Why do people expect the prices of layer 2 solutions to go up, if the point of layer 2 is to increase efficiency?

That is, isn't the utility of any layer 2 actually capped or at least inversely related to its price?

Why do people think a particular project will "moon", if that means it would be too expensive for a real-world use?

And isn't there enough competition in the layer 2 space to drive the transaction costs to zero?

Sorry for my ignorance.