The push towards layer-2 scalability might threaten Ether’s value by dispersing liquidity across multiple platforms. Binance Research indicates that L2 networks could cannibalize Ethereum’s core value, directly affecting Ether’s pricing and its competitive edge against rivals such as Solana and BNB Smart Chain.
While upcoming upgrades, Pectra and Fusaka, aim to enhance Ethereum’s performance and reduce transaction costs, they may not yield immediate benefits for Ether’s value. Aligning incentives between Ethereum and its layer-2 solutions will be crucial for maintaining sustainable value flow back to the asset.
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