Starkware's restructuring stems from a 98% drop in protocol revenue; previously reaching $6 million per month, it now only generates tens of thousands of dollars. Scroll has also recently begun layoffs, again due to a loss of revenue streams – it's simply not making money. Scroll's on-chain revenue (24h) is currently $112, and chain fees are around $149, placing it at the bottom of the L2 blockchains. Besides market conditions, Ethereum's two upgrades last year, which improved blob and gas limits, further reduced transaction costs. Coupled with historically low gas fees on the Ethereum mainnet, smaller L2 chains are undoubtedly struggling. Many smaller L2 chains have been struggling since last year, and their current downsizing and restructuring indicate that the industry is entering a phase of competition based on scale and low fees. Only a few leading L2 chains can achieve stable profitability, while smaller chains will have to downsize or be acquired to survive. In the past, when the gas was high, everyone complained but still used the service. Now that the gas has dropped, nobody is using it anymore.