Summary
TLDR: The proliferation of Layer 2 solutions may compete with the base layer for resources and dilute economic incentives, potentially weakening the Ethereum ecosystem.
Key Points
1. The proliferation of Layer 2 solutions may lead to competition with the base layer for resources such as fees, developers, and liquidity.
2. If the majority of transactions occur on Layer 2 solutions, the economic incentives supporting the base layer may diminish as validator fees decrease.
3. Over-reliance on Layer 2 solutions could potentially fragment activity within the Ethereum ecosystem, weakening cohesion and interoperability.