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Ethereum’s layer-2 scaling networks have come under fire after Solana co-founder Anatoly Yakovenko challenged their security and decentralisation claims. During a public discussion, he stated that the belief that L2s inherit Ethereum’s mainnet security is “erroneous.”
Are The L2s As Secure As They Say?
Yakovenko argued that many L2s depend on large and complex codebases, not to mention multi-signature systems that make them vulnerable. According to him, these networks expose user funds to unnecessary risk and create attack surfaces that are too large to monitor effectively.
He added that “five years into the L2 roadmap, wormhole ETH on Solana has the same worst-case risks as ETH on Base.”
This comment referred to how both systems face similar security limitations despite Ethereum’s position as the top blockchain for Dapps.
Are There Too Many Ethereum L2s?
The Ethereum ecosystem now has more than 129 verified layer-2 networks according to data from L2Beat. Another 29 projects remain unverified. Some industry figures believe that this number is far higher than needed.
Ethereum currently has more than 100 L2s | source: L2Beat
Binance Research also recently noted that these networks are cutting into Ethereum’s base layer revenue.
Since L2 transactions are cheaper, users often move activity away from Ethereum’s main chain. This trend reduces fees that would otherwise go to Ethereum stakers.
Solana’s Institutional Push
While Ethereum debates its scaling model, Solana continues to attract institutional attention. Fidelity Digital Assets recently added Solana to its trading platforms for both retail and institutional clients.
Fidelity has been a steady supporter of blockchain innovation from the start, and even previously launched services for Bitcoin and Ethereum ETFs.
This move shows confidence in Solana’s long-term value, especially as it sets itself up as a high-performance alternative to Ethereum.
Diverging Market Sentiment
Interestingly, market data highlights a clear split between Ethereum and Solana investors. Ethereum saw about $32 million in whale accumulation on OKX. This means that there is strong confidence among large holders.
Whales currently have diverging outlooks on Ethereum and Solana | source: X
Solana, on the other hand, faced strong token outflows. One large holder moved 515,000 SOL (worth roughly $93 million) to Binance over several months.
Analysts see this as behaviour that is worthy of caution. This is especially at a time when competition is ongoing between Solana and Ethereum.
Despite the selling pressure, Solana continues to gain traction among financial institutions. New partnerships and treasury programs are reinforcing its place as one of the leading layer-1 blockchains.
Solana Expands Staking and Treasury Growth
The Solana Company has partnered with Helius and Anchorage Digital to strengthen its staking. The network now offers a 7% native staking yield and is turning SOL into a stronger yield-bearing asset.
Meanwhile, Solmate (a Solana-based treasury firm) saw its stock jump 50% after unveiling plans for a validator centre and a round of acquisitions.
These moves show a growing trust from institutional players who see Solana as capable of supporting tokenised assets and cross-chain stablecoins.
Overall, the coming months will likely bring more focus to network security and efficiency, not to mention user trust.
