What layer-2 means
A layer-2 is a network or execution environment built to scale activity around Ethereum while posting or settling data back to Ethereum under specific assumptions.
Market impact
Layer-2 growth can affect ETH demand, app fees, token launches, bridge flows, and DeFi liquidity.
What to watch next
Watch transaction counts, fees, sequencer decentralization, bridge incidents, data availability costs, app traction, and upgrade timelines.