Layer 2 solutions offer a high-risk, high-reward investment opportunity, driven by their ability to scale Ethereum and capture its growing user base. Projects like zkSync and Optimism have demonstrated success with airdrops and developer incentives, boosting their appeal. However, they face stiff competition from Layer 1 blockchains like Avalanche and Near, which provide scalable alternatives without the complexity of additional layers. Layer 2’s investment case is strong if Ethereum remains the preferred platform for dApps, but if Layer 1 competitors gain traction with lower costs and simpler architectures, Layer 2 solutions could struggle to justify their role, making them a speculative yet promising bet.