Ethereum co-founder Vitalik Buterin recently published a post calling for Layer 2 networks to re-examine their positioning. Data shows that over the past six months, monthly active addresses on Layer 2 networks have plummeted from approximately 58.4 million to 30 million, while the Ethereum mainnet has strengthened against the trend, with active addresses increasing from about 7 million to 15 million. As mainnet transaction fees drop to historic lows and gas limits are expected to gradually increase before 2026, Layer 1 is now capable of handling more transactions independently, prompting users to return to the main chain.
Buterin pointed out that the original mission of Layer 2 as a “scaling tool” is weakening. Initially, they were seen as “sharding” for Ethereum, but now the mainnet can process transactions at lower costs. Meanwhile, some Layer 2 projects are making slow progress on security and decentralization goals, and some even prefer to retain control to meet compliance requirements, creating tension with Ethereum’s permissionless philosophy.
Market sentiment also reflects these concerns through price movements. In January 2026, mainstream Layer 2 tokens generally declined by 15% to 30%, and the total market cap of the sector shrank to about $7.95 billion. Changes in user behavior are also evident: when cost is no longer the main barrier, the more secure main chain becomes more attractive.
In response, Buterin suggests that Layer 2 should explore “beyond scalability” new value propositions, including privacy-focused virtual machines, application-specific optimizations, and dedicated architectures for non-financial scenarios such as social networking, identity, and artificial intelligence. He also emphasized that secondary networks managing Ethereum assets should at least meet the first phase of security standards and improve interoperability. Native Rollup precompiles are seen as critical infrastructure, enabling Ethereum to verify proofs directly and keep pace with protocol upgrades.
As Ethereum’s base layer continues to evolve, Layer 2 is at a pivotal point of transformation. Its future position will depend on whether it can offer unique features beyond just low fees.
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