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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InVitalik Buterin, the co-founder of Ethereum, has proposed a significant strategic shift to prioritize scaling the network's base layer (Layer 1) directly. This move marks a departure from the recent heavy reliance on Layer 2 (L2) solutions as the primary method for handling network congestion. The initiative aims to address fundamental protocol bottlenecks that L2 solutions cannot resolve independently, ensuring the long-term efficiency of the main chain. While the focus on Layer 1 is expected to enhance the core protocol's value, it may introduce short-term uncertainty for L2 projects like Arbitrum and Optimism. Analysts view this development as a bullish signal for ETH, as it strengthens the underlying infrastructure of the world's largest smart contract platform. The Ethereum Foundation and core developers are expected to align their efforts toward these protocol-level optimizations in the coming months.