Ethereum’s Future Hinges on Rollup Evolution: Arkham Analyzes L1-L2 Dynamics

Arkham Research dives deep into Ethereum’s future, suggesting its success hinges on the evolution of Layer 2 (L2) ecosystems. The firm argues that Ethereum’s value will be driven by how much activity shifts to L2s, impacting the flow of value back to the base layer. If this shift occurs, it could solidify Ethereum’s position as a dominant force in DeFi, while continued dominance solely based on network size may not guarantee success.