Vitalik Buterin argues crypto needs fewer L1s, not more

Vitalik Buterin stated the crypto space does not need more L1 infrastructure, just a day after claiming the L2 model is overdone and broken. Buterin warned against non-EVM layers as virtually useless.

Vitalik Buterin dealt another blow against yet another ‘Ethereum killer’, claiming hardly anyone needed another EVM-compatible L1 chain. The renewed discussion came just a day after Buterin stated that L2 no longer makes sense, as Cryptopolitan reported.

This time, Buterin attacked the creation of L1, using hype to draw attention to yet more newly created networks.

Buterin was direct in disclaiming any more attempts to create more L1 infrastructure:

“If you make an EVM chain *without* an optimistic bridge to Ethereum (aka an alt L1), that’s even worse. We don’t friggin need more copypasta EVM chains, and we definitely don’t need even more L1s,” he wrote in a longer post.

Even new chains compatible with Ethereum were now redundant, endlessly copying the model of other networks with an optimistic bridge to the main network. Despite the creation of new chains, nothing guarantees an inflow of users or liquidity.

Vitalik Buterin calls for more useful products

Buterin has called for building useful products, citing some of his favorite areas such as privacy, fast apps, and low-latency products. He also called out projects not to make a ‘connection to Ethereum’ the main feature. Buterin called out against teams that used his reputation to promote their networks. In late 2024, Buterin also stopped mentioning new L2s if they were not evolving to a more decentralized stage.

Previously, the proximity to Ethereum was used as a narrative driver for both L2 and L1 chains. Bridging and inflows were also used as a proxy for success, though bridging was sometimes incentivized with point farming programs.

Buterin made an exception for app chains, which have a singular use case, such as prediction markets. Some chains may have a suitable architecture tailored to one powerful app, instead of aiming to become a general activity and tokenization hub.

Connected L1 with their own L2 may be a more suitable architecture, as Buterin once again spoke against bridges. Bridging has proven to be a low-capacity method to move liquidity, and one exceedingly at risk for exploits.

L1s slow down activity, value deposits

L1s activity has slowed down, though Ethereum remains an exception. L1 expansion happened mostly in 2024, while most chains coasted at a higher baseline level of daily active wallets.

L1 chains operate at a higher baseline, but have stalled in the past year, with outflows of users and value. Smaller chains carry a limited number of transactions. | Source: Token Terminal.

The usage of L1 was mostly linked to specific apps and the available liquidity. Solana and BNB Chain remained active based on meme token trading, while Ethereum retained its status as a key DeFi hub.

The value locked in L1 chains also declined in the past month, due to the crypto market crash. Solana lost over 21% of its value locked, while Ethereum saw an outflow of over 22%.

Some niche, smaller chains saw an increase in value, but most fail to show sustainable growth. Even high-profile L1 like Berachain has gone quiet, handling a limited number of real economic transfers.

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