Ethereum’s Pectra upgrade and Solana’s recent congestion have reignited debate around blockchain scalability, spotlighting Layer 2 as a key solution. While Ethereum enhances support for L2 networks, Solaxy—a new Solana-based Layer 2—gains traction for offering a more responsive, resilient transaction framework.
On May 7, 2025, Ethereum activated its Pectra upgrade – a significant milestone following the Dencun update in 2024. Designed to improve scalability, flexibility, and user experience, Pectra consolidates the Prague and Electra proposals into one cohesive rollout. This upgrade is not just an internal efficiency tweak; it significantly enhances Ethereum’s ability to support Layer 2 scaling solutions, reinforcing the network’s shift toward off-chain computation.
Pectra introduces features like account abstraction, allowing users to pay gas fees in ERC-20 tokens such as USDC or DAI. It also doubles Ethereum’s Layer 2 blob capacity and increases the validator staking limit from 32 ETH to 2,048 ETH. These changes simplify staking and reduce congestion, allowing faster, cheaper and more scalable activity across Layer 2 ecosystems.
Other technical enhancements include Verkle Trees, a data structure upgrade that reduces storage requirements, and PeerDAS, a data sampling protocol that allows Ethereum nodes to verify information more efficiently. Together, these additions aim to boost the viability of Layer 2 solutions while preserving Ethereum’s decentralised ethos.
Ethereum co-founder Vitalik Buterin has been vocal about the network’s economic transition toward Layer 2 dominance, urging projects to align with Ethereum’s long-term value capture mechanisms. Buterin framed this as a wartime-level priority, highlighting the urgency of standardising cross-chain operations and resisting centralisation across scaling layers.
The Layer 2 Design: Why It Matters for Crypto Innovation
Layer 2 solutions operate as independent networks built atop Layer 1 blockchains like Ethereum or Bitcoin. By offloading transaction activity to these secondary networks and batching the results for submission to the base chain, Layer 2s dramatically increase throughput while reducing fees.
This architecture is fundamental in periods of high demand, where Layer 1 networks often face congestion and soaring costs. For Bitcoin, the Lightning Network was an early Layer 2 example, designed to process transactions through persistent payment channels. Ethereum, on the other hand, has embraced rollups like Arbitrum, which group and compress many transactions before final submission to the main chain.
Ethereum’s Merge in 2022 and subsequent upgrades like Dencun and Pectra show that Layer 1 and Layer 2 are not mutually exclusive but complementary. Layer 1 serves as the base layer for security and settlement, while Layer 2 handles transaction throughput and speed. As user adoption grows, the role of Layer 2 networks in sustaining crypto innovation is becoming non-negotiable.
Solaxy: Solana’s Layer 2 Contender Steps Into the Spotlight
As Ethereum doubles down on Layer 2 readiness, Solana faces a different kind of challenge. Its base-layer blockchain boasts high throughput – around 6,500 transactions per second, but has historically suffered from congestion and transaction failures during peak usage. That’s where Solaxy enters the conversation.
Solaxy is building the first Layer 2 blockchain for Solana, designed to alleviate pressure on the main chain by taking over part of its computational workload. With ambitions of achieving 10,000 transactions per second, Solaxy aims to deliver faster execution, reduced fees and more consistent reliability – especially critical in a market where user activity is on the rise.
The project has already raised over $41 million in presale funding and completed 1 million successful transactions on its test network. Coinsult's smart contract audits have validated the security of its infrastructure, further boosting investor confidence. The presale ends in just under three weeks and marks one of the largest in Solana’s history.
FIND OUT MORE ABOUT SOLANA’S L2 SOLUTION SOLAXY
Solaxy’s utility doesn’t end with Layer 2 scaling. It’s also building Igniter Protocol, a launchpad for creating new tokens in a low-cost, high-speed environment. Inspired by Solana’s Pump. Fun, Igniter will allow users to mint and deploy tokens with minimal technical knowledge. This ecosystem-level expansion has the potential to attract developers and retail users alike, especially in the meme coin and micro-cap trading space.
Layer 2 as a Strategic Lever for Blockchain Platforms
The market’s appetite for Layer 2 solutions has shifted from experimentation to expectation. Ethereum’s latest upgrades and Solana’s traffic jams underscore the same reality: base-layer blockchains alone cannot absorb the growing transaction demand without compromising on speed or decentralisation.
Solaxy is positioning itself as the solution for a specific Layer 1 weakness – Solana’s scalability under strain. While Ethereum’s Layer 2 ecosystem is populated with rollups and data shards, Solana has not yet developed a mature Layer 2 strategy. Solaxy could fill that vacuum, enabling new dApps, financial services and token launches previously constrained by Solana’s core limitations.
This aligns with the broader Layer 2 thesis. Whether through rollups, sidechains, or hybrid consensus models, Layer 2 solutions are becoming the default path for scaling crypto ecosystems. Ethereum’s Pectra upgrade lays the groundwork for such models by standardising tools, expanding bandwidth and simplifying user interactions.
Institutional Attention Meets Ecosystem-Driven Growth
Both Ethereum and Solana have benefitted from institutional attention in 2025. With Bitcoin and Ethereum reaching new all-time highs and capital rotating into alternative chains, Layer 2 networks are poised to ride this momentum. Projects like Solaxy, which combine infrastructure scaling with developer-focused tools, are uniquely positioned to grow in tandem with Layer 1 platforms.
The $41 million raised by Solaxy is not just a presale success – it’s a signal that the market recognises Layer 2 as a critical pillar of crypto’s next growth phase. As Ethereum’s upgrades unlock more capabilities and Solana’s limitations become more pronounced, solutions like Solaxy could become the backbone of a faster, cheaper and more resilient blockchain ecosystem.
Layer 2 Is No Longer Optional
The evolution of blockchain technology is entering a new phase – one defined not by single-chain maximalism but by network interoperability, user experience and scalability. Ethereum’s Pectra upgrade is a technical testament to the power of Layer 2. Meanwhile, Solaxy’s rise suggests that Layer 2 is not just an Ethereum story but a universal blueprint for blockchain scalability.
Solaxy may still be in presale, but its timing, paired with Ethereum’s scaling narrative, places it squarely in the discussion around crypto innovation. As demand accelerates, both users and developers are searching for platforms that can handle real-world load. Layer 2 is that platform layer and Solaxy could be the next big beneficiary.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Always conduct your own research (DYOR) before investing in any cryptocurrency projects.
