The blockchain landscape is continuously evolving, and Layer 2 (L2) networks have become essential for scaling base layer blockchains like Ethereum, Bitcoin, and Solana. These protocols process transactions off the main chain, significantly reducing fees and congestion while inheriting the security of the underlying Layer 1.
Selecting the right L2 requires careful analysis of technology, user activity, fees, total value locked (TVL), and developer activity. This guide explores the top-performing Layer 2 networks across major blockchains, providing the key metrics and insights you need to understand the current ecosystem.
Top Layer 2 Networks by Blockchain
The following analysis covers leading L2 solutions, highlighting their unique technological approaches and on-chain performance.
1. Base
Base is an Ethereum Layer 2 network developed by Coinbase. It leverages the OP Stack to provide a developer-friendly environment with ultra-low transaction costs and a user experience that feels nearly identical to Ethereum itself.
The network supports advanced features like account abstraction, smart wallets, and gasless transactions, which dramatically streamline user interactions. It boasts one of the largest developer communities in North America, a key indicator of its long-term growth potential.
Powered by Coinbase's trusted infrastructure, Base simplifies the process of moving assets from Ethereum and other chains. Its promise of one-second finality at a fraction of a cent positions it as a major contender for onboarding the next wave of users to web3.
- Primary Chain: Ethereum
- Key Technology: OP Stack Rollup
- Average Transaction Fee: ~$0.004
- Notable Protocols: Aerodrome (DEX), Morpho Blue (Lending), Pendle (Yield)
2. Arbitrum
Arbitrum is a leading Ethereum scaling solution that uses optimistic rollup technology. It batches hundreds of transactions together before submitting them to Ethereum, drastically lowering costs and computational load for users.
A key innovation is the Orbit chains framework, which allows projects to launch their own dedicated Layer 3 chains. These L3s can be customized for specific security and cost requirements, offering developers unprecedented flexibility.
With a massive TVL and a diverse array of DeFi applications, from decentralized exchanges to yield aggregators, Arbitrum remains a dominant force in the L2 landscape. Its ARB token is used for community governance of the ecosystem.
- Primary Chain: Ethereum
- Key Technology: Optimistic Rollups, Orbit L3s
- Average Transaction Fee: ~$0.005
- Notable Protocols: Aave (Lending), GMX (Derivatives), Uniswap (DEX)
3. Optimism
Optimism is pioneering the "Superchain" vision—a interconnected network of Layer 2 chains that share security, a bridging protocol, and a governance system. This collective aims to create a unified and scalable ecosystem rather than a series of isolated chains.
The upgrade path involves evolving its core bridge into a "chain factory" to deploy new OP Chains easily. Future improvements will also introduce permissionless withdrawals and modular sequencing, enabling true horizontal scaling across many chains.
By providing developers with standardized tooling, the Optimism Superchain framework makes building cross-chain decentralized applications (dApps) more accessible. This represents a significant step toward a scalable, decentralized future for web3.
- Primary Chain: Ethereum
- Key Technology: Superchain Architecture, OP Stack
- Average Transaction Fee: ~$0.001
- Notable Protocols: Synthetix (Synthetics), Velodrome (DEX), Compound (Lending)
4. Stacks
Stacks is a Bitcoin Layer 2 that brings smart contracts and decentralized applications to the Bitcoin ecosystem. It operates independently but ultimately settles all transactions on the Bitcoin blockchain, preserving its core security and decentralization.
Its major Nakamoto Upgrade decouples block production, slashing transaction confirmation times to mere seconds. This upgrade also enhances its anchor to Bitcoin, improving security and resistance to chain reorganizations.
A central feature is sBTC, a 1:1 pegged Bitcoin representation on the Stacks chain. This allows BTC holders to participate in DeFi—like lending and trading—without ever leaving the security of the Bitcoin ecosystem.
- Primary Chain: Bitcoin
- Key Technology: Bitcoin-linked Smart Contracts
- Average Transaction Fee: ~$0.23
- Notable Protocols: Zest (Lending), StakindDAO (Liquid Staking), ALEX (DEX)
5. Eclipse
Eclipse is a unique hybrid Layer 2 that settles on Ethereum but uses the Solana Virtual Machine (SVM) for execution. This design aims to combine Ethereum's robust security with Solana's high-speed parallel processing capabilities.
It employs a modular architecture: it uses ETH for gas, posts data to Celestia for scalable data availability, and uses RISC Zero for zero-knowledge fraud proofs. A built-in validating bridge ensures accurate transaction ordering and censorship resistance.
