A new debate has emerged around Ethereum’s approach to scaling, fueled by the network’s use of multiple layer-2 solutions. This strategy allows for diverse speeds and parameters across various chains while offering potentially limitless high-throughput options. Anurag Arjun, co-founder of Avail, an L2 solution provider, highlights that this contrasts with competitors’ monolithic architectures. Ethereum’s approach fosters a range of high-throughput sidechains rather than a singular layer-1 architecture. However, Arjun cautions that true interoperability between these L2 chains remains complex, even if their creation is a significant step forward. This contrast sparks debate with critics arguing that Ethereum’s L2 solutions are isolating liquidity and undermining the base layer, negatively impacting ETH’s price performance. For example, some point to fees dropping to five-year lows in April 2025 as proof of reduced demand for the base layer and investor disinterest in the network. Brian Quinlivan, marketing director at Santiment, an onchain analytics firm, suggests that these fee reductions reflect decreased demand for Ethereum’s base layer and a decline in investor interest. This situation has led many institutional investors to reevaluate their Ether allocations, impacting price outlooks for ETH which remains the second-largest crypto asset by market capitalization. The debate over Ethereum’s scaling strategy now fuels discussions about its future performance, investor sentiment, and the network’s overall impact.