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TL;DR
- So, over 150 Ethereum layer 2 networks are out there, and a lot of them are centralized.
- Only the big players with tons of transaction volume might actually need their own layer 2.
- Launching a layer 2 can be cheaper than starting a whole new layer 1 blockchain. Crazy, right?
- Robinhood just jumped on the layer 2 train, showing there’s still buzz in the industry.
- But honestly, most layer 2 networks are struggling with low user engagement and transaction volumes.
Alright, fam, let’s dive into this! The whole Ethereum layer 2 scene is getting hotter, and companies are all over it, eager to level up their blockchain game. But here’s the tea: Paul Brody, EY’s Global Blockchain Leader (yeah, he knows his stuff), says that most companies probably don’t need to whip up their own layer 2 solutions. Why? Because there are already more than 150 of these networks out there, and a lot of them are centralized, tied to specific businesses. And speaking of big names, Robinhood just announced it’s building its own layer 2 network. Like, can you say competition?
Ethereum is still the OG when it comes to smart contracts and all things digital assets, stablecoins, and DeFi (that’s decentralized finance, for the uninitiated). It just celebrated its 10th birthday in July 2023, and it’s holding strong with about 50% of the DeFi ecosystem. Layer 2 networks sit on top of Ethereum, soaking up its benefits while letting companies keep their own vibe.
Now, why would anyone want to launch a layer 2 network? It’s like having your cake and eating it too—you get control and still get to play nice with the larger Ethereum universe. Plus, centralized layer 2s can set their own pricing and manage access, kind of like having your exclusive VIP club (but, you know, for transactions). They do have to buy transaction space on the Ethereum mainnet, but it’s usually cheaper than rolling out a whole new layer 1 network. For example, Coinbase’s layer 2 network, Base, raked in $4.9 million in fee revenue back in June 2025 while only shelling out $50,000 in layer 1 fees. Talk about a good ROI!
But here’s the kicker: Brody says only companies that can pull in serious transaction volumes should even think about creating their own layer 2 networks. We’re talking about financial services giants like Coinbase and Kraken—those guys have the user base to back it up. If you’re a company thinking about jumping into the layer 2 game, you need to ask yourself some serious questions: Can you actually drive enough transaction volume? Are on-chain transactions a core part of your business model? And what unique sauce are you bringing to the table that existing networks don’t already provide?
A lot of the current layer 2 networks are kind of floundering in a crowded market. Most of them are reporting less than $1 million in total value locked (TVL) and low user activity. So, Brody’s advice? For most companies, just connecting to Ethereum or using existing layer 2 networks is probably a smarter move than trying to build your own. Skip the hassles and costs of operating your own network.
This whole trend of companies launching their own layer 2 networks is kind of reminiscent of the past craze over private blockchains that didn’t really deliver much. The idea of controlling your own ecosystem might sound fab, but public chains usually offer way more openness and interoperability. So while centralized layer 2 networks aren’t necessarily doomed, the odds of success for most are still pretty murky.
In a nutshell, as the layer 2 scene keeps evolving, most companies will likely find that teaming up within the existing Ethereum framework is the way to go instead of chasing their own solo networks. Let’s focus on working together to harness the power of the larger blockchain community for maximum efficiency and innovation.
Takeaway: Most companies should consider the collaborative opportunities within existing Ethereum networks rather than pursuing their own layer 2 solutions.
See also: How to store Bitcoin safely
See also: What is DeFi?
Sources
- Your Company Probably Doesn’t Need Its Own L2 — https://www.coindesk.com/opinion/2025/09/09/your-company-probably-doesn-t-need-its-own-l2
This article is a summarized news brief for informational purposes only. Not financial advice.
Quick reminder: This isn’t financial advice. We’re just keeping you in the loop. Stay safe out there!