Scroll co-founder Ye Zhang Calls Layer-2 Fees a ‘Toxic’ Idea: Is Ethereum’s Future at Risk?

Ye Zhang, co-founder of the Ethereum Layer-2 scaling solution Scroll, has strongly criticized proposals to impose fees on Layer-2 networks, calling the idea “toxic”. In a series of posts on X, Zhang argued that such tariffs prioritize short-term revenue over the ecosystem’s foundational values and scalability. He also added that such developments may be counterintuitive for Ethereum’s future. 

‘Layer-2 Fees Contradict Decentralization’, says Zhang

“Ethereum doesn’t need to extract – it needs to enable,” Zhang stated in one post. He emphasized that Ethereum’s strength lies in becoming a central asset across several Layer-2 rollups rather than levying fees. According to the Scroll co-founder, taxing Layer-2 networks portrays corporate behavior, which contradicts Ethereum’s decentralized values. He warned that such a move could push developers toward alternative data availability layers, reducing Ethereum’s importance in the blockchain industry.

5/6 Two futures:
• ETH becomes the SoV + economic hub for 1000 flourishing rollups (ETH is the major assets in those ecosystems)
• ETH gets greedy, taxes L2s, L2s go alt-DA, Ethereum loses relevance while still failing to scale, ETH fails

Only one of those ends well.

— Ye Zhang 📜 (@yezhang1998) April 2, 2025

‘ETH Still the Main Asset on Layer-2 Networks’ 

Zhang further compared Ethereum to Solana by adding, “Solana is vertically integrated. SOL is the main asset in one system, tight control, but limited scalability. ETH, on the other hand, is already the dominant asset on Base, Arbitrum, Optimism, zkSync, Scroll, and even where it’s not the gas token, it’s still the major pair on DEX.” He highlighted that Ethereum’s real growth lies in being an asset hub for thousands of smaller rollup-based networks.

Ethereum’s Future Lies in Layer-2 Rollups

He outlined two potential paths for Ethereum in the future. In one scenario, he predicted Ethereum would evolve into a trusted store of value and a central hub for Layer-2 networks. “A thousand scalable rollups with ETH as the center> any monolithic chain,” he wrote. On the other hand, he stated that imposing tariffs on these rollups could hinder Ethereum’s own growth and drive developers away, weakening Ethereum’s relevance/

To ensure success in Ethereum’s future, Zhang implored the community to focus on scaling and improving the data availability infrastructure. He strongly advocated for a 1000x improvement in blob capacity and the development of shared tools like cross-rollup bridges. “ETH wins by being the gravity, not the toll booth,” he concluded. Ye Zhang’s latest roadmap for ETH growth suggests bolstering Layer-2 networks. But in the recent past, this has led to reduced activity on the Layer-1 itself. Let us take a look at the latest ETH price prediction to see how the coin is faring on the charts.

ETH Price Analysis of the Last 24 Hours: Ethereum Returned to $1900+ Range, Only for a While

ETH began trading at $1906 yesterday. The coin worked in a downtrend, thanks to a death cross late on the previous day. By 5:00 UTC, ETH had dipped to $1,880. With a slight death cross at 4:50, ETH dipped further to $1,854, finding strong support. The RSI read oversold conditions at that point, corroborating a trend reversal. ETH soon began to ascend as an extended golden cross formed, climbing all the way up to $1,886. The coin faced strict resistance at $1,890.

As buying pressure lost steam, ETH faced a price correction, finding new support at $1,860. The coin went on to test the resistance once again, but failed. However, the 13:30 golden cross sparked upward movement and widened an hour later, leading ETH beyond the resistance to $1,915. 

Chart 1; analyzed by raodevansh18, published on TradingView, April 3, 2025

Overbought conditions were observed once again, and ETH stabilized around the $1,900 mark. At 20:10 UTC, rapid action ensued on the MACD indicator, as ETH spiked up to its intraday high of $1,956 before going on a deep plunge to $1,784 by 23:20 UTC. Since then, Ethereum went on an upward trend and consolidated around $1,825, with a $1,820 support. 

ETH Price Prediction: Can ETH Touch $1,900 Today?

With concerns looming over Ethereum’s future, its price action has also failed to impress investors. Its recent dip after the market crash has had the coin struggling to find its way up again. For today, ETH has strong support at $1,820 for upward growth. But with a death cross forming as of now, it looks set to abandon it before upward movement. Any upward movement should occur later in the day, with little chance of a $1,900 valuation today.