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203 - ETH in 2024

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The Future of Layer 2 Solutions in Crypto

Layer 2 solutions are expected to have a longer shelf life and will likely form super chains made up of various rollups and L2s that can interoperate with each other. These super chains are anticipated to have a power law effect and dominate the market share. Despite this, there will continue to be experimentation in the space, and failed L2 solutions can be repurposed for other L2s. For instance, Polygon acquiring Hermes, an L2, and integrating it into their ecosystem exemplifies this trend, facilitated by the open-source nature of the technology.

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