The Layer 2 (L2) blockchain landscape is experiencing a notable slowdown in the creation of new chains, as the market becomes increasingly saturated. With approximately 150 L2 chains vying for user engagement, many are now at risk of closure due to dwindling demand. The study highlights an alarming trend: the competition among these chains is intensifying, leading to a potential shakeout in the ecosystem.
Significant Changes in the L2 Ecosystem
Over the past year, the L2 ecosystem has undergone significant changes, with applications gravitating towards a select few task-specific networks. This shift has left numerous chains struggling to attract liquidity and users, highlighting the intense competition within the sector.
Existential Challenges for L2 Chains
As a result, many L2 chains are facing existential challenges, as they find it increasingly difficult to maintain their relevance in a rapidly evolving market.
Bitcoin Hyper recently made headlines with its plans to enhance Bitcoin's capabilities through a Layer-2 solution, raising nearly $30 million in its presale. This development contrasts with the current challenges faced by many Layer 2 chains, as detailed in the previous report. For more information, see read more.
