The cryptocurrency industry is seeing a surge in Layer 1 (L1) solutions, each offering scalability, decentralization, and improved user experience. However, questions are being raised about the value of constantly launching new L1 blockchains when Layer 2 (L2) solutions are addressing scalability concerns. Some believe the L1 market is overcrowded, with only a few gaining traction, while others see the influx of new L1 chains as innovation. L2 solutions, which build on top of existing L1 chains, offer scalability improvements without the need for new blockchain infrastructures. The industry faces a decision on whether to focus on refining L2 solutions or launching new L1 blockchains.



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