September 1, 2022, 1:20PM EDT
• 8 min read

State of Scaling Issue 4: How The Merge Impacts Rollups and Bridges

Quick Take

  • In this bi-weekly series, we look into some of the most interesting data and developments across the Layer 2 blockchain landscape, from DeFi and bridges to network activity and funding
  • The Ethereum Merge is drawing significant attention from the crypto community and many traders are attempting to speculate on the developments pre- and post-Merge
  • One of the main implications is that traders will attempt to maximize the amount of Ether held by their private keys pre-Merge, which may include borrowing Ether from alternative ecosystems
  • Rollups, bridges and alt L1s will likely see an outflow of Ether from their TVL and liquidity pools and into Ethereum mainnet
  • There will likely be a scramble post-Merge where traders would seek to unwind any leveraged positions on alternative ecosystems

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