Ethereum’s Layer 2 (L2) adoption, with 13.6 million unique addresses and a 74% weekly growth in 2025, significantly enhances its ecosystem’s scalability, potentially driving a price breakout. L2s like Base, contributing 67% of transaction throughput, lower fees to under $0.10, boosting DeFi and NFT usage, per Cointelegraph. Historically, 2023’s L2 surge preceded ETH’s $3,900 peak. However, reduced mainnet fees cut ETH burns, capping deflationary pressure at $1,600, as noted by @ETH5200 on X. While L2 adoption fuels demand, Solana’s competition and tariff risks may delay a breakout unless interoperability improves.