
Jakarta, Pintu News – The cryptocurrency market is entering a new phase as major networks change direction. Ethereum is now starting to re-evaluate the rollup-first strategy that has been the foundation of its scalability. This move marks an important shift in the crypto ecosystem that both investors and beginners need to understand.
Over the past few years, Ethereum has relied on a rollup-first strategy to overcome scalability limitations. This approach places Layer 2 as the primary solution to lower fees and increase transaction capacity. However, the network landscape is changing as Layer 1 performance improves.
Increased gas limits and protocol efficiency make Layer 1 Ethereum capable of processing more transactions directly. This reduces the absolute reliance on rollups as a scalability solution. In the context of cryptocurrency, these changes show the evolution of a more balanced network design.
Read More: 7 Impacts of Japan’s Political Victory on BTC & Gold Prices
Ethereum’s Layer 1 now offers more competitive transaction fees than in the past. This reduction in fees has made direct use of Layer 1 attractive again for crypto users and application developers. In some cases, Layer 1 transactions have become more efficient without the need to move to Layer 2.
For crypto investors, this increase impacts the overall utility of the network. The more activity Layer 1 can handle, the stronger Ethereum’s fundamentals as cryptocurrency infrastructure become. This also has the potential to impact the distribution of liquidity in the ecosystem.
One of the main reasons for evaluating rollup strategies is the slow progress of decentralization in a number of Layer 2 networks. Many rollups still rely on centralized structures, which pose security and governance risks. This is a concern for the long-term development of Ethereum.
In the crypto ecosystem, decentralization is a core value that affects user trust. When Layer 2 is not fully mature, its role as an extension of Layer 1 becomes less than ideal. This prompted Ethereum to revisit the strategic positioning of rollups.
Instead of just focusing on scalability, Layer 2 is now considered to have a more specific role. Some Layer 2 networks are geared towards specific use cases, such as DeFi, gaming, or privacy applications. This approach places Layer 2 as a standalone product, not just a technical solution.
These changes reflect the maturity of the cryptocurrency ecosystem. Each layer of the network is starting to adjust functions based on market needs. For investors, understanding Layer 2’s new role helps to assess a project’s potential more objectively.
The evaluation of the rollup-first strategy has important implications for crypto investors. With Layer 1 getting stronger, the cost and complexity of using Ethereum may decrease. This could potentially increase the adoption of the cryptocurrency among general users.
However, architectural changes also mean new dynamics in the ecosystem. Novice investors need to understand that technological evolution is often gradual and does not always have an instant impact on prices. A rational approach and fundamental understanding remains key in navigating the crypto market.
Also Read: 5 Facts Robert Kiyosaki is Ready to Buy Bitcoin if it Falls to the Level of IDR101 Million
Follow us on Google News to stay up to date with the latest crypto and blockchain technology. Check Bitcoin price, USDT to IDR and Nvidia stock price tokenized via Pintu Market.
Enjoy an easy and secure crypto trading experience by downloading the Pintu crypto app via Play Store or App Store now. Also, experience web trading with advanced trading tools such as pro charting, various order types, and portfolio tracker only at Pintu Pro.
*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.
Reference