Ethereum co-founder Joe Lubin on the future of Ethereum — DAS

Ethereum ( $2,444.89 ) co-founder Joe Lubin discussed the future of the smart contract network at the Digital Asset Summit and said layer-2 (L2) scaling networks would continue to be central to the Ethereum ( $2,444.89 ) ecosystem.

In an exclusive interview with Cointelegraph’s Turner Wright, Lubin said applications will require next-generation databases powered by high-throughput blockchain technologies. The Ethereum ( $2,444.89 ) co-founder added:

“The Ethereum ( $2,444.89 ) ecosystem is so big and so mature that it will be best for new kinds of databases — new kinds of layer 2 networks — to set up shop, as layer 2s of Ethereum ( $2,444.89 ) . We have our own that has some great characteristics called Linea.”

“Another great application, or great layer 2, that’s emerging soon is called MegaETH,” Lubin continued.

The Ethereum ( $2,444.89 ) co-founder ultimately concluded that newer layer-1 chains will have a tough time competing with the Ethereum ( $2,444.89 ) network, which already features robust architecture and security guarantees.

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Related: Ethereum ( $2,444.89 ) pushes back Pectra upgrade to conduct third testnet ‘Hoodi’

Investors have doubts about layer-2 approach

According to L2Beat, there are currently over 140 unique scaling solutions for Ethereum ( $2,444.89 ) , including 60 rollup networks.

Investors have criticized Ethereum ( $2,444.89 ) ’s layer-2 networks as parasitic elements that drain the layer-1 network of revenues while only contributing minimal economic value to the base layer.

Ethereum ( $2,444.89 ) ’s average gas fee dropped by 95% following the Dencun upgrade in March 2024, which dramatically lowered transaction fees for layer-2 networks.

This reduction in transaction fees caused a 99% collapse in revenue on the Ethereum ( $2,444.89 ) base layer by September 2024.

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Since that time, the price of Ether (ETH) has generally been in decline, plummeting to a recent low of approximately $1,759 on March 11 and leading many analysts to predict a further price decline in 2025.

Data from Farside Investors shows outflows from Ether exchange-traded funds (ETFs) have continued for 11 consecutive days amid a broader downturn in the crypto markets.

The most significant day of outflows occurred on March 13, when investors pulled a collective $73.6 million from ETH ETFs as they dumped risk-on assets for less volatile alternatives such as cash, government securities and dollar-pegged stablecoins.

Magazine: MegaETH launch could save Ethereum ( $2,444.89 ) … but at what cost?