🗑 The future of all L2 projects.

By and large, a lot now depends on the position of ETH and the further vector of its development.

If the team led by Vitalik continues to promote the current scaling model and the ecosystem can prove its viability in practice, there will be no problems.

If the market finally doubts the effectiveness of the chosen path, the pressure may increase, with the subsequent extinction of the concept as L2.

The key point is whether ETH is able to unstick itself from BTC and begin to form its own dynamics.

If ETH gains strength, global risks for alts will become noticeably smaller, and the scenario of liquidity flowing into alts will become more plausible.

As for projects that are worth something, their drawdown seems more likely to be a reflection of general market weakness. Now pressure is observed in almost all sectors, and this is not a problem of individual projects.

An additional complexity is that the boundaries between sectors have blurred: L2, DeFi, AI, modular solutions are all mixed up, and it becomes more difficult to objectively assess the real value.

I believe that if nothing changes and the ETH team does not prove that the market needs it, L2 may not exist. That's it.

#Reflections

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