According to @alice_und_bob, Layer 2 networks have built a bad reputation and the author shared a link to reasons supporting that view, highlighting reputational risks that traders should review when evaluating L2-related tokens and ecosystems. Source: https://twitter.com/alice_und_bob/status/1955412890615414785

According to @alice_und_bob, the Ethereum ecosystem is stuck in a bad meta with excessive diversity across bridges, interoperability, sequencing, proving, exits, and data availability, source: @alice_und_bob on X on August 11, 2025. According to @alice_und_bob, this fragmentation is reinforced by many venture firms funding many teams that repeatedly reinvent these core components, source: @alice_und_bob on X on August 11, 2025. Based on @alice_und_bob's view, traders focused on ETH and L2 tokens can monitor standardization efforts, consolidation signals, and interoperability roadmaps across rollups and bridges as potential catalysts for sentiment shifts, source: @alice_und_bob on X on August 11, 2025.

According to Crypto Rover, significant capital is pouring into Ethereum ($ETH) and Layer 2 (L2) solutions, indicating increased investor confidence and heightened trading activity in these segments of the crypto market (source: Crypto Rover, Twitter, June 8, 2025). This trend suggests that traders are positioning for potential price appreciation and network growth, making $ETH and leading L2 tokens like Arbitrum and Optimism key assets to watch for short-term volatility and long-term upside. The influx of funds into these assets is expected to drive higher liquidity and trading volumes across major crypto exchanges.

According to Flood (@ThinkingUSD) on Twitter, investing in L1 and L2 tokens implies a belief that blockchain technology will not evolve significantly and that current transaction solutions are already optimal. Flood argues that this bet also assumes user-facing front ends will remain loyal to a specific blockchain, rather than seeking opportunities across different chains. For crypto traders, this highlights the risk that advancing technology or shifting user interfaces could erode the value proposition of existing L1 and L2 tokens, potentially affecting token prices and trading strategies (source: Flood, Twitter, May 30, 2025).

According to Vitalik Buterin, he plans to donate all proceeds from his Layer 2 (L2) tokens and other project tokens, including those that are not yet liquid. The donations will either support public goods within the Ethereum ecosystem or go towards broader charitable causes, such as biomedical research and development. Additionally, Buterin stated that he does not intend to invest in L2s or other similar projects.