COINTELEGRAPH · 2026-11-12 13:30 UTC

Are Alt-L1s over? Security, costs drive smaller chains to Ethereum

Zilliqa announced plans to abandon its standalone Layer 1 and become an Ethereum-based Layer 2, citing insufficient usage, dried-up funding and liquidity, and the cost of securing a chain alone. The article says independent L1s must fund execution, consensus, data availability, settlement and token incentives for staking, while L2s only need to maintain execution. Bitwise's Max Shannon says the top ten chains are financially sustainable, while chains ranked 11th onward collectively earned under $1 million in annual fees; Gnosis is pursuing a transition to an Ethereum Economic Zone targeted…

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