The Ethereum layer-2 ecosystem is experiencing a consolidation phase as many general-purpose chains struggle to justify their existence. The recent shutdown of Zero Network highlights the challenges faced by these networks, with Ethereum creator Vitalik Buterin urging a rethink of the network's scaling roadmap. Industry experts argue that while the number of layer-2s has exploded, only those with clear financial demand and user activity will sustain themselves. Data from DefiLlama shows that activity is concentrated among a few networks, with Base and Arbitrum accounting for over 80% of layer-2 DeFi total value locked. Despite the reduced costs of launching rollups due to Ethereum's Dencun upgrade, attracting users remains a significant challenge. As a result, many projects are shifting focus from infrastructure to application-specific markets like payments and tokenized assets, leveraging Ethereum's security properties for specific business needs.