Ethereum’s Layer 2 networks are experiencing explosive growth, with recent data revealing a 62.7% weekly surge in activity. These solutions are now processing over six times more transactions than the Ethereum mainnet, a shift that underscores Ethereum’s evolution toward scalability. Layer 2 networks like Unichain and Base have been at the forefront of this growth, helping offload transaction demand from the congested mainnet and driving significant user engagement. This massive uptick in Layer 2 activity has coincided with an increase in overall Ethereum usage and fueled renewed debate in the crypto community about the true nature of this adoption wave.

Unichain, a relatively new Layer 2 chain introduced just two months ago, has emerged as the dominant player among EVM-compatible networks, boasting over 5.8 million active addresses. It now accounts for the largest share of user activity across Ethereum’s extended ecosystem. Base, Coinbase’s Layer 2 chain, has also experienced robust adoption, with 4.76 million active addresses. These numbers surpass even Ethereum’s own mainnet, which sits at just over 2 million active addresses. Such a trend suggests that Ethereum’s scaling solutions are succeeding in attracting users by offering faster, cheaper transactions.

This shift aligns with Ethereum’s broader modular strategy, where most day-to-day transactions take place on Layer 2 chains, while the mainnet serves as a secure settlement layer. As the Ethereum network becomes more interconnected, cross-chain activity is also rising, with networks like OP Mainnet taking a leading role. These developments are seen as crucial steps in Ethereum’s long-term plan to maintain its dominance without sacrificing decentralization or security.

Despite the apparent momentum, the data hasn’t convinced everyone. Some industry experts and community members have raised doubts about the legitimacy of the adoption figures. William Peets, a noted crypto analyst, questioned whether the 62.7% increase in Layer 2 activity is entirely organic. He argued that presenting such sharp growth without clarifying its origins—such as incentives, airdrops, or artificial activity—could damage the credibility of the data. Others have echoed this sentiment, pointing out that “active address” metrics are easy to manipulate and don’t necessarily reflect meaningful user engagement or real economic activity.

While the debate over metrics continues, Ethereum is also seeing renewed interest from institutional investors. Blockchain analytics platform Lookonchain recently reported that a wallet linked to Cumberland, a major trading firm, accumulated over 27,000 ETH worth approximately $50 million across multiple exchanges, including Binance and Coinbase. This accumulation points to a belief among large players that Ethereum is well-positioned for growth.

However, not all institutions are bullish. Galaxy Digital has been consistently selling ETH over the past few months. Most recently, the firm moved 23,000 ETH, worth over $42 million, to Coinbase, signaling a possible profit-taking strategy or a shift in risk appetite.

Meanwhile, Ethereum exchange-traded funds (ETFs) have started to rebound. After weeks of outflows, they saw inflows totaling over $160 million in ETH over the past two weeks, reflecting renewed investor confidence. These institutional inflows could serve as a catalyst for Ethereum’s price, which has been consolidating around the $1,800 level.

As Ethereum prepares for upcoming network upgrades and continues scaling through Layer 2 innovation, the network remains a focal point for both optimism and skepticism. Whether the recent growth in activity is a genuine sign of long-term adoption or a temporary spike driven by short-term incentives remains to be seen. However, one thing is clear: Ethereum continues to evolve, and both developers and investors are paying close attention to what happens next.