Synthetix moved to Ethereum layer-2 network Optimism in 2022 before expanding to Arbitrum and Base.
Ethereum News
Perpetuals trading platform Synthetix is moving back to Ethereum's mainnet after a three-year absence, with founder Kain Warwick stating the network can now handle high-frequency financial applications. Network congestion previously forced derivatives platforms to migrate elsewhere, but reduced demand and scaling improvements have made layer-1 viable again.
Warwick said on Wednesday that by the time perpetual decentralized exchanges became popular, the mainnet was too congested. He noted it remains unusual that no perpetual DEX has operated on mainnet, describing Ethereum layer-1 as the best place to run such platforms now that conditions have improved.
High gas fees and network congestion made it impractical to operate complex trading infrastructure on Ethereum for several years. Many perpetual platforms migrated to layer-2 networks or alternative blockchains during that period. Synthetix moved to Ethereum layer-2 network Optimism in 2022 before expanding to Arbitrum and Base.
Decentralized derivatives exchange dYdX transitioned from mainnet to StarkWare layer-2 solution StarkEx around the same time. Warwick said the cost per transaction degraded market efficiency on the chain, making it unfeasible to run critical infrastructure because costs were simply too high.
On Wednesday, Ethereum's average gas fee stood at approximately 0.71 gwei, nearly 26 times lower than the same day 12 months ago when it averaged 18.85 gwei. Warwick said the combination of layer-2 and layer-1 Scaling means critical infrastructure can operate on mainnet again.
Some Ethereum proponents predict further network capacity improvements in 2026. Ethereum educator Anthony Sassano recently stated the goal to increase Ethereum's gas limit to 180 million next year represents a baseline rather than a best-case scenario.
Warwick expects other perpetual DEXs to follow Synthetix back to mainnet, arguing Ethereum now has capacity to support multiple perp DEXs simultaneously. He said most crypto liquidity exists on Ethereum mainnet, including most assets, margin, and liquidity, making it the most efficient on-chain market.
Warwick added that Ethereum's development improved significantly in 2025, potentially marking the best year for the network since the Merge in September 2022. He noted a renewed focus on builder needs rather than concentrating solely on the network itself.
Warwick joked it would not be a Synthetix launch if someone did not try to follow within 20 minutes, suggesting competitors will likely pursue similar mainnet strategies. The return to Ethereum layer-1 reflects broader shifts in network economics and infrastructure capacity across the blockchain ecosystem.
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