Back to Ethereum: How Synthetix, Ronin and Celo saw the light

High value DeFi projects like Synthetix and Aave are making Ethereum L1 great again, as Ronin, Celo and Phala switch chains to become L2s.

In recent months, a raft of alt-L1s joined Ethereum to become L2s, even as other projects on L2s switch back to the Ethereum mainnet.

The Ethereum L1 is reasserting its claim to be the home of high-value DeFi it has seven times more TVL than its nearest rival while the L2 model offers millions in potential savings, along with network effects for alt-L1s that join the ecosystem.

Back in March, when bearishness around the extractive L2 roadmap was at its peak, mobile payments network Celo quietly closed down its validator network to become an L2. Now, its saving almost $7 million a year in operating costs.

In August, blockchain gaming L1 Ronin announced it was coming home to Ethereum in early 2026, five years after network congestion forced its popular game Axie Infinity off mainnet.

Ethereum has largely delivered on the scaling roadmap, says Jeffrey Jiho Zirlin, co-founder of Sky Mavis, which built both the game and alt-L1.

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