The Ethereum ecosystem stands at a pivotal moment. Over the past four years, scaling challenges have been addressed through Layer-2 (L2) solutions, rollups, and technological breakthroughs, expanding from processing 15 transactions per second to thousands, with costs dropping from $50 per swap to mere cents. The rollup-centric roadmap worked – it worked almost too well.

STORY CONTINUES BELOW

This success has introduced an unexpected challenge: fragmentation. With over 50 L2s and more in development, Ethereum has become a maze of isolated chains. Users now juggle multiple networks, bridge assets, and navigate complex processes to perform basic actions.

The irony? Transactions may be faster and cheaper, but the overall user experience sucks!

The Cost of Fragmentation

Fragmentation is more than a minor inconvenience – it’s becoming an existential threat to Ethereum’s future. Users face the daunting tasks of managing multiple networks, bridging assets, and executing intricate processes. A simple action, such as buying a token, may require switching networks, bridging assets, and multiple transactions. Each step introduces friction, confusion, and opportunities for error.

The impact on liquidity is even more severe. Capital becomes trapped in silos, reducing market efficiency and increasing costs for all partic

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Author: Hart Lambur

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