Ethereum's Layer 2 scaling solutions, like rollups and sidechains, significantly alleviate network congestion by processing transactions off-chain while leveraging Ethereum's security. Rollups bundle transactions, reducing mainnet load, lowering fees, and increasing throughput. Sidechains offer faster, cheaper transactions with periodic mainnet synchronization. These solutions enhance scalability, making Ethereum more efficient for users and dApps, though challenges like interoperability and user adoption remain.