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Why Vitalik Buterin Says L2s Aren’t Scaling Ethereum Anymore

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Why Vitalik Buterin Says L2s Aren't Scaling Ethereum Anymore


Buterin argued that many Layer 2s no longer meaningfully inherit Ethereum security.

Ethereum co-founder Vitalik Buterin said recent developments mean the original conception of Layer 2 scaling within the ETH ecosystem is no longer viable.

He said that the progress among many L2 networks has fallen short of earlier expectations, while the mainnet continues to scale directly.

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Slow Progress, Low Fees

In a recent post on X, Buterin pointed to two important realities reshaping the debate. First, there is the slow and difficult progress of L2s toward “stage 2” decentralization and interoperability, and the fact that Ethereum’s mainnet has already achieved very low fees, with gas limits expected to rise significantly through 2026.

Buterin reiterated that Ethereum scaling was originally defined as expanding block space that fully inherits Ethereum’s security. This means that all activity remains valid and censorship-resistant as long as the network operates. As such, systems that rely on multisig bridges or other forms of discretionary control cannot be considered extensions of Ethereum in this sense, even if they offer high throughput.

The co-founder explained that this framing no longer holds because the blockchain no longer needs L2s to function as “branded shards,” while many L2s are either unable or unwilling to meet the security and governance requirements that such a role would imply.

Buterin observed that some projects have explicitly stated they may never move beyond stage 1, not only due to technical concerns around zero-knowledge EVM safety, but also because regulatory or customer requirements necessitate ultimate control. While he said this may be appropriate for those projects’ use cases, it means they should not be described as scaling Ethereum under the original definition.

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Instead, Buterin suggested abandoning the idea that all Layer 2s should occupy the same category and be judged by the same criteria. He proposed that they be viewed as a broad spectrum of systems with varying degrees of connection to Ethereum. In this framing, some L2s may be fully backed by Ethereum’s security while others operate with more limited guarantees. This would allow users and applications to choose based on their needs.

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He added that L2s should focus on providing distinct value beyond generic scaling, such as specialized virtual machines, application-specific efficiency, extreme throughput, non-financial use cases, low-latency sequencing, or integrated services like oracles or dispute resolution. For networks handling ETH or Ethereum-issued assets, he said reaching at least stage 1 should be a minimum standard.

ZK-EVM Precompile

From Ethereum’s perspective, Buterin said he has become increasingly convinced of the importance of a native rollup precompile that would verify ZK-EVM proofs as part of Ethereum itself. Such a system in place enables trustless interoperability and composability while allowing L2s flexibility in extending functionality.

He said that while a permissionless ecosystem will inevitably include systems with weaker or trust-dependent guarantees, Ethereum’s responsibility is to make those guarantees clear and continue strengthening the base protocol.

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Crypto World

Bitcoin Halts Gains as US-Iran War, Hormuz Closure Make a Comeback

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Bitcoin Halts Gains as US-Iran War, Hormuz Closure Make a Comeback

Bitcoin foreshadows fresh market mayhem as it appears that the US-Iran war has returned, including the closure of the Strait of Hormuz oil route.

Bitcoin (BTC) sought to protect $75,000 into Sunday’s weekly close as crypto surfed fresh uncertainty over the US-Iran war.

Key points:

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  • Bitcoin price action sinks from ten-week highs amid fears that the US-Iran war has returned in full force.

  • Iran closes the Strait of Hormuz, bringing back the risk of an oil-price surge.

  • BTC price action faces ongoing resistance at a 21-week trend line into the weekly close.

Bitcoin abandons highs as US-Iran war fears return

Data from TradingView showed BTC price pressure reentering after a trip to ten-week highs of $78,400 on Friday.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Mixed signals from US and Iranian sources characterized the weekend, with an assumed ceasefire and mutual agreements between the two sides now seemingly undone.

Among the latest developments was the repeat closure of the Strait of Hormuz, putting the focus on oil futures on the day. News of a ceasefire had sent WTI crude below $80 per barrel for the first time since March 10.

“We expect an eventful Sunday ahead,” trading resource The Kobeissi Letter summarized in ongoing analysis on X.

CFDs on WTI crude oil one-day chart. Source: Cointelegraph/TradingView

As BTC/USD circled local highs, and sentiment with it, market participants stayed cautious. Trading resource Material Indicators noted that the entire market mood could flip on relatively little input, such as a social media post.

“Sentiment is overwhelmingly bullish at the moment, but that could change with one Tweet in the coming days. Know your invalidations,” it told X followers.

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Data from CoinGlass showed long positions coming under fire during the BTC price retracement, with total crypto liquidations at $260 million over the past 24 hours.

Crypto seven-day liquidation history (screenshot). Source: CoinGlass

BTC price capped by resistance trend line

Continuing, trader Daan Crypto Trades eyed a potential gap in CME Group’s Bitcoin futures market opening as a result of the weekend comedown.

Related: Bitcoin can grow ‘probably a lot bigger’ than $30T+ gold market — Analysis

As Cointelegraph reported, such gaps often act as short-term price magnets when the new week begins.

“It’s going to be interesting to see the futures open today and how $OIL will react to the recent headlines regarding the strait,” he added.

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BTC/USDT 15-minute chart. Source: Daan Crypto Trades/X

Looking at the weekly close, trader and analyst Rekt Capital placed importance on Bitcoin’s 21-week exponential moving average (EMA) near $78,900.

“Bitcoin is rejecting from the 21-week EMA (green),” he observed alongside the weekly chart. 

“It is this rejection that could force a post-breakout retest of the top of the Double Bottom (~$73k) next week, provided Bitcoin Weekly Closes just like this.”

BTC/USD one-week chart. Source: Rekt Capital/X