Are layer 2 solutions needed?

Hey guys! First of all I am still new to ETH so I am sorry if this question is silly :).

I recently have been discovering ETH and all the ecosystem as well as some of its flaws, namely scaleability while ETH 2.0 is not rolled out completely and I realized there are a bunch of projects that are L2 and allow for thousands of transactions for a reduced gas fee.

Projects like Loopring, for example, which is the one I know better, they actually solve an issue, at least for the time being right? If so, why are these projects not growing in MC that much when compared to other alt coins?

Thanks in advance and appreciate anyone that can give me some ideas 🙂