According to @scottshics, competing on “EVM + lower fees” turns L2s into commoditized blockspace rental where users and bots optimize purely for cost and performance, so durable edge must come from specialized features for specific use cases rather than cheaper fees, source: @scottshics on X. He cites Vitalik Buterin’s guidance that Ethereum L1 is scaling and L2s should pivot from being branded shards to delivering distinct value such as non-EVM privacy VMs, app-specific efficiency, extreme scaling, non-financial apps like social, identity, and AI, ultra low latency sequencing, and built-in oracles or dispute resolution, source: Vitalik Buterin on X, cited by @scottshics. Vitalik also advocates a native ZK EVM rollup precompile to enable trustless verification, stronger interoperability with Ethereum, and synchronous composability, pushing L2s to compete on unique functionality rather than fee cuts, source: Vitalik Buterin on X, cited by @scottshics. In line with this thesis, @scottshics says his team is building Kite as a purpose-built execution and settlement layer for AI agents, designed for millions of tiny actions, pay-per-call APIs, streaming micropayments, delegated authority, auditable constraints, and low-latency needs unlike traditional DeFi blocks, source: @scottshics on X. For traders, these sources imply attention should shift toward ETH and differentiated L2s that offer AI-native rails, privacy, or latency advantages, and away from undifferentiated EVM clones whose cost/performance race compresses value, source: @scottshics on X; Vitalik Buterin on X.

According to @VitalikButerin, Ethereum Layer 2 rollups are progressing toward stage 2 decentralization more slowly and with more difficulty than initially expected, and interoperability is also behind, source: @VitalikButerin. L1 is scaling at the same time, prompting renewed discussion on the ongoing role of L2s in the Ethereum ecosystem and how they fit into the roadmap, source: @VitalikButerin.

According to @Celo, Bankless called Celo the most underrated chain, and the network ranks as the #1 L2 with roughly 700K+ daily active users, citing @growthepie_eth. According to @Celo, it also leads weekly USDT active users ahead of Tron, citing @tether, with emerging-market growth attributed to MiniPay, citing @minipay. Using data cited by @Celo from @growthepie_eth and @tether, traders can monitor CELO and USDT pairs, Celo DEX volumes, and gas usage to gauge whether user leadership is translating into sustained on-chain liquidity.

According to @litecoin, the LitVM Builders Program is now open, inviting developers to deploy on Litecoin’s first trustless EVM rollup during an incentivized testnet, with details and registration available at builders.litvm.com (source: https://twitter.com/litecoin/status/2016286155981914383; https://x.com/LitecoinVM/status/2016205169059627477; https://builders.litvm.com).

According to @Celo, community members discussed founders’ plans to overhaul CELO tokenomics, agreeing that economics should better match network adoption amid all-time-high daily active users, $4.4B stablecoin volume, and real-world usage (source: @Celo). Per the Celo Community Forum post launching the CELO Tokenomics Initiative by cLabs and the Celo Foundation, the effort will explore CELO buybacks and burn mechanisms and refine long-term economics to align with an Ethereum Layer 2 facilitating millions of transactions (source: Celo Community Forum via cLabs and Celo Foundation). According to @RegenRene, Celo has become the top L2 by DAUs and a leading transport layer for USDT, with network revenue up 10x since early 2024 and MiniPay onboarding over 11M users and facilitating more than 300M stablecoin transactions (source: @RegenRene). Per the Celo Community Forum, prior changes such as the Great Celo Halvening reduced inflation to 1%, and the new initiative aims to ensure network usage benefits the community supporting this activity (source: Celo Community Forum).

According to @lightspark, Lightspark’s Rachel Malonson will take the stage at the Plan ₿ Forum in El Salvador. According to @lightspark citing Plan ₿ Forum, the session will debate Bitcoin scaling tradeoffs with a focus on Layer 2 design and Lightning connections, moderated by Roy from Breez with panelists Tiero, bit_walt, and kilrau. According to @lightspark, BTC-focused traders can monitor outputs from this panel for insights on Lightning connectivity and Layer 2 design that relate to Bitcoin payment rails and throughput.

According to @lightspark, Rachel Malonson will take the stage at Plan B Forum in El Salvador. source: @lightspark According to @PlanBElsalvador, the session will debate tradeoffs in scaling Bitcoin and dive into Layer 2 design and Lightning Network connections, moderated by @roy_breez with speakers @tierotiero, @bit_walt, and @kilrau. source: @PlanBElsalvador BTC traders tracking infrastructure developments may monitor this panel for direct commentary on Lightning and Layer 2 design choices highlighted by the organizers. source: @PlanBElsalvador

According to @LexSokolin, regulatory barriers are narrowing with MiCA in Europe, emerging US stablecoin frameworks, and crypto-friendly banking charters, giving neobanks regulatory clarity to connect with DeFi protocols (source: @LexSokolin). The author highlights potential integrations—N26 offering Compound yields, Monzo settling on Base, and Cash App adding Uniswap swaps—and argues DeFi's open source, permissionless, lower-cost infrastructure will force this integration, making protocols like Compound and Uniswap central rails to monitor for trading impact if implemented (source: @LexSokolin).

According to the source, Ethereum treasury firm SharpLink staked approximately $170 million worth of ETH on Linea, an Ethereum Layer 2 network. According to the source, the allocation constitutes a single large treasury staking transaction centered on ETH on Linea.

