Ethereum Layer 2 networks (such as Arbitrum and Optimism) are undergoing rapid expansion that is fundamentally reshaping the DeFi economic landscape, reducing transaction costs and shifting user activity away from the mainnet. While this has expanded DeFi's accessibility, it has also put pressure on protocol revenues, forcing a transition from high-margin business models to high-volume business models. As Ethereum gradually evolves into a settlement layer, liquidity is dispersing across various Layer 2 networks, creating new competitive dynamics and raising investor concerns about long-term value capture.