Zilliqa, Gnosis, and Ronin are shifting from independent Layer 1 architectures to Ethereum-based Layer 2 solutions. Ronin completed its transition in May, while Gnosis plans to finalize its move by spring 2027 through its Ethereum Economic Zone initiative.
Maintaining an independent L1 requires funding for consensus, data availability, and validator staking. Research from Bitwise indicates that while top-tier L2 networks like those from Coinbase and Robinhood generate tens of millions in annual fees, smaller chains often struggle to reach profitability.
Data shows that L2 networks outside the top ten generate less than $1 million in annual fees collectively. Projects such as Blast have already ceased operations, highlighting the economic challenges of sustaining standalone infrastructure.
The Ethereum Economic Zone aims to enable synchronous interaction between networks, allowing smart contracts to communicate without traditional bridging. This approach seeks to leverage Ethereum's liquidity and developer ecosystem while maintaining operational control.
Despite the trend toward consolidation, some institutions continue to launch independent L1s, including Circle, Stripe, and Hyperliquid. Analysts note that the debate between L1 sovereignty and L2 efficiency remains unresolved.
