Top Ethereum Layer-2 networks (L2s), including Base, Optimism, and Arbitrum, are ready to present up hundreds of thousands of dollars in revenue to make the ecosystem more interconnected.
Fragmentation has been a long-standing issue with Ethereum. There are too many L2s that don’t interact easily (if in any respect) and are overly centralized.
‘Based’ and ‘native’ rollups could fix this.
In light of the anticipated upgrade, whales have been accumulating $ETH at an unprecedented rate – over $3.8B in two days.
Let’s unpack how this news may impact the ecosystem.
The Cost of Security: What Are Based & Native Rollups?
Core Ethereum developer Justin Drake proposed the concept of based rollups in 2023. Currently, L2s like Arbitrum and Optimism depend on siloed sequencers to process transactions faster at the fee of decentralization.
Based rollups would return transaction processing to the Ethereum mainnet, which implies they’d be validated by all nodes as an alternative of a single sequencer.
Likewise, native rollups create optimized environments inside the Ethereum base layer versus processing data off-chain and submitting results to the mainnet.
These improvements, nevertheless, would compromise transaction speeds – decentralized sequencing will increase block times to roughly 12 seconds versus its current 1 second.
On top of that, L2s would lose a considerable a part of the revenue they generate from gas fees. Still, it seems that L2 executives don’t mind these trade-offs for the sake of the ecosystem’s security and unity.
While Ethereum struggled with scalability and decentralization these days, whales are hopeful concerning the ecosystem’s future.
Up to now two days, whales bought $3.8B value of $ETH. This includes Trump’s family enterprise World Liberty Financial, which spent $20M on Saturday and brought its $ETH portfolio to $193M.
Interestingly, the Ethereum Foundation went against the trend and sold $14M value of $ETH since January 2, including $308K just a few hours ago.
Wall Street Pepe ($WEPE) Could Lead Ethereum Altcoin Bull Run
Ethereum’s upgrade may profit the worth of $ETH and all altcoins within the ecosystem.
One latest Ethereum-based project that’s been rapidly gaining traction is Wall Street Pepe ($WEPE), a worthy contender to the unique $PEPE (which recently lost ground to Trump’s official meme coin and has shown it isn’t that tough to beat).
The $WEPE presale launched in late 2024 and raised over $61M. WEPE’s relatable mission is the more than likely reason for such early success.
Whales like governments, banks, and wealthy individuals can manipulate the market to their advantage as a result of the sheer amount of funds they hold. Even worse, they might conspire with insider groups to amplify their influence.
$WEPE assembles a military of ‘thirsty degens’ – retail investors who need to level the playing field. Together, $WEPE followers will share tested trading strategies and market insights to crush the bull run.
Only 20 days remain to buy $WEPE and join the frog battalion. One $WEPE now costs $0.0003665, which is the ultimate price before the presale ends, and early adopters will claim their tokens.
The project sets the bar high with CEX listings in sight, so $WEPE might soar to $0.0013 if it maintains the momentum.
Final Remarks
Achieving efficiency, decentralization, and interoperability suddenly isn’t any easy task. Ethereum now prioritizes the latter two, and only time will tell whether it’s the appropriate decision.
Still, whale activity shows that the community approves of this strategy.
Positive developments are prone to profit the complete ecosystem, including early-stage altcoins like $WEPE.
Meanwhile, we remind you to do your due diligence. Don’t fall victim to FOMO and FUD – keep a cool head and diversify your investments.