DenCun upgrade was successful, you choose Ethereum Layer-1 or Layer-2?

[KryptoBull]

Breaking the trend of delays, the Ethereum Foundation finally delivered the DenCun upgrade on schedule in Q1 of 2024. As promised, the Dencun upgrade brings significantly lower transaction costs for users of Layer-2 scaling solutions. Transaction fees on Ethereum Layer-2 solutions like Arbitrum, Optimism, Base, zkSync, and Zora... have dropped significantly to just a few cents per transaction ^[1]. This translates to a much more user-friendly experience for anyone interacting with dApps built on these Layer-2 solutions, potentially making Ethereum dApps much more accessible to a wider audience.

Although there are still some limitations in terms of decentralization and security on Layer-2 ^[2], I believe that DenCun will have a positive impact on the development of the Ethereum ecosystem in the long term. I also often choose Optimism to transfer my ETH, however, I recognize a few problems:

• While the Dencun upgrade directly benefits users, it hasn't yet translated into a surge for the native tokens of these Layer-2 solutions. For example, the price of native tokens like ARB and OP has not seen any significant fluctuations. This could be because the good news about DenCun was already priced in before the event took place, or because investors are still being cautious and are putting their money into ETH tokens.
• Transaction fees on Ethereum Layer-1 are still very expensive, about 1000 times higher than the transaction fees on Layer-2 ^[3]. This means that users are still actively using Ethereum instead of switching to the Layer-2 experience. Data on Coinmarketcap shows that in the past 24 hours, the trading volume on Ethereum was $3.25B, on Arbitrum was $1.1B, on Optimism was $128M, on Base was $155M ^[4]. This proves that users still continue to trust and choose to trade on Ethereum instead of coming to Layer-2 solutions. Low transaction fees are not the top priority for users and investors, because people come to the market to find opportunities and profits, not just to save on transaction fees.

I myself will continue to prioritize using Layer-2 while waiting for new scaling solutions for Ethereum Layer-1 in the future.

I want to know your opinion on Ethereum Layer-2:

• Are you using Ethereum Layer-2? Which one?
• Do you trust Ethereum Layer-2 solutions?
• Would you choose to invest in Layer-2 native tokens such as ARB and OP instead of ETH?

References:
[1] Layer 2 Blockchains Become Cheaper After Ethereum's Dencun Upgrade
[2] Debating Dencun: Will Ethereum's Big Update Help or Harm the Network?
[3] Optimism Mainnet - L2 Gas Price Tracker
[4] Coinmarketcap: Top Cryptocurrency Decentralized Exchanges
Note:

• My opinion was posted first in that topic, on Bitcointalk
• I leave the source link to avoid plagiarism accusation.
• I excluded/ included minor things from an original thread ^{if necessary}.

[Wiseman]

Why not trust them, they are popular blockchains that perform well and are much cheaper than etherеum, plus they are now heavily invested in by big investment funds, which means you can make money on them too

[MrSpasybo]

I myself will continue to prioritize using Layer-2 while waiting for new scaling solutions for Ethereum Layer-1 in the future.

I want to know your opinion on Ethereum Layer-2:

• Are you using Ethereum Layer-2? Which one?
• Do you trust Ethereum Layer-2 solutions?
• Would you choose to invest in Layer-2 native tokens such as ARB and OP instead of ETH?

I also think that the bullish momentum from DenCun has been absorbed into the price action for many months now, bringing ETH to the $4K zone and stabilizing there. Layer-2 native tokens such as ARB and OP have also performed very well, they need to re-accumulate to be ready for the bullrun.

1. Currently, I often use BNB chain, I have never used Ethereum Layer-2, but I will refer to Arbitrum because this ecosystem is developing very strongly, accounting for the majority of the trading volume of Layer-2.

2. Layer-2 solutions based on Optimistic Rollups still have many problems but there have been no serious incidents so far so I still trust them, even though I know it is necessary to trade off a bit of decentralization.

3. If I had to choose, I would choose both ETH and ARB, with ETH accounting for the majority of the capital to ensure safety, and ARB accounting for the smaller portion with greater growth potential.

[KryptoBull]

Why not trust them, they are popular blockchains that perform well and are much cheaper than etherеum, plus they are now heavily invested in by big investment funds, which means you can make money on them too

The participation of large investment funds in Layer-2 projects is what attracts me, so tokens like ARB, OP, METIS, STRK are really attractive investment-wise because they promise huge profits in uptrends like what SOL and FTM did in the 2021 uptrend. Many users also have positive feedback when they now only have to pay dozens of times lower fees, DenCun has really brought a lot of value to Ethereum users.

I also think that the bullish momentum from DenCun has been absorbed into the price action for many months now, bringing ETH to the $4K zone and stabilizing there. Layer-2 native tokens such as ARB and OP have also performed very well, they need to re-accumulate to be ready for the bullrun.

