According to @jessepollak, Ethereum Layer 2 solutions have doubled their transaction capacity over the past four months, with a clear roadmap for a further 10-20x increase by the end of the year (Source: Twitter, May 7, 2025). This substantial scaling progress is likely to reduce network congestion and lower transaction fees, making Ethereum-based applications more attractive to traders and investors. The anticipated capacity boost could drive increased trading volumes and liquidity across DeFi and NFT platforms, directly impacting ETH price action and broader crypto market sentiment.

According to Vitalik Buterin, native rollups offer a promising approach in cryptocurrency network scaling, particularly through their flexible design which allows for 'almost-EVM' compatibility. This design means that developers only need to provide their own prover for any deviations, potentially lowering the barriers for integration and encouraging wider adoption. This is crucial for traders as it could lead to increased network efficiency and lower transaction costs, impacting trading strategies and liquidity. Source: @VitalikButerin