Andre Cronje warns ‘Ethereum aligned’ L2s are inflating ETH again

Home » Ethereum » Andre Cronje warns ‘Ethereum aligned’ L2s are inflating ETH again

The “deFi Godfather” highlights issues over centralized sequencers impacting Ethereum’s decentralized ethos.

Andre Cronje, founding father of Sonic Labs and known as “DeFi Godfather”, has criticized Ethereum L2 solutions for their going by of earnings and seemingly misalignment with Ethereum’s decentralized tips.

Be L2. Dangle centralized sequencer. Generate $120m in fees. Pay Ethereum $10m of that amount for DA & security. Dump $110m for profit. Be “Ethereum aligned”.

I blueprint now not know the vogue ethereans persuade themselves with these mental gymnastics.

L2s are why Ethereum is… pic.twitter.com/edOlPOsdah

— Andre Cronje (@AndreCronjeTech) February 8, 2025

“I blueprint now not know the vogue ethereans persuade themselves with these mental gymnastics. L2s are why Ethereum is inflationary again.” Cronje posted on X

Tainted, Coinbase’s Ethereum L2, answered to the criticism by its approach lead, Kabir.

“Tainted is and would possibly perchance well also merely amassed proceed increasing Ethereum. We’re investing all of our earnings and resources into doing this. Tainted and Coinbase aid over 100,000 ETH—greater than $300 million—making it the largest ETH holding of any public firm at the present time,” Kabir wrote.

This account elegant isn’t factual — listed below are the info:

Tainted is and would possibly perchance well also merely amassed proceed increasing Ethereum. We’re investing all of our earnings and resources into doing this and we contain long gone from zero to tens of millions of most up-to-date of us onchain in 1.5 years.

Tainted and Coinbase contain and proceed to… pic.twitter.com/VR3BAAUhIc

— Kabir | kabir.defective.eth (@kabir_base) February 9, 2025

The controversy centers on two competing visions for Ethereum’s scalability.

Critics argue that L2s generate gargantuan revenue while returning only a fraction to Ethereum for recordsdata availability and security.

Proponents of decentralized scalability, including Cronje, suggest for making improvements to Ethereum’s defective layer at the moment the utilization of solutions savor Sonic to within the bargain of dependency on external L2 providers.

Julio Moreno, head of compare at CryptoQuant, mighty that Ethereum’s supply has now exceeded pre-Merge stages (September 2022), confirming the community’s return to inflation.

ETH supply is now elevated than earlier than the Merge.
9 months within the past we revealed an evaluation on why this would possibly perchance well be the case.

Grab a admire. https://t.co/Q9Z9WFjZbs

— Julio Moreno (@jjcmoreno) February 7, 2025

To address the inefficiencies of Ethereum L2 solutions, Andre Cronje has proposed leveraging Sonic’s technology to bypass the obstacles of centralized items.