It's been strange to me how quiet on-chain activity has been for the past six-ish months with so much investor fervor and the grind higher. I can't help wondering if all the transactions that might have happened on-chain are now happening elsewhere, e.g. exchanges, ETF's, bitcoin treasuries, etc.

Are these effectively layer two's? Of course they don't have the same technical properties as a "true" layer two but in practice they seem to achieve the same outcome: managing and consolidating transaction activity efficiently off the main chain.