Multiple analysts have pointed out that the proliferation of Ethereum Layer 2 solutions is raising concerns about liquidity fragmentation. According to Gemini head of sales Patrick Liou, the emergence of multiple Layer 2 blockchains, while designed to address scalability issues, has inadvertently crippled the operation and adoption of blockchains and their applications. Although it is not easy to move liquidity from one blockchain to another, advances in bridging applications are making the process smoother. Gemini's report shows that a new Ethereum Layer 2 is emerging every 19 days, further exacerbating the problem of liquidity fragmentation.