What is the appeal for Layer 2 projects?

[Playbuddy]

I've come across a lot of Layer 2 solutions recently, and while going through them, they all had one thing in common.

They basically reduce congestion and also lower gas fees. They do this by processing transactions off chain while still maintaining Ethereum's security, making DeFi, NFT and everyday crypto transactions faster and a lot more cheap.

[Mia Chloe]

The layer 2 protocol you see discussions stirred up about every now and then is literally just an upgrade. The whole process is aimed at improving the efficiency of that particular network and one way to do that is to improve fee rate calculations and also reduce congestions. Generally we come to notice that not all networks implement the layer 2 protocol and it's simply as a result of adoption. If adoption rate doesn't make the network reach it's threshold then most times developers don't consider implementing a layer 2 upgrade.

Sometimes the upgrade we see on most altcoin networks come as a result of many new members coins and tokens being launched on the network and shortly after congestions may begin to become a problem that needs fixing.

[Faisal2202]

I've come across a lot of Layer 2 solutions recently, and while going through them, they all had one thing in common.

They basically reduce congestion and also lower gas fees. They do this by processing transactions off chain while still maintaining Ethereum's security, making DeFi, NFT and everyday crypto transactions faster and a lot more cheap.

That's the main reason they were developed in the first place because on ETH network the fee was high and many people were not using it just because of fee and some other issues they find relevant but IMO fee was the only issue and with L2 it was solved.

But with lower fee on L2 more scam projects start getting developed on L2 and which caused a great fear in the market but still there are reputable L2 network in the market which have their own token and in the long run they are profitable too but with time (like now) L1 is the most pumped and dominated narrative IMO L2 has not yet gain that much attraction. Besides these few benefits of the L2, they are now increasing their inter-operatability to integrate with each other in many simple way increasing the amount of products that will be developed on them and increasing the marketcap as a whole.

[TomPluz]

Well, you already said it well...what makes L2 solutions to be attractive is making things faster to solve congestions in a certain network while still maintaining the critical security at hand and moving things at an acceptable fees. And in the Ethereum network this is what we really need...the demand is there so supply must be offered. Now, one more advantage is that many L2 solution providers are also coming up with their own coins or tokens which is in a way generating wealth for all the people involved...essentially shooting one stone and then killing so many birds.

[libert19]

Now, one more advantage is that many L2 solution providers are also coming up with their own coins or tokens which is in a way generating wealth for all the people involved...essentially shooting one stone and then killing so many birds.

This precisely. L2s has it's use but with the amount of layer 2s that are popping up, it looks like they are only there to make money for themselves and as such these projects will be short-lived.