Andre Cronje warns that “Ethereum Alignment” L2 is inflated ETH again

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Andre Cronje, founder of Sonic Labs and called “Defi Godfather,” criticized Ethereum L2 Solutions for its potential inconsistency between its dealing with benefits and Ethereum's decentralized principles.

It will be L2. It has a centralized sequencer. It generates a fee of $120 million. Pay DA&Security $10 million of that amount. Throw away $110 million for profit. It will be “Ethereum Alignment.”

I don't understand how Etherians are convinced with these mental exercises.

The L2 is Ethereum… pic.twitter.com/edolposdah

– Andre Cronje (@andrecronjetech) February 8, 2025

“I don't understand how Ethereans are convincing themselves with these mental exercises. L2 is why Ethereum is inflation again.” Cronje posted on x

Coinbase's Ethereum L2 base responded to criticism through its strategy lead Kabir.

“Base continues to grow Ethereum. We invest all our revenue and resources to do this. Base and Coinbase have over 100,000 ETH, more than $300 million. Today it is the largest ETH holder of public companies,” Kabir writes.

This story is not true – here is the fact:

The base continues to grow Ethereum. We are investing all our revenue and resources to do this, and in 1.5 years, millions of new people have been on-chained.

Base and Coinbase… pic.twitter.com/vr3baauhic

– Kabir | kabir.base.eth (@kabir_base) February 9, 2025

The discussion focuses on two competing visions of Ethereum scalability.

Critics argue that L2S generates significant revenue and only returns a small portion to Ethereum for data availability and security.

Advocates of decentralized scalability, including Cronje, have advocated for directly strengthening the basic layer of Ethereum to reduce reliance on external L2 providers using solutions such as Sonic.

Julio Moreno, head of research at Cryptoquant, noted that Ethereum supply is currently above the pre-master level (September 2022), confirming the network's return to inflation.

ETH supply is higher than before the merge.
Nine months ago, I published an analysis of why this is the case.

Please take a look. https://t.co/q9z9wfjzbs

– Giulio Moreno (@jjcmoreno) February 7, 2025

To address the inefficiency of Ethereum L2 solutions, Andre Cronje proposed leveraging Sonic's technology to bypass the limitations of the centralized model.

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