1. Currently, I often use BNB chain, I have never used Ethereum Layer-2, but I will refer to Arbitrum because this ecosystem is developing very strongly, accounting for the majority of the trading volume of Layer-2.

2. Layer-2 solutions based on Optimistic Rollups still have many problems but there have been no serious incidents so far so I still trust them, even though I know it is necessary to trade off a bit of decentralization.

3. If I had to choose, I would choose both ETH and ARB, with ETH accounting for the majority of the capital to ensure safety, and ARB accounting for the smaller portion with greater growth potential.

DenCun is deployed by the Ethereum Foundation, which means that Layer-2 is really important to the Ethereum ecosystem. We can also temporarily trust its security. You can also try using it to understand its superior advantages, which Ethereum has not yet been able to do.

I also believe that Layer-2 will be one of the biggest trends of the 2024-2025 uptrend and no one wants to miss the opportunity to earn a lot of profit from the price increase of these native tokens and other tokens in the Layer-2 trend.

[Trongduy]

Why not trust them, they are popular blockchains that perform well and are much cheaper than etherеum, plus they are now heavily invested in by big investment funds, which means you can make money on them too

Similar to the Bitcoin network: Most people still prefer to move BTC on the main network rather than using layer 2 solutions like Stack or RootStock. They trust Bitcoin, not other solutions. I think Ethereum is also prioritized like that: users with large capital will only prefer to use Ethereum and are willing to pay high fees to get maximum security instead of taking a little risk with layer 2.

Layer 2 solutions have been introduced strongly since the beginning of 2023, but their transaction volume has not yet been able to match the volume on layer 1 Ethereum. They need more time to prove their value and convince users to switch to experience and use them.

[KryptoBull]

Similar to the Bitcoin network: Most people still prefer to move BTC on the main network rather than using layer 2 solutions like Stack or RootStock. They trust Bitcoin, not other solutions. I think Ethereum is also prioritized like that: users with large capital will only prefer to use Ethereum and are willing to pay high fees to get maximum security instead of taking a little risk with layer 2.

Layer 2 solutions have been introduced strongly since the beginning of 2023, but their transaction volume has not yet been able to match the volume on layer 1 Ethereum. They need more time to prove their value and convince users to switch to experience and use them.

If the potential of layer 2 is significantly better than layer 1 in terms of speed and transaction fees, users will choose to use layer 2, there is no reason to transfer/swap on layer 1 Ethereum to pay tens of dollars in fees. For example, if you transfer ETH on the Optimism network, it only costs a few cents, and when you swap, it is also much cheaper and more convenient...

I think only large organizations or users with large amounts of money will really care about the security of the network and will continue to use layer 1 to avoid even the smallest risk. In the future, Ethereum layer 1 will probably only serve for such purposes and store data sent by layer 2.

[damsix]

• Are you using Ethereum Layer-2? Which one?

I also use Ethereum L2, such as Arbitrum, OPtimism, Starknet, Zksync, but the one that interacts the most with Ethereum L2 is zkSync.
I'm using L2 zkSync to target Retrodrop, hopefully I'm also eligible for Retrodrop zkSync.

• Do you trust Ethereum Layer-2 solutions?

Yes, because transaction fees from Ethereum L2 can reduce transaction gas costs to be cheap, even though the costs are not much different from Ethereum L1, at least Ethereum L2 transactions can be cheaper to use in various transactions.

• Would you choose to invest in Layer-2 native tokens such as ARB and OP instead of ETH?

There is a certain importance of Ethereum L1 and L2 because they also have different purposes.
All altcoinstalks members know that Ethereum L1 has very complex advantages in various markets, Smart contacts, tokens, gas fees, Dapps etc.

Ethereum L2 also has almost the same function which is not much different from Ethereum L1 and as a result the fees are cheaper for L2 than L1.

[KryptoBull]

I also use Ethereum L2, such as Arbitrum, OPtimism, Starknet, Zksync, but the one that interacts the most with Ethereum L2 is zkSync.
I'm using L2 zkSync to target Retrodrop, hopefully I'm also eligible for Retrodrop zkSync.

Yes, because transaction fees from Ethereum L2 can reduce transaction gas costs to be cheap, even though the costs are not much different from Ethereum L1, at least Ethereum L2 transactions can be cheaper to use in various transactions.

There is a certain importance of Ethereum L1 and L2 because they also have different purposes.
All altcoinstalks members know that Ethereum L1 has very complex advantages in various markets, Smart contacts, tokens, gas fees, Dapps etc.

Ethereum L2 also has almost the same function which is not much different from Ethereum L1 and as a result the fees are cheaper for L2 than L1.

I see that the fees on layer-2 are already dozens of times cheaper than the fees on layer-1, which is why they are really attractive to users from layer-1. I also follow many layer-2s but don't trust the zK technology for layer-2, zK is still too complex and hasn't been deployed effectively and safely for users. Anyway, I wish you will receive a big reward from the airdrop in the future.

