How will Ethereum's Layer 2 solutions compete with Solana?

Author: Lanhu

The biggest problem with L2 solutions such as Arbitrum, Optimism, and zkSync is their excessive imitation of Ethereum L1 DeFi, leading to path dependency. However, L2s have their own unique characteristics and should carve out new paths suited for applications with higher performance demands. The market's greatest need for L2s isn't a shadow version of Ethereum L1, but entirely new L2 trajectories.

These new paths involve high-frequency applications. Just as Solana has pushed forward in DePIN, repeating previous approaches lacks explosive potential. Solana's ecosystem has indeed grasped this well—though it's also worth noting that shared investors between Helium and Solana may have played a role; readers can investigate this further. Ultimately, however, it's new experiments that generate fresh narratives, and it's these new narratives that ignite the market.

Moving forward, how will Arbitrum, Optimism, and zkSync compete with Solana? First, they must stop focusing primarily on replicating Ethereum L1 DeFi. While important, this approach ultimately won't break through existing limitations.

The priority must be creating new narratives. Key breakthroughs should be sought in Web3 gaming, AI, and DePIN. Developers are encouraged not to reinvent old wheels, but instead forge new battlefields—failing that, aggressively advancing DePIN remains a viable path.

Furthermore, Arbitrum, Optimism, and zkSync must direct their most valuable economic resource—their tokens—toward projects and developers in these emerging sectors. L2 ecosystems have a late-mover advantage in tokenomics and can design far better incentive programs than earlier blockchains.

Solana’s breakthrough serves as an excellent example for Arbitrum, Optimism, and zkSync—not one to dismiss, but to learn from.

If, by the first half of next year following the Cancun upgrade, Arbitrum, Optimism, or zkSync can produce several breakout applications in Web3 gaming, AI, DePIN, or other fields, meaningful change could begin to unfold.

Real competition between L2s like Arbitrum, Optimism, zkSync, and Solana will truly kick off in the second half of next year. Over the following two years, we’ll likely see who emerges victorious. It’s a long cycle—nothing is settled yet.

Ethereum-based ecosystems should also be grateful for the innovative breakthroughs on BTC and Solana. Without this "catfish effect," the Ethereum network might become too complacent. The recent momentum from BTC and Solana ecosystems is strong enough to capture Ethereum’s attention. The key is not to look down upon or oppose them, but to study how other ecosystems break through. Only through such learning can continuous progress be made. Ethereum has weathered multiple FUDs throughout its history—trust in the resilience of its developers and community.