Most Ethereum L2s Are Already Dying — Here’s Why

A new 21Shares outlook is sounding the alarm: most Ethereum Layer 2 networks may not survive past 2026 as activity, liquidity, and developers continue to concentrate around a small group of dominant chains.

After two years of rapid expansion, the L2 ecosystem is hitting a breaking point. While more than 50 Layer 2s are live today, nearly 90% of L2 transactions are already concentrated on just Base, Arbitrum, and Optimism — with Base alone processing over 60%. According to the report, usage across weaker L2s is down 61% since mid-2025, turning many into so-called “zombie chains.”

Several retrenchments highlight the trend: Kinto shut down, Loopring closed its wallet, and Blast’s ...