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The co-founder of a popular cryptocurrency took a swipe at Layer-2 cryptos, claiming that these rollups are only redundant and make blockchain scaling more complicated.

Anatoly Yakovenko, co-founder of the Solana network, argued that Layer-1 solutions are sufficient without Layer-2 tokens which do not offer genuine, long-term benefits.

Layer-2 Not Needed?

Yakovenko said in an X post that Layer-2 cryptocurrencies are unnecessary and only add unnecessary complexity to blockchain scaling.

“There is no reason to build an L2,” Yakovenko said in a post, which is the Solana co-founder’s response to @ripdoteth, who claimed that there is no reason to build a Layer-1.

The crypto co-founder argued that Layer-1 solutions, like the Solana network, can already offer efficient, cheap, and secure scaling solutions. Hence, he said that Layer-2 tokens are only providing redundancy.

There is no reason to build an L2.

L1s can be faster, cheaper, and more secure.

They aren’t slowed down by a glacially moving L1 data availability stack, or have to compromise security with complex fraud proofs and upgrade multisigs. https://t.co/Ov3YAfz9U4

— toly 🇺🇸 (@aeyakovenko) March 23, 2025

“They aren’t slowed down by a glacially moving L1 data availability stack, or have to compromise security with complex fraud proofs and upgrade multisigs,” he explained.

He added that Solana does not encounter these kinds of problems since it has separate execution and data layers on an efficient base layer.

Storage Issues

Yakovenko described Solana’s data generation as tiny at 80 terabytes annually, saying that Layer-1 cannot scale because they are hindered by storage.

“Solana generates a measly amount of data. Like 80TB per year so far. It’s just not enough data to build a business around, but too much for any individual to easily store,” Yakovenko said.

Solana market cap currently at $71.5 billion. Chart: TradingView.com

The crypto co-founder told users not to create baseless Layer-2 cryptocurrencies, saying early this month, “You can skip creating a valueless L2 and just launch a token.”

When asked about Solana’s plan on offloading unused storage, he responded that the ledger is going on “filecoin or whatever decentralized storage provider wants it.”

Some Do Not Agree

Several crypto investors disagree with Yakovenko, arguing that Layer-2 solutions are necessary.

“L1s can’t scale to accommodate 8 billion global users. L2s are needed no matter which chain you see leading the way. And they can be faster, cheaper, more secure, interoperable, specialized to use case, localized or decentralized, evolve fast or ossify,” @RuzhyoX commented on Yakovenko’s post.

The Solana co-founder replied that Layer-1 can accommodate 8 billion users, saying, “8 billion * 3 txs per day is sub 300k tps. That fits in under 1gbps of block throughput for 400 byte txs.”

He argued that Solana’s design allows it to compete with every Ethereum Layer-2 solution directly, which is not the case with Ethereum itself. “There is no point to multiple L2s … if a single L2 can handle parallel execution, then it can use up all the blobspace and run every use case.”

Featured image from Gemini Imagen, chart from TradingView

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Analysts say Shiba Inu price is poised for a rally in the coming days that will see the memecoin rise by double-digit percentages. While on-chain and technicals point to an incoming rally, SHIB has to break through a key resistance level.

Shiba Inu Price To Rally By As Much As 20%

Pseudonymous crypto analyst Satori BTC is tipping Shiba Inu (SHIB) to spike by 20% in the near future. The analyst hinges his prediction on technicals, noting that the memecoin is tying its bootlaces for a strong rally.

According to a post on X, Satori notes that a bottoming pattern for Shiba Inu is in the offing, signaling the end of the downtrend. However, Satori BTC notes that confirmation of the bottoming pattern will be Shiba Inu price breaking through a key resistance level.

Shiba Inu price has tested the $0.0000134 resistance level multiple times with a breakthrough touted to trigger an impressive rally.  For Satori BTC, a breach through the level will lead to a 20% rally for SHIB on conservative estimates.

“If SHIB can break through the resistance in the next move, it will confirm a bottoming pattern (H&S),” said Satori BTC. “This could lead to at least a 20% price increase.”

A mysterious 1,000,000 SHIB burn is stoking embers of a rally in the coming days for the memecoin.

On-chain Indicators Are Leaning Toward A Rally

Apart from technicals pointing to an incoming rally, on-chain indicators are painting a similar picture of the memecoin. Shibarium’s total volume locked has reached its highest peak since January accentuating an increasing network activity.

A wave of token burns has triggered speculation of an impending supply crunch for SHIB, a marker for higher prices. There is rising optimism that SHIB can reach 1 cent, but the meteoric rise will be underscored by “aggressive token burns” and heavy institutional adoption.

For now, bullish sentiment for SHIB is rising with whales snagging tokens to bolster their holdings. However, investors are putting away the pessimism from SHIB’s death cross pattern that threatened to sink prices to new lows.

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Aliyu Pokima

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.