Ethereum's Layer 2 (L2) scaling solutions continue to evolve amid growing demand and challenges related to cost and efficiency. While Ethereum focuses on L2 scaling, newer projects such as Celestia, NEAR, and EigenDA are exploring alternative approaches that aim to be more efficient and cost-effective. The upcoming Initia mainnet launch on April 24 is expected to integrate with Celestia, enabling over 10 additional chains, including Abstract, Converge, Rise, and Noble AppLayer, to post data into Celestia blocks. This development positions Celestia as a data availability layer for rollup ecosystems, facilitating higher throughput. However, Ethereum rollups and their users currently face high costs, paying an 83-fold premium to post to 4844 blobs compared to Layer 1 (L1) calldata. Ethereum's L1 blob fee annual run rate recently reached $32 million, accounting for approximately 30% of L2 revenue, with projections suggesting both L2 revenue and blob fees could increase more than 250-fold in the coming years. Despite these scaling efforts, some experts argue that many L2 solutions still rely on centralized sequencers or multisignature upgrades, which introduce centralization risks. There is also skepticism about whether existing L2s effectively drive value back to Ethereum's L1. Discussions emphasize that the future value accrual of Ethereum depends on its ability to support increased L2 activity without bottlenecks, with some advocating for more mainnet demand rather than proliferation of L2s. Overall, Ethereum remains the foundational engine powering the L2 economy, but its capacity to scale efficiently and maintain decentralization will be critical to sustaining growth.