PANews reported on October 29 that according to The Block, an analyst said that as the demand for faster and more scalable solutions increases, the limitations of the underlying infrastructure of the Ethereum mainnet are driving users, applications and capital to Layer 2 solutions and competing blockchains such as Solana. Anmol Singh, co-founder of Zeta Markets, said in an interview: "The reason why Ethereum's Layer 2 solution emerged is because the underlying infrastructure is not sufficient to handle users, transactions and data, so users and capital are migrating to Layer 2 and other Layer 1 blockchains out of necessity."
Additionally, Qi Zhou, founder of QuarkChain and EthStorage, noted that the increase in the number of Layer 2 solutions on Ethereum could lead to liquidity fragmentation between different chains, affecting the entire ecosystem. Zhou pointed out potential solutions that could offset Ethereum's liquidity fragmentation. Zhou said: "Some protocols are emerging to provide cross-Layer 2 liquidity, allowing assets to flow seamlessly between Layer 2s, thereby reducing fragmentation."