According to @binance, data availability is the requirement that transaction data be published so network participants can verify blocks, preventing data withholding attacks that would break security for rollups and L2s, source: Binance Academy. @binance explains that techniques such as data availability sampling and erasure coding allow light clients to check that data is available with high probability while keeping costs manageable, source: Binance Academy. @binance notes that when data availability becomes cheaper and more scalable, rollups can reduce the cost of posting data, which translates into lower L2 transaction fees, source: Binance Academy. @binance also outlines that modular architectures separate execution from data availability and that major ecosystems, including Ethereum with dedicated blob space for rollups, are evolving to improve data throughput for verifiable storage, source: Binance Academy.

According to @the_matter_labs, the company partnered with @oncreator_ to deliver ZKsync Managed Services, emphasizing operational excellence, scale with ease, and faster time to market (source: https://twitter.com/the_matter_labs/status/2001414938267652321). According to Creator, Matter Labs will build and operate the Creator Chain with rollup-as-a-service, bridging infrastructure, core chain engineering, block explorer deployment, relayer, and validator support (source: https://x.com/oncreator_/status/1999147744037089596). Creator also linked a Medium post for further details (source: https://medium.com/@oncreator_/matter-labs-to-build-and-operate-creator-chain-a-major-milestone-for-the-elastic-ecosystem-f40105fcbd3b). Neither announcement disclosed a launch date or token information (sources: https://twitter.com/the_matter_labs/status/2001414938267652321; https://x.com/oncreator_/status/1999147744037089596).

According to @Celo, Vitalik Buterin said at this year's L2 Hardfork Party that the Celo community exemplifies the best of what Ethereum and crypto has to offer (source: @Celo, Dec 17, 2025). The post is an expression of public praise and gratitude to the Celo community, without new token economics, roadmap, or listing details, making it a sentiment and visibility event for traders to note (source: @Celo, Dec 17, 2025). The timestamp of the post is Dec 17, 2025, which can be used by event-driven traders to label potential sentiment catalysts around CELO spot and CELO/ETH pairs for monitoring, while the post itself does not state any market impact (source: @Celo, Dec 17, 2025).

According to @Celo (X, Dec 17, 2025), the team states that Layer-2 (L2) architectures will win over Layer-1 (L1) alternatives. According to @Celo (X, Dec 17, 2025), Celo has focused this year on long-term 'proof' work rather than short-term narratives. For traders, monitor Celo’s official updates on proof-related deliverables and L2 alignment as potential catalysts for CELO (source: @Celo, X, Dec 17, 2025).

According to @jessepollak, a pilot enabling payments with USDC (USDC) on the Base network is underway on Shopify POS, signaling live testing of stablecoin payments at the point of sale; source: https://twitter.com/jessepollak/status/1998521257705586989. The post does not disclose merchant count, regions, fees, or rollout timeline, confirming only the pilot status and leaving scope and deployment details unspecified; source: https://twitter.com/jessepollak/status/1998521257705586989. Until additional data is released by the parties involved, no conclusions can be drawn about transaction volumes, settlement costs, or adoption impact from this announcement; source: https://twitter.com/jessepollak/status/1998521257705586989.

According to CoinMarketCap, Ethereum (ETH) exchange balances have fallen to an all-time low as more ETH moves into staking, layer 2s, and custody, with analysts noting this setup could trigger a potential supply squeeze (source: CoinMarketCap). For trading decisions, the source highlights monitoring exchange balances alongside staking and L2/custody flows as key gauges of potential supply tightness affecting near-term market dynamics (source: CoinMarketCap).

According to the source, ZKsync plans to retire its original Ethereum rollup next year, indicating a formal deprecation timeline for the legacy Layer 2 network, source: source post. For trading, the announced retirement timing introduces event risk around liquidity and bridge flows tied to the legacy ZKsync rollup, so market participants may monitor official milestones and migration notices to manage positioning, source: source post.

According to @ItsDave_ADA, he will try fanout from Hydra to Cardano L1 and says he has not seen a successful demo of this yet himself. Source: https://twitter.com/ItsDave_ADA/status/1997082035513602335 For ADA traders, the statement highlights that, to the author's knowledge as of Dec 5, 2025, a successful Hydra L1 fanout demo has not been seen by him. Source: https://twitter.com/ItsDave_ADA/status/1997082035513602335 The author did not provide a timeline or technical details in the post. Source: https://twitter.com/ItsDave_ADA/status/1997082035513602335

According to @ItsDave_ADA, a live round-robin trading loop between Broker A, Broker B and Market Maker C is running inside a single open Hydra head, source: @ItsDave_ADA. This live setup demonstrates multi-party order flow and market-making behavior executing within one Hydra head, relevant for low-latency DEX and on-chain order book designs on Cardano ADA, source: @ItsDave_ADA.

According to Celo, OP Succinct Lite is scheduled to go live on Celo Mainnet in five days from Dec 5, 2025, with a video series rolling out ahead of the Jello Hardfork, source: Celo on X, Dec 5, 2025. In the featured segment, Marek spoke with Leland from Succinct Labs about zero-knowledge and the Celo x Succinct Labs partnership, source: Celo on X, Dec 5, 2025. Celo characterizes the network as the number one L2 by daily active users in this announcement, source: Celo on X, Dec 5, 2025.

According to @jessepollak, documentation for the Base bridge is available at the GitHub repository github.com/base/bridge, giving developers and traders an authoritative link when evaluating ETH transfers to Base and related integration workflows. Source: @jessepollak; Source: GitHub github.com/base/bridge. The announcement provides the repository location but does not include additional technical specifications, timelines, or parameter changes beyond the documentation link, so traders should reference the repository directly for current details. Source: @jessepollak; Source: GitHub github.com/base/bridge.