‘XRP Narrative Is Looking Stronger’ as Ethereum Founder Admits Sad Reality: Analyst

• Vitalik Buterin admits Ethereum’s L2 strategy isn’t working anymore.
• XRP’s simple, efficient model is gaining momentum over Ethereum’s complexity.
• Ethereum’s scaling struggles give XRP an opportunity to lead.

Vitalik Buterin, co-founder of Ethereum, recently acknowledged the failure of Ethereum’s initial vision for Layer-2 (L2) networks. In a candid statement, Buterin admitted that L2 solutions, once expected to be the key to Ethereum’s scalability, have not lived up to expectations.

He argued that the Ethereum mainnet is scaling at an adequate pace and that many L2 networks fail to meet Ethereum’s standards for decentralization and security. This shift in Ethereum’s approach marks a significant turning point in the network’s long-term development strategy.

For years, Ethereum has relied on L2 solutions, such as Polygon, Arbitrum, and Optimism, to alleviate congestion and improve transaction speeds on its network. But according to Buterin, some L2s are still dependent on centralized systems like multisig overrides, which compromise their decentralization.

Furthermore, Buterin raised concerns that some of these networks may never fully decentralize to meet Ethereum’s standards. As Ethereum focuses more on improving the mainnet, the future role of L2s in scaling the network remains uncertain.

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The XRP Narrative Gains Strength

In light of Buterin’s comments, analysts are now pointing out that the XRP narrative is looking stronger than ever. According to Jungle Inc Crypto News, Ethereum’s struggles with L2 solutions have made XRP’s simpler, more effective model even more appealing.

While Ethereum spends 2026 trying to fix fragmented L2 layers and implement complex multisig systems, XRP’s streamlined network already delivers 3-second finality and institutional-grade settlement without additional layers.

The XRP Ledger (XRPL) was designed with scalability in mind, and it operates without the bloat and complexity of L2 solutions. Analysts suggest that Ethereum’s attempt to build what XRP already offers underscores the growing contrast between the two networks.

Complexity, as Ethereum has learned, can be an attack vector, and XRP’s simplicity is becoming its biggest strength. With Ethereum struggling to fix its scaling issues, XRP is increasingly seen as a more reliable and efficient alternative for decentralized financial applications.

As Ethereum works through these challenges, XRP’s straightforward, low-bloat framework is attracting more attention, positioning it as a compelling choice for businesses and institutions looking for fast and reliable transaction processing solutions. The XRP narrative is gaining momentum, and as Ethereum faces setbacks, XRP’s clear advantage in simplicity continues to drive its growth.

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