Layer 2 blockchains act like turbochargers for Ethereum, boosting speed and cutting costs. They process transactions off-chain, then settle them securely on Ethereum. This setup drastically improves efficiency.
While Ethereum handles around 30 transactions per second with high fees, Layer 2 solutions manage hundreds or thousands at a fraction of the cost. Mantle processes 500 TPS with 10ms blocks, while zk-rollups offer near-instant confirmations.
These gains have made Layer 2s essential, powering DeFi, NFT markets, gaming, and Web3 apps. By 2025, competition among them is intense, with each offering unique advantages. Choosing the right Layer 2 is now a key move for developers, investors, and users shaping the future of Web3.
Mantle
Mantle is a Layer 2 blockchain built on Ethereum, using optimistic rollups to scale transactions. It is fully EVM-compatible, so developers can deploy apps without rewriting code. Its modular design separates execution, settlement, and data availability, making it faster and cheaper than Ethereum.
Transactions execute on Mantle, settle on Ethereum, and EigenLayer’s EigenDA stores data. This setup cuts costs while boosting performance. Mantle uses MPC nodes to verify blocks, reducing the standard seven-day challenge period to just one or two days. It claims speeds of 500 TPS with 10ms block times, far above Ethereum’s 32 TPS.
The network also features its own canonical bridge, avoiding third-party risks. Backed by BitDAO and a $200 million development fund, Mantle supports dApps, DeFi protocols, and Web3 projects. Since its mainnet launch in July 2023, it has processed thousands of daily transactions.
By combining Ethereum’s security with high throughput and low fees, Mantle delivers a scalable, user-friendly solution for developers and users looking to build and interact with the next generation of decentralized apps.
Base
Base is an Ethereum Layer 2 network built by Coinbase to tackle Ethereum’s scaling problems. It uses optimistic rollups to process transactions off-chain and settle them on Ethereum, cutting fees to just a few cents and improving speed. This makes Base appealing to both users and developers frustrated with high gas costs.
Launched in 2023, Base focuses on driving DeFi adoption and making blockchain easier to use. It integrates with Coinbase services, offering smooth asset management and DApp interaction. The network also supports NFTs, gaming, and a range of Web3 applications.
Built on the OP Stack – the same tech as Optimism – Base is fully EVM-compatible, allowing Ethereum apps to migrate effortlessly. Developers gain tools, incentives, and a secure bridge for asset transfers. Its Basenames feature simplifies wallet use, enhancing user experience.
Base competes with other Layer 2s like Arbitrum and Polygon. Some critics raise concerns about centralization under Coinbase and possible regulatory risks.
Despite this, Base’s low fees, fast performance, and strong backing position it as a key player in scaling Ethereum. It offers a simple, cost-effective gateway to Web3, making it one of the most promising Layer 2 solutions today.
Polygon
Polygon is a Layer 2 solution built on Ethereum to deliver fast, low-cost transactions. It runs as a parallel chain, processing activity off Ethereum while still using its security. This makes it a strong choice for DeFi, NFTs, and Web3 apps needing speed and efficiency.
Launched in 2017 as Matic Network, it rebranded to Polygon in 2021. Its token, MATIC – transitioning to POL – is used for fees, staking, and governance. Holders stake tokens to secure the network and earn rewards, while validators confirm transactions.
Polygon uses proof-of-stake to keep fees under a cent and supports thousands of transactions per second, far above Ethereum’s base layer. Its EVM compatibility allows developers to migrate Ethereum apps easily to a faster environment. Users can bridge assets and access protocols like Aave, SushiSwap, and OpenSea at low cost.
Though it relies on Ethereum for security, Polygon has grown into a leading scaling solution. With the shift to POL tokens and expanding Web3 initiatives, it continues to strengthen its ecosystem and drive mass blockchain adoption.
Arbitrum
Arbitrum is a Layer 2 solution that boosts Ethereum’s speed and lowers costs. It uses optimistic rollups to process transactions off-chain and send them back to Ethereum in batches. This cuts congestion, reduces gas fees, and keeps Ethereum’s security intact.
Optimistic rollups assume transactions are valid unless challenged. Fraud proofs handle disputes, allowing the network to process thousands of transactions cheaply. Developers can deploy Ethereum-compatible smart contracts directly on Arbitrum, supporting dApps in DeFi, NFTs, gaming, and payments without changes.
The ARB token powers the ecosystem. It pays fees, enables staking, and gives holders voting rights in governance. Validators keep the network secure, while the sequencer orders transactions efficiently.
Arbitrum offers several products. Arbitrum One supports secure dApps. Nitro improves performance. Nova uses AnyTrust to deliver lower fees and faster transactions.
Launched in 2021 by Offchain Labs, Arbitrum quickly became one of the most popular Layer 2 networks. Backed by strong investors and run by a DAO, it keeps expanding.
Optimism
Optimism is a Layer 2 solution that speeds up Ethereum transactions while cutting costs. It uses optimistic rollups, which process transactions off-chain and then send them to Ethereum for validation. This reduces congestion, lowers gas fees, and scales the network efficiently.
The network is fully compatible with the Ethereum Virtual Machine, so developers can migrate apps without rewriting code. Users can access DeFi protocols, mint NFTs, and use dApps at much lower fees.
