The investment logic for Layer 1 and Layer 2 differs. Ethereum, a Layer 1 blockchain, has a large and established ecosystem with a wide range of applications. It offers high security and decentralization but faces challenges such as high transaction fees and scalability issues. Layer 2 networks like Arbitrum and Optimism aim to solve these problems by providing lower transaction fees and higher throughput while still relying on the security of the underlying Layer 1. Investors need to consider factors such as the growth potential of the ecosystem, the level of decentralization, and the ability to handle future scalability requirements when choosing between Layer 1 and Layer 2 investments.