The Ethereum Layer 2 (L2) ecosystem in 2025 is poised for significant investment potential, driven by the need for scalable, low-cost solutions amid growing DeFi, NFT, and Web3 adoption. Arbitrum leads with a Total Value Locked (TVL) of approximately $3.9 billion and 1.2 million daily transactions, benefiting from its early-mover advantage and deep integration with major DeFi protocols like Uniswap and Aave. Its Arbitrum Virtual Machine (AVM) and Nitro upgrade enable high throughput and low fees, making it attractive for developers and investors seeking stable, mature ecosystems. Optimism, with a TVL of around $6 billion, excels through its Superchain concept, fostering interoperability among L2s like Base and Zora, which enhances its appeal for innovative projects. Investors may favor Arbitrum for its established liquidity and developer base,