The OP token powers Optimism. It covers fees, drives participation, and allows holders to vote on governance proposals. This gives the community control over the platform’s future.
Launched in 2021 by the Optimism Foundation, the project grew out of the Plasma Group research initiative. It also funds public goods through retroactive grants, supporting broader Ethereum development.
Optimism’s OP Stack lets developers create custom chains that share Ethereum’s security. Its long-term goal is the Optimism Superchain, a network of Layer 2s with shared security and seamless communication.
Stacks
Stacks (STX) is a Layer 2 network that brings smart contracts and dApps to Bitcoin. Unlike other platforms, it uses Bitcoin as its settlement layer, combining Bitcoin’s security with programmability. Developers can build DeFi apps, NFTs, and Web3 services that directly interact with Bitcoin.
Launched in 2017 and upgraded with Stacks 2.0 in 2021, it introduced Clarity, a language designed for safe and predictable smart contracts. The network uses Proof of Transfer (PoX), where Bitcoin miners transfer BTC to stackers for a chance to earn STX rewards. Stackers lock their STX and receive BTC payouts, linking both chains economically.
The upcoming Nakamoto Fork will cut block times to a few seconds while keeping Bitcoin-level security. STX powers transactions, dApps, and governance, while also rewarding miners and stackers. Users can store it securely in hardware wallets like Ledger.
Immutable X
Immutable X (IMX) is a Layer 2 network built to scale Ethereum for NFTs and blockchain gaming.
Created by Immutable, it delivers fast, gas-free transactions while keeping Ethereum-level security. Using StarkWare’s zk-rollups, it batches thousands of trades off-chain and verifies them on Ethereum, cutting costs and boosting speed.
The platform makes NFT minting and trading easy for game developers. Popular titles like Gods Unchained and Guild of Guardians use Immutable X to create and trade NFTs instantly. Developers benefit from tools like the Immutable SDK, while users enjoy seamless in-game asset transfers.
IMX is the native token, powering protocol fees, staking, and governance. Traders pay fees in IMX, creators set royalties, and stakers earn rewards from protocol fees.
With carbon-neutral technology, low fees, and high scalability, Immutable X is becoming a key player in Web3 gaming. Strategic partnerships and a growing list of games strengthen its position.
Starknet
Starknet is an Ethereum Layer 2 built by StarkWare Industries to make transactions faster and cheaper while keeping Ethereum’s security. It uses zk-STARK proofs, which are trustless, scalable, and don’t need a centralized setup – making it safer than older zk-rollups that rely on zk-SNARKs.
Transactions run off-chain through sequencers and provers. Sequencers group transactions into blocks, and provers generate a STARK proof to validate them. This proof is sent to Ethereum as one transaction, bundling thousands at once. Ethereum verifies the proof, updates Starknet’s state, and finalizes data securely.
Developers build dApps on Starknet using Cairo, a custom language designed for scalability. Fees were first paid in ETH but now use the STRK token. STRK also powers governance, letting holders vote on network upgrades, and will support staking when Starknet moves to Proof of Stake.
Launched in 2021, Starknet has grown into one of the top zk-rollup solutions. It lowers gas fees, increases throughput, and offers a powerful environment for Web3 development. With STRK driving fees, governance, and staking, Starknet aims to make Ethereum more efficient for both users and developers.
ZKSync
ZKsync is a Layer 2 scaling solution that makes Ethereum transactions faster and cheaper. It uses zk-rollups, which bundle thousands of transactions off-chain and send them to Ethereum as a single batch. This reduces congestion and lowers gas fees while keeping Ethereum’s security.
The system relies on zero-knowledge proofs (ZKPs). These proofs confirm transactions are valid without revealing details, improving privacy and speeding up settlement. Unlike optimistic rollups, which need a long challenge period, ZKsync finalizes transactions right after verification.
ZKsync is fully EVM-compatible, so developers can move Ethereum apps to it without changing code. This makes scaling easy and accessible. Users enjoy cheaper fees, while developers can reach more users.
The ZK token powers governance and pays fees. Holders vote on proposals, shaping the network’s future. An airdrop gave 17.5% of the supply to active users and contributors, rewarding early engagement.
With zk-rollups, instant settlements, and tools for developers, ZKsync offers a fast and secure way to scale Ethereum. Its strong tech and growing adoption place it among the most promising Layer 2 solutions.
Movement Network
Movement Network is building a system that connects blockchains, removing the barriers that keep them isolated. It enables smooth cross-chain communication and transactions, improving scalability and letting developers create complex apps without worrying about differences between chains.
At its core is the Movement SDK, a universal toolkit that works as a translator for blockchains. It supports networks like Ethereum and is compatible with the Ethereum Virtual Machine. Developers can build cross-chain apps without learning new systems. The SDK also runs on MoveVM, a secure virtual machine based on Meta’s Move language, giving stronger security and efficient asset handling.
Custom adaptors let the SDK interact with sequencer networks and data layers such as Celestia and EigenDA. This ensures fast, secure transactions and streamlined data use. Movement also offers Move Rollups for custom Layer 2 solutions and uses a Decentralized Shared Sequencer for fair transaction ordering.
The MoveDrop Parthenon program rewards users and developers who contribute and test the ecosystem. With these tools, Movement simplifies blockchain development, making apps faster, safer, and more inclusive. It creates the foundation for scalable innovation across the crypto space.
