Too Many Chains? Not Even Close — Why Layer 2 Is Just Getting Started
Ethereum’s L2 Explosion Is Not a Problem — It’s the Blueprint for the Next Internet
By Igor Mandrigin, Co-founder and CTPO, Gateway.fm
Every 19 days, a new Ethereum Layer 2 (L2) is launched.
That’s not saturation — it’s a sign of demand. According to the latest Gemini Institutional Insights report, we’re witnessing a deliberate and strategic scaling of Ethereum’s capabilities, not an identity crisis. Dismissing the proliferation of L2s as redundant is akin to declaring in 1998 that the internet had too many websites. We weren’t drowning in .coms then — and we’re certainly not drowning in L2s now.
What Critics Get Wrong About Too Many L2s
Some Web3 commentators argue the ecosystem is growing too complex, too fragmented. They claim the rollout of new zkEVMs and optimistic rollups is bloating the space. But the truth is, we have too few chains, not too many. The current number of L2s is minuscule when measured against the scope of what’s coming — a multi-decade build-out of highly specialized blockchain infrastructure.
What we’re seeing is not chaos — it’s coordination, and the pushback against it reflects a misunderstanding of what L2s represent.
Why Enterprises Are Fueling L2 Growth
Let’s debunk the myth that L2 development is being led solely by DeFi enthusiasts. Instead, this infrastructure wave is being powered by global enterprises, including Deutsche Bank, game developers, and logistics giants.
Gaming activity on some Layer 2 chains surged over 20,000% in February 2025.
Industries that are traditionally risk-averse — finance, logistics, supply chain — are deploying their own L2s because public, general-purpose blockchains don’t meet their operational requirements. From predictable costs to compliance-specific privacy, businesses want tailored solutions.
Think about it: did Facebook, Netflix, and JPMorgan share space on GeoCities? No — they built their own platforms. Web3 will evolve the same way. Expect a swarm of proprietary L2s focused on serving unique verticals.
The Infrastructure Is Ready — And Getting Cheaper
Thanks to modular blockchain stacks, rollup-as-a-service platforms, and advances in zero-knowledge (ZK) proofs, spinning up an L2 is more viable than ever. As the tech matures, the cost and barrier to entry will keep falling, making it even easier for enterprises to deploy custom rollups.
Image placeholder: “Devs introduce Ethereum R1 layer-2 scaling solution”
Fragmentation Fears Are Overblown
Yes, the future may look like thousands of rollups and application-specific chains. But user experience won’t suffer. On the contrary, the industry is progressing toward seamless interconnection using trust-minimized bridges, shared settlement layers, and account abstraction.
Users won’t care if they’re transacting on rollup #4,318 or chain #9,072. Just like people don’t know what server their favorite app runs on, blockchain end-users will just transact and move on.
There Is No “Too Many” When It Comes to L2s
Believing there’s a saturation point for L2s is betting against scale, modularity, and sovereignty. It’s betting against Web3’s version of the cloud revolution.
This isn’t about one chain to rule them all. It’s about a network of thousands of interoperable, purpose-built chains, each serving a distinct function — from national land registries to high-frequency trading platforms.
We’re not flooded. We’re ankle-deep.
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