Eclipse supports Ethereum Virtual Machine compatibility through various tools, making it accessible to a broad developer audience. Its design incorporates local fee markets and efficient state management, positioning it as a top hybrid scaling solution. 👉 Explore more strategies for cross-chain execution
- Primary Chain: Ethereum / Solana
- Key Technology: Solana VM, Modular Stack
- Average Transaction Fee: ~$0.001
- Notable Protocols: Orca (DEX), Save (Lending), Astrol (Lending)
Understanding Layer 2 Fundamentals
What is an Ethereum Layer 2?
An Ethereum Layer 2 is a separate protocol built on top of the Ethereum mainnet. It processes transactions off-chain before bundling and submitting the final data back to Layer 1. This approach massively improves scalability and reduces user fees while still leveraging Ethereum's proven security.
There are two primary types of rollups, which are the most common L2 technology:
- Optimistic Rollups: Assume transactions are valid by default. They use a challenge period during which fraudulent transactions can be disputed with fraud proofs. Examples include Arbitrum, Optimism, and Base.
- ZK Rollups: Use zero-knowledge cryptography to generate a cryptographic proof for each transaction batch, validating correctness instantly without a challenge period. Examples include zkSync, Starknet, and Polygon zkEVM.
What is a Bitcoin Layer 2?
A Bitcoin Layer 2 is any protocol built atop Bitcoin that extends its functionality. These networks aim to increase transaction throughput, enable smart contracts, or facilitate micropayments, all while deriving their ultimate security from the Bitcoin blockchain.
Popular types of Bitcoin L2s include:
- Payment Channels: Like the Lightning Network, which enables instant, low-fee micropayments off-chain.
- Sidechains & Smart Contract Platforms: Like Stacks, which enable complex applications that settle on Bitcoin.
- Hybrid Rollups: Newer solutions like BOB and Merlin Chain that use rollup technology to scale Bitcoin.
What is a Solana Layer 2?
A Solana Layer 2 is a scaling solution designed to alleviate congestion on the Solana mainnet. These can be rollups that batch and settle data on Solana, or they can be "appchains"—application-specific chains that fork Solana's code for custom use cases.
The goal of these networks is to leverage Solana's high-speed Virtual Machine (SVM) while processing transactions off the main chain. This is particularly valuable during periods of extreme network demand, such as during viral meme coin launches, ensuring a smooth user experience. 👉 Get advanced methods for managing network congestion
Frequently Asked Questions
What is the main purpose of a Layer 2 network?
The primary purpose of a Layer 2 is to scale its parent blockchain. By handling transactions off the main chain, L2s significantly increase transaction throughput (TPS) and reduce fees for users, all while maintaining the security guarantees of the underlying Layer 1.
How do I choose which Layer 2 to use?
Your choice depends on your priorities. Consider the ecosystem of applications you want to use, the cost of transactions, the security model, and which primary blockchain (e.g., Ethereum, Bitcoin) you prefer to hold assets on. Reviewing TVL and user activity can also indicate a healthy ecosystem.
Are Layer 2 networks secure?
Yes, the security of most major L2s is ultimately derived from their Layer 1 blockchain. They use cryptographic techniques like fraud proofs or validity proofs to ensure that off-chain activity is correct before finalizing it on the main chain, making them highly secure.
What is the difference between a sidechain and a Layer 2?
A sidechain is a separate blockchain with its own validators and security model that is connected to a mainnet via a bridge. A true Layer 2 does not have its own consensus; it derives its security directly from the Layer 1 it settles onto, making it generally more secure than a sidechain.
Can Layer 2 networks communicate with each other?
Direct communication between L2s can be complex, but cross-chain bridges and interoperability protocols are rapidly improving. Projects like the Optimism Superchain are specifically designed to make communication between chains in its ecosystem seamless.
Do all Layer 2 networks have their own token?
Not all of them. Some, like Base, currently operate without a native token. Others, like Arbitrum (ARB) and Optimism (OP), have tokens that are primarily used for governance, allowing holders to vote on the future development of the network.
Final Thoughts
The development of Layer 2 networks is a critical evolution in blockchain technology. Ethereum's L2 ecosystem is maturing rapidly, offering users a wide array of low-cost, high-speed alternatives for DeFi and other applications.
Simultaneously, Bitcoin L2s are unlocking new functionality like smart contracts for the world's oldest blockchain, while Solana L2s are emerging to tackle its unique congestion challenges.
This diversified approach underscores that the future of blockchain is multi-chain. There is no single scaling solution that fits every need. Instead, a vibrant ecosystem of interconnected Layer 1s and Layer 2s will provide users with the choice, flexibility, and performance required for mass adoption.