As blockchain adoption accelerates, scalability remains one of the most pressing challenges—especially for Ethereum, the leading smart contract platform. While layer-1 blockchains provide foundational security and decentralization, their limited throughput often results in network congestion and high transaction fees. This is where layer-2 (L2) blockchain solutions step in, offering faster, cheaper, and more efficient alternatives without compromising on security.
Layer-2 protocols operate atop layer-1 networks, offloading transaction processing while inheriting the underlying chain’s security. By leveraging technologies like rollups, sidechains, and state channels, these platforms enhance scalability and user experience. In this guide, we explore the top 10 layer-2 crypto projects poised to lead innovation in 2025.
What Are Layer-2 Blockchains?
Layer-2 refers to secondary frameworks or protocols built on top of a primary blockchain—commonly known as layer-1—to improve performance. These solutions aim to solve bottlenecks related to speed, cost, and scalability. For example, Ethereum handles roughly 15 transactions per second (TPS), which can lead to congestion during peak usage. Layer-2 networks process transactions off-chain and then settle final results back on the mainnet, significantly boosting efficiency.
Popular L2 technologies include:
- Optimistic Rollups: Assume transactions are valid by default and challenge fraud only when detected.
- Zero-Knowledge Rollups (ZK-Rollups): Use cryptographic proofs to validate batches of transactions with minimal data posted on-chain.
- Sidechains: Independent blockchains connected via bridges that run parallel to the main chain.
- State Channels: Enable direct off-chain interactions between parties, with only final outcomes recorded on-chain.
These innovations are driving mass adoption across decentralized finance (DeFi), gaming, NFTs, and beyond.
👉 Discover how layer-2 networks are reshaping the future of digital assets
1. Polygon (MATIC)
Polygon is a leading Ethereum-compatible layer-2 scaling solution designed to create an interconnected ecosystem of blockchains. Originally launched as Matic Network in 2017, it evolved into a comprehensive framework supporting multiple scaling approaches, including Plasma, Optimistic Rollups, and ZK-Rollups.
Developers use Polygon to easily deploy custom blockchains that integrate seamlessly with Ethereum. The platform supports over 28,000 dApps and has processed more than 2.45 billion transactions. Its native token, MATIC, powers staking, governance, and transaction fees.
With strong support from major Web3 projects and enterprises, Polygon continues to expand its footprint in DeFi, NFTs, and enterprise blockchain solutions.
2. Arbitrum
Arbitrum is one of the most widely adopted optimistic rollup solutions for Ethereum. Developed by Offchain Labs, it enhances scalability by batching thousands of off-chain transactions and submitting them as a single proof on Ethereum.
The network hosts major DeFi platforms like Uniswap, GMX, and Aave, with over $3 billion in total value locked (TVL). Its native token, ARB, enables decentralized governance, allowing holders to vote on protocol upgrades and funding allocations.
Arbitrum's bridge simplifies asset transfers between Ethereum and its L2 network, making it accessible for both developers and users.
3. Optimism
Optimism is another top-tier optimistic rollup built to scale Ethereum efficiently. It reduces gas costs by up to 10x while maintaining Ethereum’s security model. Transactions are executed off-chain and periodically verified on the mainnet through fraud proofs.
Home to prominent protocols such as Synthetix and Velodrome, Optimism has secured over $300 million in TVL. The platform emphasizes "minimal viable decentralization," focusing on simplicity and long-term sustainability.
Its ecosystem is further strengthened by the OP token, used for governance and incentivizing community participation.
4. Shibarium
Shibarium is a layer-2 network created specifically for the Shiba Inu ecosystem. Built on Ethereum, it powers the SHIB metaverse, NFT marketplaces, and the upcoming stablecoin SHI.
Designed to reduce high gas fees and slow transaction speeds, Shibarium uses a unique consensus mechanism called Proof-of-Reserve (PoR) to ensure scalability and reliability. As the official L2 for one of the largest meme coin communities, its growth potential is closely tied to expanding use cases within the Shiba ecosystem.
👉 Learn how emerging layer-2 platforms are unlocking new opportunities in crypto
5. Immutable X
Immutable X is a layer-2 platform focused on revolutionizing crypto gaming and NFTs. Using ZK-Rollup technology, it offers near-instant trades, zero gas fees for users, and full Ethereum-level security.
