Blockchain technology has evolved significantly since its inception in 2008, transitioning from a decentralized payment network to a foundational technology for applications like DeFi, GameFi, NFTs, the metaverse, and Web3. As adoption grows, scalability remains a critical challenge. While Ethereum and Bitcoin serve as vital Layer-1 networks, their limited throughput—7 TPS for Bitcoin and 15 TPS for Ethereum as of 2025—pales in comparison to traditional systems like VISA, which handles approximately 1,700 TPS.
This article explores how Layer-2 solutions enhance blockchain throughput, highlights the most promising Layer-2 projects in 2025, and examines their role in addressing the blockchain trilemma (scalability, security, decentralization).
What Are Layer-2 Protocols in Crypto?
Layer-2 solutions are scaling protocols built atop Layer-1 blockchains (e.g., Ethereum) to improve performance and scalability. By processing transactions off-chain and submitting summarized data to the main chain, they reduce congestion, lower fees, and increase throughput.
How Do Layer-2 Solutions Work?
Layer-2 networks operate via off-chain transaction processing:
- Transactions are batched and processed separately.
- Only final proofs or summaries are added to the main chain.
This approach minimizes congestion, accelerates processing, and slashes costs.
👉 Discover how Layer-2 networks achieve 4,000+ TPS
Types of Layer-2 Solutions
1. Optimistic Rollups
- Assume transactions are valid unless challenged.
- Reduce verification overhead, enabling faster processing.
2. Zero-Knowledge Rollups (zkRollups)
- Bundle transactions into a single cryptographic proof.
- Offer privacy and scalability with minimal main-chain strain.
3. Ethereum Plasma Chains
- Specialized sidechains for faster, cheaper transactions.
- Distinct from rollup-based solutions.
4. Validium
- Off-chain validation with cryptographic security.
- Ideal for high-throughput applications.
Top 10 Layer-2 Networks by Market Cap (2025)
1. Mantle
- Modular L2 stack for Ethereum scalability.
- DAO-governed with native token MNT for fees and governance.
2. Orderly Network
- OP Stack-based shared orderbook for cross-chain trading.
- Key for DeFi and decentralized exchanges (DEXs).
3. Arbitrum
- Processes 4,000 TPS with 95% lower gas fees.
- Dominates 51% of Ethereum L2 TVL.
4. Polygon
- Multichain ecosystem with 65,000 TPS.
- Supports zkRollups and PoS consensus.
👉 Explore Polygon’s DeFi ecosystem
5. Optimism
- Achieves 4,000 TPS via Optimistic Rollups.
- Self-governing community with strong DeFi/NFT integration.
6. Base
- Coinbase’s L2 with 2,000 TPS and 95% fee reduction.
- Built on OP Stack.
7. Immutable X
- Web3 gaming focus with 4,000 TPS.
- Zero gas fees for NFT minting.
8. Myria
- Leverages ZK-Rollups for 9,000 TPS.
- Ethereum-secured NFT trading.
9. zkSync Era
- Zero-knowledge tech for scalable, low-cost transactions.
- Preserves Ethereum’s decentralization.
10. Starknet
- Uses STARK proofs for millions of TPS.
- Developer-friendly with Cairo programming.
FAQ
1. What is Layer-2 scaling?
Solutions to enhance blockchain throughput by processing transactions off-chain.
2. Why are Layer-2 networks crucial?
They enable faster, cheaper transactions, making dApps viable for mass adoption.
3. How were these top 10 selected?
Based on innovation, adoption, TVL, and ecosystem growth.
4. Are Layer-2 solutions interoperable?
Many support cross-chain functionality (e.g., Orderly Network).
5. What risks exist with Layer-2 investments?
Regulatory uncertainty, technical vulnerabilities, and competition.
Conclusion
Layer-2 protocols are transformative, addressing scalability while maintaining security and decentralization. From Arbitrum’s DeFi dominance to Starknet’s STARK proofs, these networks are paving the way for blockchain’s future—proving it can be fast, affordable, and accessible.
Key Takeaways:
- Layer-2 solutions reduce fees and increase TPS.
- Top projects include Arbitrum, Polygon, and zkSync Era.
- Interoperability and innovation drive adoption.