: Ethereum’s L2s are pivotal for DeFi and NFT growth in 2025, with TVL in DeFi nearing $200 billion. Arbitrum’s 4,000 TPS and Base’s developer-friendly environment attract dApps, boosting token utility (e.g., ARB, OP). The Pectra upgrade in March 2025 will enhance user experience, potentially increasing L2 adoption. However, declining Ethereum mainnet fees signal reduced L1 demand, which could impact ETH’s value and indirectly affect L2s. Investors should target L2s with diverse dApp ecosystems and strong governance models, but remain cautious of market corrections and interoperability challenges.