Ethereum scales through multi-layer 2 (L2) networks, allowing different execution environments and block times to form multiple high-throughput sidechains, offering unique value propositions. Avail co-founder Anurag Arjun points out that this diversified L2 architecture differentiates Ethereum from high-throughput competitors with a single architecture. However, the lack of true interoperability still makes switching between different L2s complex. Critics of Ethereum argue that L2 solutions lead to liquidity fragmentation, affecting the performance of Ethereum's base layer and even impacting the ETH price. Santiment analyst Brian Quinlivan notes that Ethereum base layer transaction fees have dropped to a five-year low, reflecting reduced demand and investor interest, leading institutional investors to decrease ETH allocations and adjust price expectations.

AVAIL

Ethereum's focus on scaling through many layer-2 networks, each with its own transaction processing speed and parameters, potentially gives the network an unlimited number of unique high-throughput chains, according to Anurag Arjun, co-founder of Avail, a unified chain abstraction solution. In an interview with Cointelegraph, Arjun acknowledged that Ethereum and high-throughput competitors with monolithic architecture are fundamentally different products. However, Ethereum's choice to scale through a plethora of L2 solutions gives it an overlooked quality: "The under-appreciated beauty of this rollup-centric roadmap architecture is that it allows multiple teams to experiment with different execution environments and different block times." This allows a diverse set of high-throughput sidechains to appear rather than just one singular architecture on any monolithic layer-1s, the executive added. However, without true interoperability, switching between L2s will remain as complex as bridging assets between different blockchain ecosystems altogether, Arjun warned. The Avail co-founder's perspective runs contrary to the many critics of Ethereum's L2-focused approach, who say that the network's scaling solutions silo liquidity and are ultimately corrosive to the base layer. Ethereum's critics argue that L2s are one of the primary causes of Ether's ( ETH ) poor price performance in the last year. Related: Vitalik Buterin proposes swapping EVM language for RISC-V Fees on the Ethereum layer-1 network dropped to five-year lows in April 2025, with the average transaction fee sitting at around $0.16. According to Brian Quinlivan, the marketing director for the Santiment onchain analytics firm, the reduction in fees signals decreased demand for the base layer and waning investor interest in Ethereum. "This large reduction in fees coincides with fewer people sending ETH and interacting with smart contracts," Quinlivan wrote in an April 16 blog post. These smart contract interactions include transactions across decentralized finance, digital collectibles like non-fungible tokens (NFTs), and other digital asset sectors, the Santiment executive added. Ether's declining base layer transaction fees and reduced retail interest also caused many institutional investors to slash their Ether allocations and issue revised price outlooks for the second-largest digital asset by market capitalization. Magazine: Make Ethereum feel like Ethereum again: Based rollups explained 

Ethereum Layer 2 Diversified Scaling Strategies and Their Impact on Network Value and Market Performance