According to Vitalik Buterin, increasing Layer 1 (L1) gas limits on Ethereum remains crucial even in an ecosystem dominated by Layer 2 (L2) solutions. Buterin emphasizes that higher L1 gas limits can improve transaction throughput and reduce congestion, benefiting traders by ensuring faster and more reliable transaction processing. He also notes that this can enhance the overall scalability of the Ethereum network, which is vital for maintaining a competitive edge in the cryptocurrency market (source: Vitalik Buterin on Twitter).

According to Vitalik Buterin, Ethereum's Layer 1 is undergoing significant scaling improvements, including the development of EIP-4444 for history expiry, advancements in statelessness with a new binary tree EIP, and client efficiency upgrades. These enhancements aim to support higher L1 gas limits while maintaining decentralization.