Definitely, in v3 most of the liquidity comes from concentrated positions. LPs willing to concentrate their capital more "outcompete" LPs spreading out their capital in full range positions.

Narrow-range positions obviously have higher fees but also higher LVR and other risks.

But V2 also competes with them. If the routing, integration, and gas costs were the same for v2 as for v3, then a full-range v3 position would have exactly as much volume as a full-range v2 position for the same pair.