As blockchain infrastructure evolves, Ronin Network—originally built to power the success of Axie Infinity—is set to return to Ethereum as a Layer 2 network. This strategic shift reflects both technological maturity within the Ethereum ecosystem and growing institutional interest in decentralized platforms. We analyze how Ronin’s migration signals a broader trend toward modular, scalable, and interoperable blockchain architecture
Ronin Network, the custom blockchain originally developed by Sky Mavis—the creators of the widely known NFT-based game Axie Infinity—has announced a strategic pivot: the project will migrate back to the Ethereum ecosystem, this time as a Layer 2 (L2) network. This move marks a significant evolution in Ronin’s architectural direction, shifting from a specialized Layer 1 (L1) gaming blockchain to a general-purpose Ethereum rollup designed to support a broader range of decentralized applications (dApps), including but not limited to gaming.
The Ronin blockchain was initially launched in 2021 as a purpose-built L1 solution to overcome the scalability limitations of Ethereum at the time. During that period, Ethereum’s high gas fees and network congestion presented formidable barriers to blockchain-based games requiring frequent microtransactions. Ronin offered low-cost, high-throughput alternatives, enabling Axie Infinity to flourish during the height of the play-to-earn (P2E) boom. However, in the years since, the Ethereum ecosystem has undergone significant infrastructure upgrades—most notably the transition to Proof-of-Stake via “The Merge” and the rapid maturation of Layer 2 rollup technologies. These developments have substantially reduced transaction costs and improved scalability across the Ethereum network.
“Things are different now. Ethereum is back. Transaction costs and speeds are better than ever. We are at the beginning of a new era of growth, and Ronin is ready to thrive,” the Ronin team stated in their announcement. The network plans to complete its migration to Ethereum as a Layer 2 by Q2 of 2026, a process that will likely involve integrating rollup technology, potentially through zero-knowledge (ZK) or optimistic rollups, depending on future development choices.
The return to Ethereum reflects not only a shift in technical direction but also a strategic alignment with Ethereum’s growing dominance in institutional finance. Ronin emphasized that “Ethereum is winning the war for Wall Street’s attention and capital,” citing the increasing involvement of institutional investors in the Ethereum ecosystem as a key driver of their decision. This trend is evidenced by the emergence of Ethereum-centric treasury management firms and exchange-traded products, as well as a surge in ETH accumulation by publicly traded entities.
Part of this institutional embrace is being catalyzed by initiatives like Etherealize, a marketing and advocacy firm launched in January 2025 with backing from the Ethereum Foundation. Its mandate is to position Ethereum as a foundational infrastructure layer for modern finance, akin to how TCP/IP underpins the internet. Etherealize targets fund managers, corporate treasuries, and financial analysts, aiming to bridge the communication and conceptual gap between decentralized blockchain protocols and traditional capital markets.
The broader Ethereum ecosystem has also witnessed the proliferation of Layer 2 networks such as Arbitrum, Optimism, Base, and zkSync, all contributing to a modular blockchain future where Ethereum acts as the settlement and data availability layer, while rollups handle execution at scale. Ronin’s decision to join this model demonstrates the growing appeal of Layer 2 architecture not only for DeFi and infrastructure protocols, but now also for gaming-focused chains seeking both scalability and composability.
By becoming a Layer 2, Ronin will be able to inherit Ethereum’s base layer security while achieving higher throughput and interoperability with other L2s and Ethereum-native applications. This unlocks potential for more seamless integration of gaming economies with DeFi protocols, NFT marketplaces, identity systems, and even real-world asset tokenization. For game developers, it means broader liquidity access, cross-platform compatibility, and composability within the broader Ethereum Virtual Machine (EVM) ecosystem.
Furthermore, the move could enable more robust staking mechanisms, yield generation, and on-chain governance through Ethereum-native tools. As ETH continues to gain traction as a yield-bearing asset through staking, the concept of “capital wrappers”—tokenized forms of ETH that automatically accrue staking rewards—is becoming increasingly popular among institutional and retail investors alike. According to Matt Hougan, CIO of Bitwise Asset Management, these instruments make Ethereum-based products more familiar to traditional investors who are accustomed to income-generating financial vehicles such as bonds or dividend stocks.
Another key factor driving this migration is regulatory pressure in the United States. The recently passed GENIUS Act includes provisions prohibiting yield-generating stablecoins, effectively restricting many forms of passive income products in the centralized crypto sector. Analysts argue this will push capital into decentralized alternatives, particularly Ethereum’s DeFi ecosystem, where users can stake assets, provide liquidity, and earn yields in a fully on-chain, permissionless manner. For platforms like Ronin, aligning with Ethereum now positions them to capture this capital flow and develop compliant DeFi integrations within gaming and metaverse applications.
Ultimately, Ronin’s transition to an Ethereum Layer 2 network illustrates a maturing view of blockchain infrastructure: one that favors composability, interoperability, and institutional alignment over siloed, standalone ecosystems. By reintegrating with Ethereum’s rapidly evolving modular architecture, Ronin not only future-proofs its technical foundation but also repositions itself as a platform capable of enabling the next generation of on-chain applications—whether in gaming, finance, or beyond.
