Vitalik Buterin Makes Significant Clarifications on the Role of L2s in Ethereum's Ecosystem

Vitalik Buterin has publicly revised his stance on Ethereum's Layer 2 (L2) scaling strategy, stating that the base layer is scaling faster than anticipated. The co-founder of Ethereum emphasized that many L2s have not achieved the decentralization and security once expected, leading to a reevaluation of their role in the ecosystem according to a recent analysis.

Buterin's comments come after ENS Labs announced it would abandon its Namechain L2 project and instead deploy ENSv2 entirely on the Ethereum mainnet. The decision followed a 99% reduction in gas costs for ENS registration over the past year, aligning with Ethereum's increased gas limits.

The shift reflects broader uncertainty about the future of L2s. Many in the Ethereum community had long assumed that L2s would serve as branded shards, inheriting Ethereum's security while offering scalability. Buterin now argues that this model no longer fits the evolving network.

Why Did This Happen?

Ethereum's base layer has scaled faster than most experts predicted, with gas limits increasing from 30M to 60M in 2025. This growth has reduced the need for app-specific L2s to manage high fees. ENS Labs acknowledged this in its decision to move ENSv2 to L1, citing the improved cost efficiency.

Buterin has also noted that L2s have struggled to meet the decentralization and trustlessness goals set for them. Many remain in Stage 1 or earlier, with centralized entities still controlling critical functions. This has led him to question whether L2s can fulfill their original promise.

What Are Analysts Watching Next?

The industry is now assessing how Buterin's revised vision will shape Ethereum's future. Analysts are particularly focused on the potential for native rollups and ZK-EVM integration. These technologies could offer tighter integration with L1 and eliminate the need for security councils or bespoke governance layers.

Buterin also suggests that L2s should focus on unique value propositions beyond scalability. This includes specialized architectures for privacy, ultra-low-latency execution, and non-financial applications. The move away from generic rollups is expected to lead to consolidation among L2 projects that fail to differentiate themselves.

ENS Labs has already begun to pivot its approach, using lessons from Namechain to enhance ENSv2's interoperability with various L2s. While the project is no longer building its own L2, the team plans to simplify user interactions and maintain strong L2 compatibility.

The broader question is whether L2s can adapt to a base layer that is scaling more effectively. If they fail to deliver unique benefits, they may become redundant. This shift could also influence regulatory and technical decisions across the ecosystem.

What Do Industry Players Say?

Some Ethereum developers have supported Buterin's comments, agreeing that application-specific chains make more sense than one-size-fits-all rollups. Others have criticized the timing and framing of his remarks, noting that the L2 ecosystem has made significant progress.

Crypto journalist Laura Shin pointed out that Buterin's statements echo criticisms that have been raised for years. She noted that parts of the Ethereum community once resisted these critiques, making Buterin's public support a significant development.

Looking ahead, Ethereum's 2026 hard forks—such as Glamsterdam and Heze-Bogota—are expected to further expand the base layer's capacity. This could increase pressure on L2s to either innovate or consolidate.

The ENS update also highlights the practical implications of Buterin's vision. ENSv2 will offer hierarchical name control and improved accessibility, aligning with the broader trend of L2s moving toward more specialized use cases.