TechFlow reports that Justin Bons, founder of Cyber Capital, made comments on social media last night claiming Ethereum is in decline and Layer 2 (L2) networks are "dancing on its grave."
Bons pointed out that since the implementation of EIP-4844 (Proto-Danksharding), Ethereum's fee revenue has dropped significantly and can no longer keep up with inflation.
Meanwhile, usage and fee income for L2 networks have reached record highs, and these networks are lobbying to maintain low capacity on Ethereum. Bons describes this as a "parasitic relationship," arguing that L2s are effectively stealing Ethereum's users and fees by masquerading as being "the same as Ethereum" to attract users.
Bons predicts that L2 networks will eventually migrate or become independent Layer 1s, while Ethereum gradually declines. He criticizes Ethereum's leadership for sacrificing Ethereum’s own interests in favor of L2s, calling it a sign of systemic governance failure. Bons warns that if Ethereum were to achieve a breakthrough in scaling its Layer 1 in the future, it could trigger a collapse in token and equity prices across all L2 networks—giving L2s strong incentives to block Ethereum's expansion.
