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◻️ Is L2 Transaction Growth Leading to Fragmentation?
Recently, gas prices have spiked, raising questions. As L2s grow with more transactions than Ethereum's L1, liquidity fragmentation and complex user flows are emerging challenges.
L2s handle more transactions than L1, thanks to lower fees and faster speeds. However, this brings up issues of fragmentation, making it harder for users to manage wallets, assets, and tokens across different layers.
Potential inefficiencies:
▫️Liquidity scattering: With funds spread across different chains (L1 and L2), users often face challenges in accessing liquidity quickly.
▫️Complex navigation: Users are forced to manage multiple wallets, handle various gas tokens, and switch networks—complicating even basic transactions.
▫️Impact on UX: This fragmented landscape makes it harder to discover accurate prices, execute seamless transactions, and maintain an optimal user experience.
Chain Abstraction now seems more inevitable than ever. 0 reply
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