Analysis: Ethereum L2 solution may trigger market concerns about liquidity fragmentation

Odaily News Several analysts have pointed out that the surge in Ethereum Layer 2 solutions is raising concerns about liquidity fragmentation. Patrick Liou, head of sales at Gemini, said that the emergence of multiple Layer 2 blockchains, although intended to solve 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 fragmented liquidity. (TheBlock)