Ethereum is a layer 1 (L1) blockchain, meaning it is the base of the network itself. Above it, there are protocols and assets that operate on layer 2 (L2) — such as scalability networks (e.g., Arbitrum, Optimism), as well as tokens and dApps built on the Ethereum ecosystem.

I will divide the answer into two parts:

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## 🟢 Part 1: Native Layer 1 Tokens and Projects on Ethereum (L1)

These are the assets that run directly on the Ethereum protocol (base layer):

### 1. ETH (Ether)

- Classification: Native coin / utility token

- Function: Fuel of the Ethereum network; pays fees (gas) and is used for staking after the Merge.

- Token Type: It is not an ERC-20 token, as it is the native currency of the network.

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## 🔵 Part 2: Tokens and Layer 2 (L2) Blockchains and Sidechains

These are projects built on Ethereum, optimized for scalability, speed, and reduced cost.

### ⚙️ L2 Networks (Rollups and others):

Operate with security derived from Ethereum.

#### 1. Arbitrum

- Classification: Optimized Rollup (Optimistic Rollup)

- Token: ARB (governance token)

- Total supply: ~10 billion (inflationary)

#### 2. Optimism (OP)

- Classification: Optimized Rollup

- Token: OP (governance)

- Initial supply: 4.3 billion (controlled by DAO)

#### 3. zkSync Era (does not have its own token yet)

- Classification: ZK-Rollup

- Token: None so far (May 2025)

#### 4. StarkNet

- Classification: ZK-Rollup

- Token: Not yet officially launched (in development)

#### 5. Base (by Coinbase)

- Classification: Optimized Rollup

- Token: Does not have a native token (until May 2025)

#### 6. Linea (by ConsenSys)

- Classification: ZK-Rollup

- Token: In development or recently launched

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### 🔄 Sidechains (not true L2s, but connected to Ethereum):

These are parallel chains with their own consensus mechanisms, but interoperable with Ethereum.

#### 1. Polygon PoS

- Classification: Sidechain

- Token: MATIC

- Function: Used for fees and staking

#### 2. Gnosis Chain

- Classification: Sidechain

- Token: xDAI (stablecoin soft pegged to the dollar)

- Another token: GNOSIS (for auctions and governance)

#### 3. Celo

- Classification: EVM compatible, sidechain

- Main tokens: CELO (governance/staking), cUSD/cEUR (stablecoins)

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## 🧩 Part 3: Standard ERC Tokens (tokens created on Ethereum)

There are thousands, but some of the most famous are:

### Main ERC-20 Tokens:

| Token | Name | Classification |

|-------|------|---------------|

| USDT | Tether | Stablecoin |

| USDC | USD Coin | Stablecoin |

| DAI | DAI | Decentralized stablecoin |

| UNI | Uniswap | Governance |

| LINK | Chainlink | Oracle infrastructure |

| AAVE | Aave | DeFi/lending |

| CRV | Curve Finance | DeFi/liquidity pools |

| MKR | MakerDAO | Governance and DAI stabilization |

| SUSHI | SushiSwap | Governance and decentralized exchange |

| COMP | Compound | Governance and DeFi |

| BAL | Balancer | Governance and AMM |

| YFI | Yearn.finance | DeFi yield aggregator |

| SNX | Synthetix | DeFi/synthetics |

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## 📌 Layer Summary

| Layer | Type | Examples |

|--------|------|----------|

| L1 Ethereum | Base blockchain | ETH |

| L2 (Rollups) | Scalability | Arbitrum, Optimism, zkSync, StarkNet |

| Sidechains | Parallel chains | Polygon PoS, Gnosis Chain |

| ERC Tokens | Assets on Ethereum | USDT, DAI, UNI, LINK, AAVE, etc. |