L2s like Immutable X and Xai target gaming and Web3 applications, offering low-cost, high-speed transactions. In 2025, Immutable’s $2.7 billion market cap and focus on NFT-based gaming make it a standout. Xai’s Layer-3 approach simplifies crypto gaming for users. Rising L2 diversity, with over 100 smaller networks, signals robust growth. However, high token supply (e.g., $100 billion FDV) could pressure prices. Investors should target gaming-focused L2s with strong partnerships, but remain cautious of market saturation and regulatory scrutiny impacting Web3 adoption.