Crypto exchange Coinbase is analyzing the impact that scaling solutions could have on the Ethereum (ETH) blockchain.
In a research report, Coinbase says that layer-2 scaling solutions (L2s) could cannibalize Ethereum’s revenue.
“The future of L2s could very well be a zero-sum game, as whichever L2 houses the majority of decentralized applications could one day power the entirety of the Ethereum ecosystem. That suggests that L2s could eventually divert revenue away from Ethereum itself.”
Coinbase says that over the past 12 months, scaling solutions such as Polygon (MATIC), Optimism (OP) and Arbitrum have generated less than one percent of the revenue that Ethereum pulled in.
“Over the last 12 months, Token Terminal has reported that Ethereum has earned $9.971 billion in total revenue compared to an aggregate of only approximately $78 million on Arbitrum, Polygon and Optimism.”
The crypto exchange says that once Ethereum transitions to a proof-of-stake (PoS) consensus mechanism, the...
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