Liquidity becoming 'fragmented' as Ethereum layer-2 solutions surge, Gemini exec says
CryptoNewsTerminal Staff06 Aug, 2024
Liquidity becoming 'fragmented' as Ethereum layer-2 solutions surge, Gemini exec says
Gemini’s head of institutional sales, Patrick Liou, told Blockworks in an interview that “as more layer- twos are scaling on Ethereum, liquidity across the network is becoming fragmented.” He explained that while “layer-2s emerged to address scalability concerns with the Ethereum network, the proliferation of layer-2 solutions has led to arguments that liquidity is becoming fragmented — and, potentially, hampering the usability and adoption of certain blockchains and applications.” He added that "bridging applications are making it easier to move liquidity from one blockchain to another, though it is not a trivial task.”
