According to Milk Road, the market for Layer 1 blockchains (L1s) is expected to become increasingly fragmented, akin to social networks, suggesting that investing solely in one L1 is not advisable. This perspective highlights the importance of diversifying investments across different blockchain applications rather than concentrating too heavily on L1s. The report also references discussions with Avichal, emphasizing the strategic allocation between L1s and blockchain applications. These insights are crucial for traders looking to optimize their cryptocurrency portfolios by balancing investments between foundational blockchain infrastructures and emerging applications. Source: Milk Road.