Back to Ethereum: How Synthetix, Ronin and Celo saw the lig

Ethereum’s Evolving Role: L1 Renaissance and L2 Convergence

Ethereum is reasserting its position as a central hub for high-value decentralized finance (DeFi). The network boasts a Total Value Locked (TVL) significantly larger than its competitors. This strong foundation, coupled with the ongoing development of Layer 2 (L2) scaling solutions, is shaping the future of blockchain projects.

High-Value DeFi Projects Return to Ethereum L1

Several prominent DeFi projects are demonstrating renewed commitment to the Ethereum Layer 1 (L1) blockchain. Projects like Synthetix and Aave, known for their substantial contributions to the DeFi ecosystem, continue to thrive on the mainnet. This underscores the enduring appeal and security of Ethereum’s foundational layer for critical financial applications.

Alt-L1s and L2s Embrace the Ethereum Ecosystem

A notable trend involves independent Layer 1 blockchains transitioning to become Layer 2 solutions within the Ethereum ecosystem. This strategic move allows these projects to leverage Ethereum’s robust security, developer community, and network effects, while simultaneously benefiting from the cost efficiencies and scalability offered by L2 technology.

For instance, the mobile payments network Celo made a significant shift earlier this year, moving from its own validator network to an Ethereum L2. This transition has reportedly led to considerable operational cost savings, estimated at several million dollars annually.

Similarly, Ronin, a blockchain initially developed for the popular game Axie Infinity, has announced plans to integrate with Ethereum as an L2 by early 2026. This move follows a period where network congestion on the Ethereum mainnet previously necessitated Ronin’s independent operation. Sky Mavis co-founder Jeffrey Zirlin commented on Ethereum’s progress in scaling, suggesting the network’s roadmap has largely delivered on its promises.

This convergence highlights the increasing recognition of Ethereum’s comprehensive roadmap, which aims to provide both a secure base layer for high-value transactions and scalable solutions for broader adoption.