According to TechFlow, on August 6, The Block reported that several analysts pointed out that the surge in Ethereum Layer 2 solutions is causing concerns about liquidity fragmentation.

Patrick Liou, head of sales at Gemini, said that the emergence of multiple Layer 2 blockchains, while intended to solve scalability issues, has inadvertently weakened the operation and adoption of blockchains and their applications. According to Gemini's report, a new Ethereum Layer 2 appears every 19 days, further exacerbating the problem of fragmented liquidity. Liou emphasized that although it is not easy to transfer liquidity from one blockchain to another, advances in bridge applications are making the process smoother.

A CoinShares Research blog from March highlighted the same issue, stating that Ethereum Layer 2 solutions “inadvertently fragment liquidity and composability, degrading overall application, developer, and user experience. Each Ethereum Layer 2 processes and orders transactions in blocks for its own asynchronous asset ledger and smart contracts in a centralized manner. This modular design results in a fragmented global state that negatively impacts liquidity.”