Ethereum Layer 2 Experiences Decrease in Activity Following Airdrop

Layer 1 Growth vs. Layer 2 Decline: Ethereum's Layer 1 network saw a 25% increase in active addresses and a 20% rise in transaction volume over the past year, while Layer 2 networks like Ronin and ZKsync experienced significant declines, including a 90% drop in ZKsync's trading volume post-airdrop.

Market Dynamics and Investor Sentiment: The contrasting performance between Ethereum's main network and Layer 2 solutions reflects shifting market dynamics, leading to cautious investor sentiment and discussions about the long-term sustainability of Layer 2 technologies.

Importance of Layer 2 Solutions: Despite the challenges faced by Layer 2 networks, Ethereum co-founder Vitalik Buterin emphasized their crucial role in Ethereum's future growth, indicating that strategic advancements may stabilize network usage.

Current Market Status: Ethereum's market cap stands at approximately $356.62 billion, with a 24-hour trading volume of $23.46 billion, although ETH has seen an 11.20% price drop over the past week amidst fluctuating market conditions.