The network supports major games like Gods Unchained and partners with GameStop to power its NFT marketplace. Developers benefit from user-friendly APIs and SDKs that streamline NFT minting and trading.
Immutable X’s success lies in its ability to deliver scalable infrastructure tailored for Web3 gaming—a sector expected to grow exponentially by 2025.
6. zkSync (ZKS)
zkSync is a trustless layer-2 protocol developed by Matter Labs that uses zero-knowledge rollup (ZK-Rollup) technology to scale Ethereum. It ensures fund security through cryptographic proofs while drastically reducing transaction costs.
With full EVM compatibility in zkSync Era, developers can port Ethereum dApps with minimal changes. The ecosystem includes DeFi giants like Curve and Yearn Finance.
zkSync’s vision centers on privacy, scalability, and decentralization—making it a strong contender in the race for mass blockchain adoption.
7. Mantle
Mantle stands out as the first modular layer-2 solution combining data availability, settlement, and execution layers in a flexible architecture. This modularity allows for optimized performance based on specific application needs.
Governed by its native token MNT, Mantle supports decentralized decision-making and incentivizes participation. Despite launching in mid-2023, it quickly amassed a $3.6 billion market cap.
Its innovative approach positions Mantle as a forward-thinking player in next-generation blockchain infrastructure.
8. Loopring
Loopring is a ZK-Rollup-based exchange and payment protocol offering up to 2,025 TPS—far surpassing Ethereum’s base capacity. It combines an order book exchange with an automated market maker (AMM), enabling low-cost trading without gas fees.
The platform’s native token, LRC, is used for protocol fees and staking rewards. With a focus on security and efficiency, Loopring appeals to traders seeking high-performance decentralized exchanges.
9. dYdX
dYdX is a decentralized derivatives exchange that transitioned from on-chain execution to a custom layer-2 solution using StarkEx technology. It specializes in perpetual contracts for assets like ETH, BTC, and LINK.
Known for low fees, fast execution, and no gas costs for users, dYdX attracts active traders globally. Its governance token, DYDX, allows holders to participate in protocol decisions and earn staking yields.
Backed by top investors like Andreessen Horowitz and Polychain Capital, dYdX remains a leader in decentralized finance innovation.
10. SKALE
SKALE takes a unique approach by deploying elastic sidechains—called SKALE Chains—that run parallel to Ethereum. Each chain is customizable for performance, security, and privacy requirements.
Ideal for DeFi apps needing high throughput or NFT platforms requiring privacy features, SKALE gives developers unprecedented flexibility. These chains are fully compatible with Ethereum tools and wallets.
This modular design fosters innovation across diverse Web3 applications.
Frequently Asked Questions (FAQ)
What is a layer-2 blockchain?
A layer-2 blockchain is a secondary protocol built on top of a primary blockchain (like Ethereum) to improve scalability, speed, and cost-efficiency while maintaining the security of the underlying network.
Why are layer-2 solutions important?
They address key limitations of layer-1 blockchains—such as low transaction throughput and high fees—making decentralized applications more accessible and usable for mainstream audiences.
Are layer-2 tokens good investments?
Many L2 projects show strong growth potential due to increasing demand for scalable blockchain solutions. However, like all crypto investments, they carry risks. Always conduct thorough research before investing.
How do ZK-Rollups differ from Optimistic Rollups?
ZK-Rollups use cryptographic proofs to verify transactions instantly, offering faster finality. Optimistic Rollups assume validity by default and rely on challenge periods to detect fraud, resulting in longer withdrawal times.
Can I move assets between Ethereum and layer-2 networks?
Yes—using bridges provided by each L2 platform (e.g., Arbitrum Bridge or zkSync Portal), users can transfer tokens between Ethereum and layer-2 networks securely.
Which layer-2 has the highest adoption?
As of 2025, Arbitrum leads in total value locked (TVL) and developer activity, followed closely by Optimism and Polygon.
👉 Start exploring layer-2 ecosystems and discover next-gen blockchain opportunities
Layer-2 technologies are at the forefront of blockchain evolution. As demand for scalable, affordable, and secure networks grows, these platforms will play a pivotal role in driving Web3 forward. Whether you're a developer building dApps or an investor exploring emerging trends, understanding L2 solutions is essential for navigating the future of decentralized technology.