In a recent tweet from crypto journalist Laura Shin, she highlighted a thought-provoking clip from her Unchained podcast featuring Kenny Li, co-founder and core contributor of Manta Network. The discussion dives into the limitations of current blockchain scaling solutions and why relying on a single Layer 2 (L2) network—just like Ethereum's scaling layers—won't cut it for reaching Web2-scale user adoption. If you're into meme tokens or building on blockchain, this is a must-read for understanding where the industry might be heading.

The Tweet That Sparked the Conversation

Laura Shin shared the clip on X (formerly Twitter), pointing out the stark contrast between crypto's current daily active users (DAUs) and those in traditional apps. "300k DAUs vs. 20M DAUs 😳," she wrote, tagging Kenny Li (@superanonymousk) and teasing his vision for "horizontal scalability." The video clip, embedded in the tweet (view it here), shows Li breaking down why no single L2 or even high-performance chains like Solana can handle the massive user loads seen in Web2 giants.

For context, Layer 2 refers to secondary frameworks built on top of base blockchains like Ethereum to improve speed and reduce costs. Think of them as express lanes on a highway. But as Li argues, even these aren't enough for true mass adoption.

Pump.fun vs. Duolingo: A Reality Check on Crypto Scale

In the clip, Li uses real-world examples to illustrate the gap. He references pump.fun, a popular meme token launchpad on Solana that's become a hotspot for quick, viral token creations. At its peak, pump.fun boasted around 300,000 DAUs—impressive for crypto, but peanuts compared to apps like Duolingo, which sees over 20 million DAUs. That's nearly 67 times more users logging in daily to learn languages than trading memes on Solana's hottest platform.

"Why one L2 can't do it all," Li emphasizes, is because blockchain infrastructure hits bottlenecks when scaling vertically (beefing up a single chain). Pump.fun's success shows how meme-driven activity can spike traffic, but imagine if every meme token, DeFi app, and NFT marketplace tried to cram onto one L2. Congestion, high fees, and downtime would ensue, much like Ethereum's gas wars during bull runs.

This comparison isn't just numbers—it's a wake-up call. Meme tokens thrive on hype and community, but without scalable infrastructure, projects risk losing users to frustration. Li, drawing from his background in cloud computing since 2011, likens this to the scalability trilemma in blockchain: you can't have decentralization, security, and scalability all maxed out on one chain.

Manta Network's Pivot: From L2 to App-Focused Innovation

Manta Network, originally an L2 leveraging Celestia for cheap data availability, is making a bold shift. As detailed in the full Unchained episode (listen on Apple Podcasts or watch on YouTube), Li explains that with over 500 L2s now in the market, the space has become commoditized. Early on, Manta stood out for its low fees and high throughput, but now, differentiation is tough, and user adoption hasn't kept pace.

Instead of competing in the crowded infrastructure race, Manta is pivoting to building applications. Why? Apps drive real user engagement and revenue, while pure L2s often rely on incentives that lead to "mercantile" users jumping ship. This move aligns with trends where big players like Stripe and Circle build their own Layer 1s (base chains), while others like Robinhood opt for L2s. Li sees the future in app-specific L2s—tailored chains for particular use cases, like meme launchers or gaming—but even then, one isn't enough.

Horizontal Scalability: The Path to Billions of Users

Here's where Li's vision gets exciting for meme enthusiasts and builders. He advocates for horizontal scalability, which means spreading load across multiple L2s or chains rather than piling everything onto one. It's like cloud computing: when your app grows, you spin up more virtual machines instead of upgrading a single server.

• At low scale (e.g., 10,000 DAUs): One L2 can handle multiple apps just fine.
• At Web2 scale (e.g., 20M+ DAUs): Apps might need to deploy across several L2s, including ephemeral (temporary) ones, to maintain performance.

For meme tokens, this could mean seamless cross-chain launches or trading without the lag seen on overloaded networks. Li predicts L2s will become interchangeable resources, coordinated like cloud services, allowing apps to scale out as users flood in. No more "one chain to rule them all"—think a ecosystem of specialized L2s working in harmony.

This approach addresses the oversaturated L2 market by focusing on what matters: user growth. With institutional interest rising (think banks and big tech entering crypto), strategies like Manta's could pave the way for meme projects to reach mainstream audiences.

What This Means for Meme Token Creators and Investors

If you're launching or trading meme tokens, keep an eye on scalability debates. Platforms like pump.fun show memes can drive massive activity, but without horizontal scaling, growth caps out. Manta's pivot highlights a shift toward user-centric apps over raw infrastructure—potentially leading to more accessible tools for creating and memeing onchain.

Curious for more? Check out the full Unchained episode for deeper dives into stablecoins, L2 navigation, and institutional trends. As crypto evolves, understanding these limits could be the edge you need in the next bull run.