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Ethereum Layer 2 solutions present investment opportunities by capturing transaction fees, sequencer revenue, and ecosystem growth as Ethereum demand scales beyond Layer 1 capacity. As rollups and other L2s absorb most user activity, value increasingly accrues to networks that offer lower fees and better user experience while still inheriting Ethereum’s security. This creates a competitive dynamic where L2s do not replace Layer 1, but compete for economic relevance and mindshare within the same Ethereum-centered ecosystem.