ETH's tactical problem is the L2 free market. It is a great approach from the perspective of finding the right technical solution and remaining decentralized, but the externalities eat away at the user experience, which is  equally if not more important. 

There is simply no way for a normal user to understand what they are getting into with layers, chains, 7702 wallets, evm compatibility and bridges. 

There is a light at the end of the tunnel if we make blobs bigger, introduce account + chain abstraction, native rollups etc, but this is a massively complex roadmap and will take years to realize. 

In that time, Solana just works (tm) and is eating ETHs lunch.

Technowatermelon. Elder Millenial. Building Farcaster. 

nf.td/varun

I agree, but this is a very retail-centric perspective. The ability of L2s (and L3s, etc) to somewhat silo themselves but still benefit from Ethereum security is precisely what will bring institutions to the Ethereum stack, which is where the vast majority of the volume will come from in the next 5-10 years.

/bettik founder /outercorps stalwart | ex-binance, ex-celsiusX

Building @basketdotfarm on @base -- an onchain index creator. Supporting @percs.

Yes, the vast majority of volume will be institutional users (B2B or B2C) who have no idea they’re on blockchain

Most institutions are coming to target existing onchain users.

In your example, institutions will have to bring their own users to justify their own L2s.