investment potential in 2025 hinges on Ethereum’s ecosystem growth, but regulatory risks persist. Stricter crypto laws could deter institutional investment, impacting L2 token prices. Arbitrum and Polygon’s established ecosystems offer stability, with TVL growth signaling user trust. The Dencun upgrade reduced L2 fees, boosting adoption, but declining L1 activity may signal waning ETH demand. Investors should focus on L2s with diversified use cases and strong community governance, while remaining cautious of macroeconomic factors and market volatility that could trigger price corrections.