The Technical-Consumer Disconnect: Why L2s Are Missing Their Market

Why L2s Aren’t Making the Cut

Olly Jones

Business Development

Layer 2 solutions offer scalability and lower costs by improving transaction speeds and reducing congestion on Layer 1 (L1) networks. The technical advantages are clear—faster transactions, lower fees, and improved scalability.

However, while these benefits are well understood in developer circles, they often fall short when it comes to consumers. Currently, L2s are struggling to drive adoption and reach their full market potential.

Why Too Many L2s Aren’t Making the Cut

The issue is simple: many L2 solutions are still marketed primarily based on their technical superiority, but this doesn’t always translate to clear value for consumers.

Building L2s has become more accessible, resulting in the proliferation of solutions that all promise faster and cheaper transactions, but without clear consumer value.

Here are the issues with many L2s:

  • Ease of creation: It’s easy to build L2 solutions, but that doesn’t guarantee they meet consumer needs.

  • Lack of differentiation: Just like a flooded car market, more doesn’t mean better. Many L2s fail to offer distinct, meaningful benefits for users.

  • Failure to connect with consumers: Without clear differentiation that addresses consumer needs, L2s struggle to make an impact in the market.

The Pitfall of Overloading Consumers with Tech Talk

Blockchain tech is complex, and for most users, what matters most is real-world benefits: how an L2 solution improves their experience, whether they’re a retail user, business, or investor.

L2s often focus on technical advantages, but speed and scalability alone don’t resonate with consumers. What they care about most is how these features enhance their experience.

  • Focus on user experience: Users care about speed, affordability, and simplicity, not the underlying technology.

  • Technical complexity isn’t the goal: To drive adoption, L2s must prioritize ease of use and seamless experiences, not just flashy technical terms.

Consumer-Centric Questions L2s Need to Answer

So, what should L2 projects be doing to connect with consumers?

Here are a few key questions that any L2 solution should be answering to make its value proposition clear:

  • How does this improve my experience?

    Consumers want to know how an L2 network enhances their experience, whether that’s through faster transactions, lower fees, or better security. The focus needs to be on the user, not just the network itself.

  • What problem does this solve?

    Many L2s claim to solve the “scalability problem,” but what does that mean for a retail user? L2 projects need to focus on solving real, tangible consumer problems, such as providing more affordable DeFi services, faster payments, or improved access to decentralized applications.

  • Why should I care about this over other options?

    With so many L2s in the market, consumers need to understand what sets your solution apart. Does it offer faster withdrawals? Lower gas fees? Better liquidity? Whatever the differentiator is, it must be easy to understand and valuable to the end user.

Examples of Effective Consumer-Focused Positioning in the Layer 2 Space

Several projects excelling at consumer-focused positioning by emphasizing speed, low fees, ease of use, and accessibility. Here are notable examples:

Base (by Coinbase)

Base is marketed as a “home for everyone onchain,” leveraging Coinbase’s brand to assure users of safety, simplicity, and seamless integration with existing Coinbase accounts. Its integration with Coinbase’s app ecosystem has driven rapid onboarding of non-crypto-native consumers, lowering entry barriers. Base promises low transaction fees, fast settlement, and direct fiat onramps, making it especially attractive to retail users and newcomers to crypto.

Polygon

Polygon brands itself as “Ethereum’s Internet of Blockchains,” focusing on user-friendly dApps, NFT marketplaces, and gaming platforms. Polygon’s partnerships with major brands, such as Reddit and Starbucks, have attracted millions of non-crypto users to its network through loyalty programs and digital collectibles. Near-instant transactions and negligible fees enable smooth experiences for DeFi, NFT trading, and gaming, making it popular among mainstream users seeking affordable blockchain interactions.

ZKsync

ZKsync emphasizes “security and speed,” targeting users who prioritize privacy and instant transaction finality. Zksync’s focus on UX, including simple wallet integrations and mobile support, has made it a go-to option for everyday blockchain users. Zero-knowledge proofs enable instant, low-cost transactions while maintaining Ethereum-level security, appealing to users sensitive to both privacy and efficiency.

Refining Your Messaging to Win Over Consumers

If you’re leading an L2 project, take a step back and evaluate your own messaging from a consumer-first perspective. Here are a few steps to help refocus your strategy:

  • Put yourself in the consumer’s shoes: Does your messaging make it clear how your L2 solution will benefit them directly? If not, it’s time to simplify.

  • Simplify the technical jargon: You don’t need to explain every detail of your tech stack. Focus on how speed, affordability, and user experience will improve their lives.

  • Highlight real-world use cases: Position your solution around consumer-friendly applications, whether that’s lower fees, faster transactions, or new opportunities in DeFi and NFTs.

  • Test your messaging with real users: If you’re unsure about how your messaging resonates, ask real consumers what they care about most and adjust your focus accordingly.

Take Action: Shift to Consumer-Focused Messaging

As the L2 space expands, projects must avoid getting bogged down in technical details and instead focus on delivering value to consumers. L2s need to be positioned not just as scalable, low-fee solutions but as tools that truly improve the user experience.

If you want your L2 to gain adoption, make it about the consumer, not the complexity behind it. By shifting your messaging to focus on real-world benefits and consumer pain points, you’ll stand out in a crowded market and drive long-term growth for your project.

Keep it simple, keep it impactful, and the market will follow.

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