Ethereum (CRYPTO: ETH) has long been the center of decentralized finance. But as Layer 2 networks scale rapidly, the economics that once defined DeFi on Ethereum are being fundamentally reshaped.

Lower transaction fees and faster execution are drawing users away from the mainnet and into Layer 2 ecosystems. While this improves accessibility and user growth, it is also creating new pressures on protocol revenues, liquidity distribution, and long term value capture.

For investors, the shift is not just technical. It is a structural change in how value flows across the Ethereum ecosystem.

Lower Fees Are Driving A Surge In User Activity

Layer 2 networks such as Arbitrum and Optimism have…

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