In comparison, layer-1 has better security and decentralization than layer-2. The Ethereum blockchain will still be the choice of large organizations when they seek maximum security for their transactions.

[Google+]

I see that the fees on layer-2 are already dozens of times cheaper than the fees on layer-1, which is why they are really attractive to users from layer-1. I also follow many layer-2s but don't trust the zK technology for layer-2, zK is still too complex and hasn't been deployed effectively and safely for users. Anyway, I wish you will receive a big reward from the airdrop in the future.

In comparison, layer-1 has better security and decentralization than layer-2. The Ethereum blockchain will still be the choice of large organizations when they seek maximum security for their transactions.

Currently the zK project is still in the development stage and still has many bugs that need to be fixed before it is launched on a very large scale, zK is doing this because they want to provide the best experience with the platform they created, hopefully zK can be used on a large scale quickly at some stage.

[cebo]

-

I will choose Ethereum Layer-1 because I feel it is the most valuable.
Ethereum Layer-2 is the same as an exchange that exchanges Ethereum Layer-1 for tokens that have their own blockchain.
It is possible that Ethereum Layer-2 could go bankrupt or collapse if no one uses it and this is very dangerous for our assets. This is only my opinion about comparison of Ethereum Layer-1 and Ethereum Layer-2.

[KryptoBull]

I will choose Ethereum Layer-1 because I feel it is the most valuable.
Ethereum Layer-2 is the same as an exchange that exchanges Ethereum Layer-1 for tokens that have their own blockchain.
It is possible that Ethereum Layer-2 could go bankrupt or collapse if no one uses it and this is very dangerous for our assets. This is only my opinion about comparison of Ethereum Layer-1 and Ethereum Layer-2.

Currently, Layer-2 solutions such as Arb, Base, and Op are very active and have many users. We can be confident in their future because they offer high speed and hundreds of times lower costs than Ethereum Layer-1. The only problem is that they are less decentralized and less secure than Ethereum, they only inherit and utilize a part of Ethereum's security. I believe that large organizations will still choose Ethereum to transfer large assets with maximum security.

[taufik123]

Currently, Layer-2 solutions such as Arb, Base, and Op are very active and have many users. We can be confident in their future because they offer high speed and hundreds of times lower costs than Ethereum Layer-1. The only problem is that they are less decentralized and less secure than Ethereum, they only inherit and utilize a part of Ethereum's security. I believe that large organizations will still choose Ethereum to transfer large assets with maximum security.

Ethereum will remain mainstream, the parent of all layers 2.
Layer 2 is only an optional option to explore the Ethereum network at a different and cheaper level.

ARB and OP are now not very popular, now the base is a fairly crowded chain and some Solana users move to the base and make memecoins so that the baase network traffic is quite crowded.
This is because the fees in the chain base are also very cheap and not inferior to solana.

[KryptoBull]

Ethereum will remain mainstream, the parent of all layers 2.
Layer 2 is only an optional option to explore the Ethereum network at a different and cheaper level.

ARB and OP are now not very popular, now the base is a fairly crowded chain and some Solana users move to the base and make memecoins so that the baase network traffic is quite crowded.
This is because the fees in the chain base are also very cheap and not inferior to solana.

Similar to Solana, Base is developing very quickly thanks to memecoins, but in terms of trading volume, Arbitrum is still the largest Layer-2. Thanks to Layer-2 solutions, users have been able to experience blockchains with lower costs, higher speeds, and the same level of security as Ethereum. If they accept the reduction in decentralization and security, Layer-2 is more worth using than Layer-1 when Ethereum transaction fees can be used to buy a lot of ARB and OP tokens and become a valuable investment in the uptrend.

[joniboini]

If they accept the reduction in decentralization and security, Layer-2 is more worth using than Layer-1 when Ethereum transaction fees can be used to buy a lot of ARB and OP tokens and become a valuable investment in the uptrend.

I think people should use L2 because they genuinely need it, not necessarily because they can buy L2 tokens and get rich from that. But yeah, it is impossible to completely remove that incentive since most people are here for the money anyway. That being said, not every L2 is as cheap as they claim to be, especially if you're doing smart contract calls. Some of them are just as expensive as the main network, so there is literally no use for them except for airdrop farming, which is a bad product to rely on long-term.

[taufik123]

Similar to Solana, Base is developing very quickly thanks to memecoins, but in terms of trading volume, Arbitrum is still the largest Layer-2. Thanks to Layer-2 solutions, users have been able to experience blockchains with lower costs, higher speeds, and the same level of security as Ethereum. If they accept the reduction in decentralization and security, Layer-2 is more worth using than Layer-1 when Ethereum transaction fees can be used to buy a lot of ARB and OP tokens and become a valuable investment in the uptrend.

Almost never touched Arbitrum and never traded memecoins there.
The ARB hype was gone and didn't grow after they Airdropped, although being the largest layer 2 didn't make Arbitrum a desirable chain.
Even now SOL and Base are chains that print trillions of dollars and even have a lot of memecoin every day.