Ethereum’s L2s attract developers with tools like Arbitrum Nitro and Polygon’s zkEVM, enabling scalable dApps. In 2025, L2s’ ability to process thousands of TPS and reduce fees by up to 95% will drive adoption. Base’s regulatory compliance and Coinbase backing enhance mainstream appeal. However, Solana’s developer growth outpacing Ethereum’s could divert talent. With L2 revenue projected at $10 billion annually, investing in developer-friendly L2s offers strong returns, though investors must monitor competition and potential security risks from newer protocols.