What is the Layer 2 solution?

Layer 2 solutions process transactions off the main blockchain (Layer 1) to reduce congestion and gas fees while maintaining security. Common L2 methods include Rollups (optimistic and zero-knowledge) and state channels. By 2025, L2 is expected to handle over 60% of Ethereum's transaction volume, with a total locked value (TVL) exceeding $400 billion. These projects are crucial for scaling Web3 to billions of users.

Top Layer 2 projects worth following in 2025

Arbitrum

Overview: Arbitrum, developed by Offchain Labs, is the leading optimistic rollup solution for Ethereum, with a TVL of $18 billion in 2025. It offers low-cost, EVM-compatible transactions.
Key Features:

• scalability: The process can reach up to 40,000 TPS at most.

• Ecosystem: Hosting major dApps such as Uniswap, Aave, and GMX.

• ARB token: Used for governance and staking.

• Arbitrum OrbitEnable custom L3 chain for custom application.

Why watch: Arbitrum's Stylus upgrade, supporting Rust and C++, expanding accessibility for developers, driving enterprise adoption.
Optimism

Overview: Optimism, another optimistic Rollup, driving Ethereum dApps with a TVL of $9 billion. It emphasizes open-source development and community governance.
Main features:

• EVM Equivalence: Seamless integration with Ethereum tools.

• OP Stack: Framework for building custom L2 and L3 chains.

• OP TokenPromote decentralized governance.

• Ecosystem: Supports the base chains of Synthetix, Velodrome, and Coinbase.

Why watch: Optimism’s Bedrock upgrade and cross Layer 2 interoperability initiatives make it poised for growth in DeFi and gaming.
zkSync

Overview: zkSync, developed by Matter Labs, uses zero-knowledge Rollups (zk-Rollups) to achieve scalable, low-cost Ethereum transactions. The TVL of its zkSync Era mainnet is $5 billion.
Key Features:

• High throughput: Up to 20,000 TPS, with fees as low as sub-penny.

• Privacy: Supported by zk-SNARKs for private transactions.

• Ecosystem: Including over 200 dApps such as Chainlink and Curve.

• Local Account Abstraction: Simplify user onboarding.

Why watch: The rumored ZKS token airdrop and enhanced developer tools propel zkSync to the forefront by 2025.
StarkNet

Overview: StarkNet, built by StarkWare, uses zk-STARKs for scalable, transparent Ethereum transactions. Its TVL exceeds $3 billion, driven by DeFi and NFT platforms.
Key Features:

• ScalabilityCan process millions of TPS without the need for trust setup.

• Cairo language: Optimize ZKP-based computation.

• Application: Powers dYdX and Immutable X.

• STRK token: For governance and fees.

Why follow: Shardings and recursive proof of StarkNet will unlock enterprise use cases in 2025.
Polygon zkEVM

Overview: Polygon zkEVM, as part of the Polygon scalability suite, combines Ethereum compatibility with zk-Rollup efficiency. With a TVL of $2 billion, it has garnered support from the Polygon DeFi ecosystem.
Main features:

• EVM Equivalence: Support existing Ethereum dApps.

• Low cost: Trading costs are only a few hundredths of a cent.

• Ecosystem: Integrating with Polygon's $1 billion NFT and gaming market.

• MATIC token: Governance and staking.

Why watch: Polygon zkEVM's collaboration with gaming studios and supply chain companies is driving widespread adoption.

Why Layer 2 projects are important

The L2 solution addresses the scalability bottleneck of Ethereum, where mainnet transaction fees once reached as high as $100 per transaction. By batching transactions off-chain, L2 can reduce costs by as much as 90% and increase throughput, achieving:

• DeFi growth: Affordable borrowing, trading, and liquidity mining.

• NFT Accessibility: Low-cost minting and trading for artists and collectors.

• GameProvide fast, scalable transactions for blockchain games.

• Enterprise Application Cases: Supply chain tracking and private financial solutions.

By 2025, L2 is building a bridge between Web2 and Web3, attracting institutional and retail users.

Challenges faced by Layer 2 projects

Despite the promises, L2s face obstacles:

• Interoperability: Better standardization is needed for cross-Layer 2 asset transfers.

• Security: Rollup contract is a potential attack vector; auditing is crucial.

• User ExperienceBridging assets and managing L2 wallets can be complex.

• Centralization riskSome Layer 2 relies on limited sequencers or validators.

The project is addressing these issues through decentralized sequencers (such as Arbitrum's AnyTrust) and user-friendly interfaces.

Opportunities in the Layer 2 ecosystem

1. Investment: Stake ARB, OP, or MATIC tokens for governance and rewards.

2. Airdrop: Interacting with zkSync or StarkNet may result in token airdrops.

3. development: Building dApps with Stylus from Arbitrum or Cairo from StarkNet for low-cost deployments.

4. DeFi participation: Provide liquidity on Velodrome by Optimism or QuickSwap by Polygon to earn rewards.

5. Games and NFTs: Mint or trade assets on Immutable X (StarkNet) or Polygon zkEVM.

The future of Layer 2 in 2025

The Layer 2 project is crucial for the scalability and adoption of Web3. Arbitrum and Optimism dominate with Optimistic Rollups, while zkSync, StarkNet, and Polygon zkEVM utilize ZKPs to achieve privacy and efficiency. Regulatory clarity, such as the EU's MiCA framework, supports the growth of L2, while partnerships with gaming and financial giants expand their influence.
To access the Gate.io L2 opportunity, use a trusted wallet like MetaMask, track the project on CoinGecko, and participate early through testnets or dApps. As L2 processes billions of transactions, they are laying the foundation for decentralized and accessible Web3 in 2025 and beyond.

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