Saw this image shared by someone in the community and couldn’t help but feel amazed at how fast Ethereum L2 has grown over the past year. If the issues of L2 liquidity interoperability and security fees can be resolved, Ethereum would have almost no rivals in the entire crypto space. Only then can L1/L2 work together as a cohesive force to achieve overall synergy; otherwise, it’s just everyone doing their own thing. Right now, L2 is growing rapidly, but the value Ethereum can capture from L2 is still very limited. Ethereum’s current strategy is to let L2 develop first and then focus on value capture later. This strategy itself isn’t wrong when looking at the long term. However, if there’s no centralization among L2s, that’s fine. But currently, the concentration of base/arbitrum is too high. Ethereum needs more application-specific L2s like lighter/worldcoin, rather than general-purpose L2s. If one or two L2s grow too large, they’ll control the users and traffic, which will reduce the reliance on and demand for Ethereum’s security services. Ethereum needs to accomplish two critical things before L2s completely take over: First, achieve L2 liquidity interoperability to create an ecosystem network effect and weaken the dominance of individual L2s. Second, quickly find a clear plan to enforce reasonable security fees for L2s at the code level, instead of the current situation where they’re almost parasitic. The time window for this won’t stay open forever. @ethereum @VitalikButerin