- Yakovenko says Layer-2s rely on Layer-1 data and add complexity through fraud proofs and multisig processes.
- He believes Solana’s architecture can support all functions, rivaling Ethereum’s L2s with simpler infrastructure.
- Ethereum’s L2 reliance raises fragmentation concerns as over 140 scaling solutions now exist on the network.
Solana co-founder Anatoly Yakovenko has repeated his stance that Layer-2 scaling solutions are unnecessary. He argued that Layer-1 platforms such as Solana can already offer fast, cost-effective, and secure transactions without the need for added infrastructure.
Yakovenko warned that L2s often require complex components like fraud proofs and multi-signature mechanisms, making them more dependent on the Layer-1 they build upon.
Solana’s structure bypasses L2 challenges
He highlighted that Solana does not encounter those issues because its architecture separates execution and data availability on a highly efficient base layer. Yakovenko also criticized assumptions about storage constraints, calling Solana’s 80 terabytes per year of data “measly.” He suggested developers should avoid building what he referred to as “valueless” L2 projects, advising instead to launch a token directly if there is no strong utility case.
Yakovenko emphasized that Solana competes directly with Ethereum’s Layer-2 networks rather than Ethereum’s base layer. He noted that multiple L2s are redundant, suggesting that a well-designed L2 with parallel execution could handle all blockchain functions alone. Hence, Solana’s design is positioned as an alternative that can achieve similar goals without fragmentation or inefficiencies.
Ethereum sees different direction through L2 support
While Yakovenko criticized L2 expansion, Ethereum co-founder Joseph Lubin defended the network’s shift toward Layer-2 reliance. Speaking at the Digital Asset Summit, Lubin noted that Ethereum’s security and strong foundation allow scalable L2 networks like Linea and MegaETH to thrive. However, the sharp drop in Ethereum’s base-layer revenue, following the Dencun upgrade in March 2024, has drawn concern.
The Ethereum network supports over 140 scaling systems and over 60 rollup protocols. This has raised concerns regarding ecosystem fragmentation and value distribution. Although the upgrade significantly lowered fees, it also reduced base revenue by 99 percent, triggering debate about sustainability.
Criticism grows over Ethereum’s access and privacy issues
Some users have voiced concern over Ethereum’s permission structure and lack of built-in privacy tools. Critics argue that new entrants must comply with identity checks, weakening decentralization. Others maintain that Ethereum remains permissionless, although the shift to proof-of-stake has changed the entry dynamics.
Ethereum is hovering around a crucial support level between $1,886 and $1,944, with more than 3 million addresses holding over 6 million ETH. On-chain data shows a notable outflow of ETH from exchanges, with over 1.2 million ETH removed in the past seven weeks, possibly signaling accumulation by long-term holders.
