Layer 2 networks batch transactions off-chain and post compressed proofs back to Ethereum, cutting user costs but also cutting base-layer fee capture.
Since EIP-1559, a share of every mainnet fee is burned, offsetting ETH issuance. Lower fees mean less ETH burned through that channel.
A busy L2 ecosystem settling back to a secure base layer is the scaling roadmap working as designed, not a sign of declining relevance.
Watch whether L2 sequencers pay enough data-availability and settlement fees back to L1 to offset thinner per-transaction revenue over time.
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