ETHEREUM L1 VS L2S

Summary from the TLDR Crypto newsletter

Layer 2 solutions are arguably draining Ethereum's fee revenue and user base, with ETH fee revenue collapsing since EIP-4844 (Proto-Danksharding) as L2s capture transaction fees while ETH inflation rises above the fee burn rate. The analysis claims L2s fragment the ecosystem into competing camps, breaking liquidity and composability without realistic reunification possibilities, while pushing users toward centralized L2s where the top 20 solutions can steal funds and censor transactions despite the scaling roadmap being justified for decentralization. L2 financial dominance makes pivoting back to L1 scaling impossible since breakthrough L1 technology would crash L2 token and equity prices overnight by making them obsolete, creating a vampire attack scenario where L2s steal users and fees while pretending to be equivalent to Ethereum.