Should Companies Launch Their Own Ethereum Layer 2 Network?

The rise of Ethereum layer 2 networks has sparked growing interest from enterprises, with over 150 already in existence. These networks promise scalability, lower costs, and access to Ethereum’s vast ecosystem. Companies like Coinbase, Kraken, and Robinhood see them as strategic tools to serve millions of retail users. However, for most firms, launching a proprietary layer 2 may not make sense.

Unlike building a new layer 1 blockchain, a layer 2 on Ethereum leverages Ethereum’s security and liquidity while allowing businesses to control fees, access, and visibility. The economics are compelling: Coinbase’s Base generated $4.9 million in fees in June 2025 while paying only $50,000 in Ethereum settlement costs. Yet, this profitability only applies to networks with high transaction volumes. Many layer 2s struggle with minimal activity, holding under $1 million in TVL and averaging less than one user transaction per second, according to L2Beat.

The question is whether a company truly needs its own network. For financial services firms processing massive volumes, the answer could be yes. But for industries like manufacturing or retail, the real value of blockchain lies in shared, open ecosystems where no single player dominates. Attempting to run a private or centralized layer 2 often duplicates the failures of earlier private blockchains.

To decide, companies should ask: Can they aggregate significant transaction volume? Is on-chain activity central to their core business? Do they offer something unique compared to existing networks? Only if the answer is yes across the board does launching a new layer 2 make sense.

For most, connecting directly to Ethereum or existing open layer 2s will be more cost-effective, private, and scalable. While the temptation of control is strong, history suggests only a handful of new layer 2 networks will thrive.