Layer 2 Solutions Pivot to Crypto Cards Amidst Growth Challenges

News Flash 2026-01-22 20:17

Layer 2 (L2) blockchain solutions are increasingly turning to crypto debit cards as a means to sustain on-chain activity amidst fading expansion narratives. This shift comes as many L2s, including Starknet and Zero Network, face challenges in maintaining user engagement and transaction volumes. Starknet, for instance, reported a transactions per second (TPS) rate of 2.64, significantly lower than Ethereum's mainnet. Crypto cards, both custodial and non-custodial, are emerging as a practical application for L2s. These cards facilitate fiat payments while keeping users within blockchain ecosystems. Notable examples include Etherfi's use of Scroll for gas-free transactions and Gnosis Pay's integration with non-custodial wallets. Meanwhile, Polygon has also shifted focus towards payments, with significant stablecoin transfer volumes and strategic acquisitions to bolster its payment infrastructure. This pivot highlights the necessity for L2s to find stable transaction scenarios to maintain relevance and activity, leveraging their low-cost and efficient transaction capabilities.

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