The blockchain ecosystem is currently facing an interesting dilemma: the explosive rise of Layer 2 solutions has indeed pushed Ethereum's throughput to new heights, with Gas fees once falling to just a few cents and transaction speeds being extremely fast. However, problems have also arisen — liquidity has been dispersed across various Rollup ecosystems.



Imagine that Arbitrum, Optimism, Starknet, Polygon... these Layer 2s are each governing themselves, and users and funds need to flow between them, requiring cross-chain bridging. What was originally intended to reduce costs has instead increased operational complexity. The liquidity that was once concentrated on the Ethereum mainnet is now fragmented, like a river split into several tributaries, each competing, yet none able to gather the power of a torrent.

The victory and division of Layer 2 are two sides of the same coin. Performance has doubled, but the ecosystem has become fragmented. This may be an inevitable path for Blockchain scalability, but in the short term, it will indeed make developers and users feel overwhelmed.
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SilentAlphavip
· 12-21 15:56
This is a typical case of having your cake and eating it too, gas is cheap but you soon find yourself in the hell of fragmentation. Cross-chain bridges really discourage a lot of people, what was meant to save money ends up making things increasingly complex. Once the liquidity dissipates, no L2 can become mainstream, and no one can dominate the market. If I had known, I shouldn't have spread out like this; wouldn't it be better to focus on one or two?
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MissedTheBoatvip
· 12-21 15:44
This is why I run back and forth between various L2s every day, the bridge fees have eaten into my profits.
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YieldWhisperervip
· 12-21 15:41
nah the liquidity fragmentation is just classic death spiral setup waiting to happen. saw this exact pattern in 2021 with all those competing sidechains... eventually one consolidates and the rest become ghost towns. the math doesn't check out when you factor in bridge fees tbh
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