Ethereum turned 11 on July 30, 2025, marking the anniversary of the Frontier genesis block launch. Since then, the network has undergone a dramatic transformation: median transaction fees on mainnet have fallen from over $2 to under $0.02, and layer-2 fees have dropped by more than 95%, according to a June 2026 academic study. But the shift to a rollup-centric world has opened new debates about how ETH retains value and whether L2s are secure enough.
The Fee Collapse
Between 2024 and early 2026, Ethereum's median transaction fee cratered. The base chain generated about $734,000 in fees and $330,000 in revenue over a recent 24-hour period, while applications on top brought in $8.56 million. Low fees are a win for adoption — they make DeFi, NFTs, and transfers accessible to more users. But they also squeeze base-layer revenue, raising questions about long-term economic sustainability.
Layer-2 Fragmentation and Security
Vitalik Buterin said in February that the original vision of rollups as unified shards “no longer makes sense” because fast EVM chains are now connected via multisig bridges. L2BEAT stages classify rollups: Stage 0 (operator-controlled), Stage 1 (limited training wheels), Stage 2 (code-based). Several prominent rollups remain at Stage 0, meaning they still rely heavily on operators. The variation in sequencer centralization, bridge security, upgrade keys, proof systems, and withdrawal mechanisms creates a fragmented landscape that worries security researchers.
The Value Accrual Debate
Buterin acknowledged that Ethereum must ensure ETH continues to accrue value in an L2-heavy world. He proposed four channels: ETH as primary collateral, rollups returning economics, support for based rollups, and meaningful blob space demand. Joseph Lubin argued for keeping base-layer fees low to drive adoption, with ETH accruing value through monetary premium, staking demand, and locked ETH. Vivek Raman pitched ETH as “productive money” — a store-of-value asset that can earn yield and serve as collateral. The debate is unresolved, and each camp has trade-offs.
Ethereum now hosts roughly $148.8 billion in stablecoins and $15.5 billion in tokenized real-world assets. The base layer may stay cheap, but the pressure is on to improve L2 security and interoperability. The community awaits concrete proposals to address the value accrual question, and L2 teams face pressure to reach Stage 2. The unresolved question: can ETH maintain its monetary premium when most activity happens off the base layer?
