From the competitive landscape, the Layer2 sector has evolved into an extreme duopoly-like oligopoly. Optimism, Base, and Arbitrum collectively account for about $4.8 billion in TVL, swallowing 96% of the entire ecosystem’s share. This high degree of centralization means that, besides top projects being able to maintain liquidity, many smaller and mid-sized Layer2 networks face the risk of being marginalized, and ecosystem diversity is instead suppressed.

OP1.48%
ARB0.59%
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