🔥 Recent data shows a notable difference in TVL (Total Value Locked) distribution between Layer 1 and Layer 2 networks. While TVL on Layer 1 is highly concentrated in the top few protocols, Layer 2 has a more even distribution among top projects.

This reflects the different stages of development of the two technology classes. Layer 1 has stabilized with applications dominating a large market share, while Layer 2 is still in its infancy with many new projects emerging to compete. The diversification of TVL on Layer 2 represents great growth potential and reduces the risk of being too dependent on few projects in the future.