The approval of Ethereum ETFs and institutional interest in 2025 could propel L2 ecosystems. L2s like Polygon and Base reduce transaction costs by up to 95%, making them attractive for enterprise applications. Polygon’s focus on tokenizing real-world assets and its POL token governance enhances its appeal. Yet, market volatility and potential regulatory crackdowns could dampen enthusiasm. With L2s projected to reach a $1 trillion valuation by 2030, early investments in established L2s with robust communities offer high potential, though diversification is key to mitigate risks from emerging competitors.