Are there too many Layer 2s in the current industry?

Author: Igor Mandrigin, co-founder and CTPO of Gateway.fm; Translator: Baishui, Golden Finance

Every few weeks, it seems that a new Layer 2 is launched, much to the chagrin of some Web3 industry commentators who worry about fragmentation. A recent report by Gemini Institutional Insights actually pointed out that a new Ethereum Layer 2 solution is launched approximately every 19 days. Faced with an endless stream of new zkEVM and optimistic Rollup solutions that continue to flood the market, criticism is getting louder and louder: "This is definitely a saturation point, and no more chains are needed."

Some of the most outspoken Layer 2 critics believe that Layer 2 is redundant, but this idea is too narrow. In many ways, arguing that the pace of creating new layers should be slowed down is like thinking that there were too many websites in 1998. The proliferation of Layer 2 has not caused the Web3 space to become overly bloated or fragmented. There aren’t that many chains today. That number is ridiculously low, and we’re at the beginning of a multi-decade explosion in specialized, modular blockchain infrastructure.

The rise of L2 is no flash in the pan.

While some argue that the L2 wave we’re experiencing is just a short-lived frenzy caused by the decline of DeFi, it’s actually an expansion of enterprise-grade infrastructure, with banks (including Deutsche Bank), game studios (gaming activity on some L2 blockchains grew by more than 20,000% in February 2025), logistics networks, and global manufacturers all jumping on board.

Industries like banking and logistics are generally risk-averse and don’t easily make major technological transitions. They do so because they have to, and in many cases, public chains can’t meet their needs. Going back to their inherent risk-averse DNA, large enterprises and institutions in these industries are generally reluctant to build on shared general-purpose L1s. Instead, they want to deploy their own chains, which allow them to enjoy customized performance, predictable costs, jurisdictional compliance, and fine-grained privacy.

This focus on proprietary networks is not unique to Web3. Think about it. Did Facebook, Netflix, and JPMorgan co-host GeoCities? Of course not, so why is Web3 different? Shared Layer1s and monolithic architectures may be suitable for early token experiments and composable DeFi primitives. However, the reality is that they cannot support the complexity, regulatory burdens, or contractual requirements of real-world enterprises.

The increasing viability of L2

Thanks to modular stacks, Rollup-as-a-Service platforms, and breakthrough zero-knowledge proof technology, building private chains is becoming increasingly feasible and accepted by many enterprises across industries. As the infrastructure improves, the cost of launching and maintaining private chains will also decrease, so we can expect the number of L2s to increase significantly over time.

Some onlookers will argue that the future is uncertain for users forced to jump between blockchains, while also expressing concerns about fragmented liquidity and tradable assets being spread across multiple platforms. These concerns are short-sighted. We are enabling seamless interoperability through a shared settlement layer, trust-minimized bridges, and unified account abstraction. Ultimately, end users won’t care if they’re on Rollup #4,318 or chain #9,072; they’ll just trade and have fun.

Just as cloud computing unlocked hyperscale by abstracting away layers of hardware, modular blockchains are unlocking hyperscale for value transfer, asset issuance, and programmable trust. Regardless of what the skeptics say, specialized layer-2s will not cannibalize each other. They will serve different verticals, jurisdictions, and use cases. A layer-2 for high-frequency trading can coexist with a layer-2 for a national land registry.

We’re not stuck in chains — we’re just scratching the surface. Anyone seriously betting on consolidation or some magical “winner takes all” chain is only betting on scale and sovereignty. The real bet is on hundreds of secondary layers and thousands of use cases, together building a modular, scalable future.