The Ethereum Layer 2 ecosystem presents significant investment potential in 2025. Its primary value lies in addressing Ethereum’s Layer 1 scalability issues while maintaining decentralization and security. Layer 2 solutions process transactions off-chain and submit results to the main chain, drastically improving transaction efficiency and reducing costs. Total Value Locked (TVL) in Layer 2 solutions has surpassed $28 billion, a fivefold increase from early 2023, indicating a rapidly growing market demand.