Analyst: Surge in L2 Numbers Raises Concerns about Liquidity Fragmentation

BlockBeats news, on August 7, several analysts pointed out that the surge in Ethereum Layer 2 solutions is causing concerns about decentralized liquidity.

Gemini head of sales Patrick Liou said that the emergence of multiple Layer 2 blockchains, although aimed at solving scalability issues, has inadvertently weakened the operation and adoption of blockchains and their applications.

Although it is not easy to transfer liquidity from one blockchain to another, advances in bridging applications are making the process smoother. Gemini's report shows that a new Ethereum Layer 2 appears every 19 days, further exacerbating the problem of decentralized liquidity.