Ethereum strives for scalability through layer-2 (L2) solutions, but this approach may weaken Ether’s value. Binance Research recently released a report highlighting that while creating L2 networks reduces mainnet congestion and transaction fees, it may also undermine the Ethereum base layer’s strength. This evolution puts Ethereum’s dominance in decentralized exchanges at risk, particularly as competitors like Solana and BNB Smart Chain gain traction. As these dynamics unfold, Ether investors must stay alert to market shifts that could impact the value of their holdings. It is crucial to analyze how these developments affect both transaction efficiency and overall asset value. The balance between innovation and market strength remains delicate, making it imperative for investors to keep informed.