Ethereum L2s: Cannibalism or Collaboration? Sygnum Bank Weighs In

The Ethereum network, once a powerhouse of daily fees exceeding $30 million, has seen a significant downturn in recent times. Daily fees now hover between a modest $1 million to $5 million, prompting a debate about the impact of Layer-2 (L2) scaling solutions. Are these solutions, designed to alleviate network congestion and reduce fees, actually cannibalizing revenue? Sygnum Bank, a leading financial institution specializing in digital assets, offers a nuanced perspective.