Ronin’s decision to migrate back to Ethereum as a full Layer 2 network raises a big question: are standalone blockchains losing ground to Ethereum’s growing Layer 2 ecosystem? With Ethereum upgrades improving speed and lowering costs, the case for abandoning sidechains is becoming harder to ignore.
Key Takeaways
-
Ronin is moving back to Ethereum as a Layer 2, citing security, scalability, and cost improvements.
-
Sidechains face growing pressure as Ethereum Layer 2 networks mature and attract institutional adoption.
-
Immutable X and Polygon remain strong players in gaming but face competition from Ethereum’s scaling roadmap.
-
Ronin’s Proof-of-Distribution model shifts incentives from validators to active builders.
-
Security incidents on Ronin highlight the risks of running independent sidechains.
Why Ronin Is Returning to Ethereum
Ronin began as a gaming sidechain for Axie Infinity, providing low fees and fast transactions when Ethereum had limitations. After Ethereum 2.0 upgrades made transactions cheaper and more efficient, Ronin found it made more sense to become an Ethereum Layer 2.
By moving back, Ronin inherits Ethereum’s decentralization, institutional momentum, and security model. It also distances itself from past exploits, including the $625 million hack in 2022 and the $12 million exploit in 2024, which exposed the vulnerabilities of smaller sidechains.
Immutable X: Promise vs. Plateau
Immutable X set out to be the top platform for NFTs and gaming, using zero-knowledge rollups. The technology works well, but actual adoption has not matched the early excitement. Aside from a few major partnerships, growth in gaming has slowed. The goal of becoming the main gaming chain hasn’t happened at the scale many hoped for.
One challenge for Immutable X is its narrow focus. By concentrating on NFTs and gaming, it tied its growth to markets that can be unpredictable. When the play-to-earn trend faded, there were fewer big games to keep activity high, and smaller developers didn’t join as quickly. Without more use cases or a larger developer base, Immutable X could end up as a niche platform instead of a top Layer 2 option.
Polygon: Versatility or Fragmentation?
Polygon positioned itself as a versatile scaling solution, offering everything from proof-of-stake chains to zk-rollups. On the surface, this range suggests adaptability, but in practice, it may be creating more noise than clarity.
Much of Polygon’s momentum has been fueled by incentives, subsidies, and aggressive marketing campaigns rather than deep, organic developer commitment. While headline partnerships draw attention, questions remain about how much of that activity translates into sustainable, long-term usage.
The main risk for Polygon is trying to do too much at once. This could make its focus unclear and leave developers unsure about which products will last. In this case, being versatile might actually make it harder for Polygon to become a leader in any one area.
Ethereum’s Upgrades Change the Game
Ethereum’s move to Proof-of-Stake and recent scaling updates have changed things. Gas fees, which used to push projects to sidechains, have gone down, and the network can now handle more transactions.
Now, developers and investors don’t have to choose between cost and security. Instead of running separate chains, projects can use Ethereum’s strong infrastructure and benefit from its large pool of liquidity and developers.
New Tokenomics and Incentives
One of the more interesting aspects of Ronin’s transition is its new Proof-of-Distribution model. Instead of rewarding validators, Ronin will distribute incentives to developers, liquidity providers, and other contributors.
This approach is meant to support real growth in the ecosystem. It also shows that the future is not just about keeping chains secure, but about rewarding the people who help build and maintain these communities.
Security as a Deciding Factor
Security is still the biggest weakness for sidechains. The major Ronin hack in 2022 was a wake-up call for the whole industry. By moving to Ethereum’s Layer 2, Ronin lowers its risk of bridge attacks and other small-chain problems.
For projects considering their next steps, this migration is a reminder that trust and safety matter just as much as performance.
Is Abandoning Sidechains the Future?
Ronin’s return to Ethereum suggests that abandoning sidechains might become a trend, especially as Ethereum continues to strengthen. While networks like Immutable X and Polygon still have unique positions, the market seems to be consolidating around Ethereum’s scaling ecosystem.
For developers, this shift is a chance to build on infrastructure that balances cost, speed, and security. For investors, it’s a sign that Ethereum’s influence isn’t fading, it’s growing stronger.
Ronin’s decision to migrate back to Ethereum as a full Layer 2 network raises a big question: are standalone blockchains losing ground to Ethereum’s growing Layer 2 ecosystem? With Ethereum upgrades improving speed and lowering costs, the case for abandoning sidechains is becoming harder to ignore.
