Traders trade. There are those who bought in at $10 that want to take profits now, and possibly re-buy when its dips. As we've seen with meme coins, its not all about fundamentals. And like I said, there hasnt been a real scaling solution thats completely ready - everything has been littered with constant delays.

Layer 2 requires a user to deposit and exit funds on that layer 2. If i was a dapp provider (putting aside the smart contract issue), I would put my dapp on a layer 2 that has users already depositing funds onto it.

we dont see many users using zkrollups because useability is fairly limited (because of the smart contract issue) - in a sense it all comes down to this smart contract issue.

cairo is starkware - zk rollups right? it may be the answer but its not ready...

imo, there will be multiple rollups that are connected to each other. not one will win. there are tradeoffs with every solution, but again none are actually ready.