Gautham Santhosh, co-founder of Polynomial.fi, warns that Ethereum Layer 2 scaling solutions may soon reach their limits due to surging demand. Recent spikes in blob usage—crucial for Layer 2 processing—show a troubling trend where just two solutions, Coinbase's BASE and World Chain, consume 55% of all blob activity. With a record average of 21,000 blobs daily since November, the sustainability of current Layer 2 infrastructure is in question. The upcoming Pectra upgrade, which aims to increase blob capacity, is seen as a temporary fix, only extending functionality by a matter of months. Higher competition for blob space has driven base fees significantly up, causing increased costs for decentralized exchanges and impacting user transactions. As Santhosh highlights, without more blobs, many Layer 2 projects could struggle to function effectively, leading to a potential scalability crisis for Ethereum in the near future.

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