Ethereum L1 excels at providing maximal security and a unified settlement environment because it bundles execution, consensus, and data availability into a single, battle-tested chain. For example, its ~$50B Total Value Locked (TVL) and over 500,000 daily active addresses demonstrate unparalleled network effects and trust. However, this monolithic design creates a shared resource pool, capping throughput at ~15-30 TPS and leading to variable, often high, gas fees during congestion, directly impacting user experience and operational cost predictability.