Key Takeaways
-
Ronin is moving back to Ethereum as a Layer 2, citing security, scalability, and cost improvements.
-
Sidechains face growing pressure as Ethereum Layer 2 networks mature and attract institutional adoption.
-
Immutable X and Polygon remain strong players in gaming but face competition from Ethereum’s scaling roadmap.
-
Ronin’s Proof-of-Distribution model shifts incentives from validators to active builders.
-
Security incidents on Ronin highlight the risks of running independent sidechains.
Why Ronin Is Returning to Ethereum
Ronin began as a gaming sidechain for Axie Infinity, providing low fees and fast transactions when Ethereum had limitations. After Ethereum 2.0 upgrades made transactions cheaper and more efficient, Ronin found it made more sense to become an Ethereum Layer 2.
By moving back, Ronin inherits Ethereum’s decentralization, institutional momentum, and security model. It also distances itself from past exploits, including the $625 million hack in 2022 and the $12 million exploit in 2024, which exposed the vulnerabilities of smaller sidechains.
Immutable X: Promise vs. Plateau
Immutable X set out to be the top platform for NFTs and gaming, using zero-knowledge rollups. The technology works well, but actual adoption has not matched the early excitement. Aside from a few major partnerships, growth in gaming has slowed. The goal of becoming the main gaming chain hasn’t happened at the scale many hoped for.
One challenge for Immutable X is its narrow focus. By concentrating on NFTs and gaming, it tied its growth to markets that can be unpredictable. When the play-to-earn trend faded, there were fewer big games to keep activity high, and smaller developers didn’t join as quickly. Without more use cases or a larger developer base, Immutable X could end up as a niche platform instead of a top Layer 2 option.
Polygon: Versatility or Fragmentation?
Polygon positioned itself as a versatile scaling solution, offering everything from proof-of-stake chains to zk-rollups. On the surface, this range suggests adaptability, but in practice, it may be creating more noise than clarity.
Much of Polygon’s momentum has been fueled by incentives, subsidies, and aggressive marketing campaigns rather than deep, organic developer commitment. While headline partnerships draw attention, questions remain about how much of that activity translates into sustainable, long-term usage.
The main risk for Polygon is trying to do too much at once. This could make its focus unclear and leave developers unsure about which products will last. In this case, being versatile might actually make it harder for Polygon to become a leader in any one area.
Ethereum’s Upgrades Change the Game
Ethereum’s move to Proof-of-Stake and recent scaling updates have changed things. Gas fees, which used to push projects to sidechains, have gone down, and the network can now handle more transactions.
Now, developers and investors don’t have to choose between cost and security. Instead of running separate chains, projects can use Ethereum’s strong infrastructure and benefit from its large pool of liquidity and developers.
New Tokenomics and Incentives
One of the more interesting aspects of Ronin’s transition is its new Proof-of-Distribution model. Instead of rewarding validators, Ronin will distribute incentives to developers, liquidity providers, and other contributors.
This approach is meant to support real growth in the ecosystem. It also shows that the future is not just about keeping chains secure, but about rewarding the people who help build and maintain these communities.
Security as a Deciding Factor
Security is still the biggest weakness for sidechains. The major Ronin hack in 2022 was a wake-up call for the whole industry. By moving to Ethereum’s Layer 2, Ronin lowers its risk of bridge attacks and other small-chain problems.
For projects considering their next steps, this migration is a reminder that trust and safety matter just as much as performance.
Is Abandoning Sidechains the Future?
Ronin’s return to Ethereum suggests that abandoning sidechains might become a trend, especially as Ethereum continues to strengthen. While networks like Immutable X and Polygon still have unique positions, the market seems to be consolidating around Ethereum’s scaling ecosystem.
For developers, this shift is a chance to build on infrastructure that balances cost, speed, and security. For investors, it’s a sign that Ethereum’s influence isn’t fading, it’s growing stronger.
![Avalanche [AVAX] jumps 7% ahead of token unlock: Is $43.50 coming?](https://coininsights.com/wp-content/uploads/2024/05/avax-token-unlock-schedule-350x250.png)
“This is exactly what I was looking for, thank you!”
“I agree with your points, very insightful!”