Layer 2 networks are processing significantly more transactions than Ethereum, with a transaction volume 5.19 times higher as of December 23, 2025. These networks boast 10.18 million weekly active addresses, with Arbitrum leading at a 44% market share and $16.7 billion in total value locked (TVL). Base follows with a 33% share and $12.5 billion TVL. Despite this growth, Layer 2 token performance remains under pressure due to fees being primarily paid in ETH and ongoing high inflation. Base generates $185,291 in daily revenue, yet token value capture is limited. Improvement in token performance is anticipated only after the implementation of Dynamic Supply Schedules (DSS), which aims to address current inflationary pressures.