Zilliqa announced plans to leave its independent Layer 1 blockchain and become an Ethereum-based Layer 2. It said usage had not reached the level needed to support a standalone chain, and cited reduced funding and liquidity and the demands of securing the network. The move is planned, not completed.
Gnosis is also working to shift Gnosis Chain to an Ethereum-based network, targeting spring 2027. Ronin completed a move to Ethereum as a Layer 2 in May. Analyst Max Shannon cautioned that moving to a Layer 2 does not automatically make a network profitable, and said there is no clear conclusion to the Layer 1 versus Layer 2 debate.
