# The L1 vs. L2 Showdown

*Author: Bankless*
*Published: Feb 28, 2025*
*Source: https://www.bankless.com/es/read/the-l1-vs-l2-showdown*

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[![](https://storage.ghost.io/c/e4/b7/e4b77544-5a37-4f0b-8824-8440aa348476/content/images/2025/02/Frame-50572-1.png)](https://www.bankless.com/sponsor/uniswap-extension-1719068020?ref=read/are-l2s-still-worth-launching-the-l1-vs-l2-showdown&email=true)

  
The L1 vs. L2 Showdown

  
  Published on Feb 28, 2025

[
  
  View in Browser

](https://bankless.com/read/briefs)
 

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.  .  .

 
  
    
      
      NEED TO KNOW
    
    
  
  
BTC's Worst Feb. Since Mt. Gox
  

  

 

[![](https://storage.ghost.io/c/e4/b7/e4b77544-5a37-4f0b-8824-8440aa348476/content/images/2025/02/DailyBrief2-28-25.png)](https://www.bankless.com/)- 🪙 [**Bitcoin’s February Performance**](https://www.bankless.com/read/btc-on-track-for-2nd-worst-feburary)** Marks Worst Since Mt. Gox. **Hovering around $80,000, the OG crypto is reeling from weak macro sentiment and reduced institutional flows.
- 📈 [**CME Group**](https://www.bankless.com/read/cme-group-to-launch-sol-futures-on-march-17-amidst-etf-momentum)** to Launch Solana Futures on March 17.** The derivatives giant is expanding beyond Bitcoin and Ether with two contract sizes, amid growing institutional interest and pending regulatory approval.
- 🏛️ [**Ex-Congressman McHenry**](https://www.bankless.com/read/ex-congressman-mchenry-joins-ondo-as-advisor)** Joins Ondo Finance as Senior Advisor.**
The crypto advocate aims to drive regulatory clarity and tokenized-asset adoption, adding to his advisory roles with A16Z and Stripe.
📸**Daily Market Snapshot: **After knifing down to below $80,000, Bitcoin and other majors had a swift V-shaped recovery, with Solana rallying even in the face of major FTX estate unlocks.

Prices as of 5pm ET
24hr
7d

 

       ![](https://banklesspublic.b-cdn.net/cmc.png)
    

  **Crypto**
   
          $2.78T
       

  
    
    ↗ 0.4%
    
  

   
    
    ↘ 13.9%
    
  

       ![](https://banklesspublic.b-cdn.net/btc.png)
    

  **BTC**
   
          $83,819
       

  
    
    ↗ 1.2%
    
  

   
    
    ↘ 11.9%
    
  

       ![](https://banklesspublic.b-cdn.net/eth.png)
    

  **ETH**
   
          $2,206
       

  
    
    ↘ 2.5%
    
  

   
    
    ↘ 16.2%  

 

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ANALYSIS

  
  

Are L2s Still Worth Launching?

  
  
   
     
     Bankless Author: 
     
       [
       
David C](https://www.bankless.com/author/david)
     
    
 

[![](https://storage.ghost.io/c/e4/b7/e4b77544-5a37-4f0b-8824-8440aa348476/content/images/2025/02/image-10.png)](https://www.bankless.com/read/are-l2s-still-worth-launching-the-l1-vs-l2-showdown)**Over the past year, enthusiasm for Layer 2 rollups — long praised for their scalability, lower fees, and rapid launches — has significantly cooled off. **

Over [140 L2s are live](https://l2beat.com/scaling/summary), yet fewer than half exceed $10M in TVL, fueling consensus that the ecosystem is oversaturated, with Ethereum’s underperformance further dampening the mood. Meanwhile, “alt” L1s  — most notably Solana, though also Sui and Hyperliquid — have demonstrated remarkable economic potential in both fundamental growth *and* token price, prompting many to consider a fresh L1 more compelling than yet another L2.

Against this backdrop, choosing between launching or investing in an L2 or an L1 is less obvious than a year ago. Although L2s once dominated headlines, oversaturation and ETH’s underperformance continue fueling interest in L1s, whose economics, design freedom, and competitive advantages may now look more attractive.

*Let's dive in here and help you get a clearer picture of the current tradeoffs between new L1s and new L2s! *👇

[Read on Bankless](https://www.bankless.com/read/are-l2s-still-worth-launching-the-l1-vs-l2-showdown)
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