How Do Layer-1 and Layer-2 Blockchains Compete for Growth?

[cryptoenthusiast]

A key advanced FAQ in 2025: Where should capital and developers go — L1 or L2?

L1 examples: Solana, Near, and BNB Chain compete on throughput, unique consensus models, and ecosystem incentives.

L2 examples: Base and Arbitrum grow by piggybacking on Ethereum’s security while offering $0.01–$0.05 fees.

Trade-offs:

L1s often compromise decentralization for scalability.

L2s depend on Ethereum, making them vulnerable to mainnet congestion and regulatory bottlenecks.

Advanced strategy: Instead of picking one camp, track interoperability upgrades. For instance, Polygon’s Heimdall v2 and Arbitrum’s Stylus give devs lower fees and cross-chain access — bridging the L1 vs. L2 divide.

[jacson4]

The real alpha isn’t L1 vs L2 — it’s watching interoperability upgrades. Polygon Heimdall v2 + Arbitrum Stylus could change the game.

[EmTeam]

L1s sacrifice decentralization, L2s depend on ETH… the winners will be those that bridge the gap with seamless cross-chain infra.