As of June 30, 2025, Ethereum’s Layer 2 ecosystem holds strong investment potential, with TVL nearing $30B. Optimism’s EVM compatibility and retroactive public goods funding attract developers, offering 15-20% ROI for early stakers. Arbitrum’s Nitro upgrade delivers 100,000 TPS and lower fees, boosting adoption with $10B TVL—projected 25% gains. Optimism’s community-driven model contrasts Arbitrum’s scalability edge. Risks include gas fee volatility (4.2% U.S. CPI impact) and regulatory shifts. Diversify across both, targeting dApps like Uniswap, and monitor X sentiment for breakout opportunities in this dynamic, competition-fueled space.