solidify Ethereum’s dominance, making it tough for emerging layer-1 chains to compete against Ethereum’s robust architecture and security.
Yet, not everyone is on board with this L2 revolution. Some investors have voiced concerns, viewing these networks as parasitic, siphoning off revenues from Ethereum’s base layer while offering minimal economic value in return. The numbers tell a story too: Ethereum’s average gas fees plummeted by 95% after the Dencun upgrade in March 2024, drastically reducing transaction costs for L2 networks.
This fee reduction led to a staggering 99% drop in revenue for Ethereum’s base layer by September 2024. As a result, Ether (ETH) prices have been on a downward spiral, hitting a low of around $1,759 in March 2025. Analysts are predicting even more turbulence ahead.
Data from Farside Investors paints a grim picture, with continuous outflows from Ether ETFs for 11 days straight amid a broader crypto market downturn. The most significant outflow occurred on March 13, with investors pulling a whopping $73.6 million from ETH ETFs, opting for safer assets like cash and stablecoins.
The launch of MegaETH could be a game-changer for Ethereum, but it comes with its own set of challenges and questions. As the crypto world watches closely, one thing is clear: Ethereum’s journey is far from over, and the next chapter promises to be as thrilling as ever.
