Ethereum Layer 2 solutions (e.g., Optimism, Arbitrum) offer lucrative investment opportunities by addressing L1’s scalability bottlenecks. With fees 100x lower and speeds up to 4,000 TPS, L2s attract DeFi users and NFT creators. Projects like Base (Coinbase’s L2) and zkSync Era are onboarding millions of new users, driving 300%+ YoY growth in L2 TVL ($28B in 2025). Contrary to competition, L2s complement L1 by acting as "execution layers," while Ethereum remains the settlement and security backbone. This symbiosis boosts ETH’s utility, as 75% of L2 transactions ultimately settle on L1. Investors should focus on L2s with strong developer ecosystems and clear tokenomics, as they’ll dominate the $100B+ scaling market while reinforcing Ethereum’s long-term dominance.