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Ethereum Scaling Challenges Drive Privacy Innovation

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Recent data reveals a concerning trend on Ethereum Layer 2 networks, where automated bots now consume over 50% of gas fees while searching for MEV opportunities without proportional cost. This creates both scaling inefficiencies and market fairness issues, highlighting structural problems in current transaction processing systems.

The situation has shifted the privacy conversation beyond simple anonymity toward practical scaling solutions. As the 2026 timeline approaches, this urgency may accelerate adoption of privacy-enhancing technologies that could ultimately strengthen Ethereum's long-term viability and market position.

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