Protocol Strategy

Vitalik’s Warning to L2s, ETH Sales and Falling DeFi TVL: Innovation or Consolidation? – cover image
Vitalik’s Warning to L2s, ETH Sales and Falling DeFi TVL: Innovation or Consolidation?

Vitalik Buterin’s critique of “copy‑paste” Layer‑2 projects landed as reports surfaced of ETH sales and declining DeFi TVL — a moment to reappraise what real L2 differentiation should look like. This piece parses the signals and lays out concrete priorities for builders, investors, and protocol strategists.

Published at 2026-02-05 13:07:57