Ethereum fees are plummeting so fast that Vitalik Buterin says most Layer 2 chains now lack purpose

Ethereum was cheaper than expected in 2020, and rollup decentralization was slower than promised in 2021. Those two realities are forced the ecosystem to rewrite what “a layer-2” is for.

Vitalik Buterin’s recent post on Ethereum Research bluntly frames the shift: the original vision of layer-2 (L2) blockchains as “branded shards” of Ethereum is no longer viable, and the ecosystem requires a new path.

However, this isn’t abandonment. Instead, it is a re-tiering of expectations and a sharper…