Recently, I’ve noticed an interesting trend — Ethereum L1 is experiencing a strong recovery after being overshadowed by Layer 2 solutions for some time. Notably, major DeFi players like Synthetix and Aave are ramping up their activity on the mainnet again.

Kain Warwick, the founder of Synthetix, has repeatedly emphasized that L1 remains the backbone of decentralized finance. These longstanding DeFi protocols hold enormous liquidity on the base layer, and that matters — although Layer 2 solutions are cheaper and faster, L1 still provides security and stability.

But that’s not the whole story. What’s truly fascinating is that some independent blockchains are reversing course. Ronin, Celo, and Phala have announced plans to become Ethereum Layer 2s instead of maintaining their own chains. Why? Because they realize that building on Ethereum’s robust L1 platform is more advantageous than competing against it.

This shift reflects a profound change in blockchain project strategies. Instead of competing, they choose to leverage Ethereum’s security and massive liquidity. The modular architecture of L1 allows Layer 2s to develop without fragmenting the ecosystem.

As L2 solutions become more diverse, Ethereum L1’s role as the foundational payment layer becomes even more solidified. DeFi leaders choosing to stay and expand on L1 demonstrate their confidence in the network’s long-term vision.

So, what’s the big picture? Ethereum L1 isn’t an outdated layer — it’s the security foundation that the entire crypto space is built upon. With major DeFi players anchoring liquidity on L1 and L2s expanding reach, Ethereum continues to assert its dominance in Web3.