Why Git put objects into directories named with the first two characters of a hash

All Git objects are stored in .git/objects, and opening this folder we will notice file structure like this

.git/objects
├─00
├─01
...

The path for the object with the hash e88f7a929cd70b0274c4ea33b209c97fa845fdbc would be:

  ./git/objects/e8/8f7a929cd70b0274c4ea33b209c97fa845fdbc

Why? The rationale lies in efficiency. Certain file systems are not optimized for handling a large number of files within the same directory.