Are Alt-L1s over? Security, costs drive smaller chains to Ethereum

What happened: Zilliqa plans to move from its standalone Layer 1 to an Ethereum-based Layer 2, joining Gnosis and Ronin in shifting toward Ethereum. Zilliqa said its L1 "hasn't worked" after nine years. Key numbers: Zilliqa ran its own L1 for nine years. Why it matters: Bitwise analyst Max Shannon says L2s need only maintain execution and do not necessarily need a token, making them a more attractive financial and operational proposition. Matter Labs CEO Alex Gluchowski says sharing Ethereum's security gives teams more room to focus on users.

Zilliqa plans to move from its standalone Layer 1 to an Ethereum-based Layer 2, joining Gnosis and Ronin in shifting toward Ethereum. Zilliqa said its L1 "hasn't worked" after nine years.

Bitwise analyst Max Shannon says L2s need only maintain execution and do not necessarily need a token, making them a more attractive financial and operational proposition. Matter Labs CEO Alex Gluchowski says sharing Ethereum's security gives teams more room to focus on users.