Ethereum Layer 2 scaling solutions, which are designed to improve scalability and reduce transaction costs, are approaching their limits in efficiently scaling the Ethereum mainnet. The demand for Layer 2 protocols has significantly increased, with just two protocols accounting for 55% of the daily activity. This sustained demand could quickly deplete available capacity. The use of blobs, or binary large objects, in layer 2 protocols has also increased, leading to higher base fees and impacting user costs. Despite plans to raise the blob limit in a 2025 upgrade, experts believe this will only provide a short-term solution.



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