The investment potential of Ethereum’s L2 ecosystem in 2025 is bolstered by its ability to process millions of transactions daily at a fraction of mainnet costs, driven by upgrades like EIP-4844 (proto-danksharding). Arbitrum dominates with over 3 million active wallet addresses and a 200% user base growth in 2025, fueled by its robust DeFi ecosystem and partnerships with protocols like GMX. Its faster block times and higher transaction volume rnance and public goods funding, balancing exposure to both networks’ growth.