They fight for network effects against each other. Almost every LN wallet has onchain wallet embedded or able to swap liquidity. Some wallets like Green support sidechain while maintaining connection with Bitcoin network. Even if adoption seems to be low and total network effect is pretty weak, applications on Bitcoin stack tend to re-enforce each other.
I still ask this question: Why Blockstream did not add LN to Green?
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Good question. Most likely different priorities. They have improved this wallet a lot.
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