Layer-2 Networks in 2025: Which Scaling Solution Fits Your Strategy?

Blockchain has come a long way from Bitcoin’s 7 transactions per second to a complex ecosystem handling DeFi, gaming, and Web3 applications. Yet the core problem remains: Layer-1 networks like Ethereum cap out around 15 TPS, nowhere near Visa’s 1,700 TPS. This is where L2 networks step in—secondary protocols that process transactions off-chain, returning only settlement proofs to the mainnet.

If Layer-1 is the main highway getting congested, Layer-2 solutions are express lanes that keep traffic flowing while maintaining security. Let’s explore what’s actually working in this space and where the real action is heading.

How Layer-2 Actually Works: Beyond the Hype

The mechanics are straightforward: instead of every transaction hitting Ethereum or Bitcoin directly, L2 networks batch them together off-chain, then post a single consolidated proof back to the mainnet. This reduces congestion, slashes gas fees by 90-95%, and speeds up confirmation times dramatically.

The beauty? You don’t sacrifice security. Layer-2 networks inherit the mainnet’s cryptographic guarantees while handling the computational heavy lifting separately.

Three main technical flavors dominate the space:

Optimistic Rollups assume transactions are valid unless proven otherwise. They’re fast, developer-friendly, and dominate Ethereum’s L2 landscape.

Zero-Knowledge Rollups use cryptographic proofs to verify transactions without revealing transaction details. Think privacy meets efficiency.

Validium validates transactions off-chain through cryptographic proofs, balancing security with extreme throughput—ideal for high-frequency applications.

The L2 Heavyweight Division: Performance Breakdown

The Speed Leaders

Arbitrum (ARB) - Current price: $0.21 | Market cap: $1.22B

Peak capacity hits 4,000 TPS with gas savings up to 95%. Arbitrum controls over 51% of Ethereum L2 TVL and hosts a thriving ecosystem of DeFi protocols, NFT marketplaces, and gaming platforms. The developer experience mirrors Ethereum’s, making migration straightforward. Recent network maturity shows consistent performance, though newer L2s sometimes outpace it in efficiency metrics.

Optimism (OP) - Current price: $0.32 | Market cap: $615.50M

Matches Arbitrum’s throughput at 4,000 TPS peak while processing transactions 26x faster than Ethereum mainnet. The OP community is increasingly self-governing, with the OP token handling governance and network participation. Its commitment to transparency and developer support positions it as a stable, long-term player in the scaling wars.

Polygon (MATIC) - The Multichain Approach

Polygon isn’t just one solution—it’s a diverse ecosystem offering zkRollups, sidechains, and Proof-of-Stake validators. The throughput ceiling of 65,000 TPS makes it a standout for sheer capacity. DeFi titans like Aave, SushiSwap, and Curve operate here, alongside major NFT marketplaces including OpenSea. The low transaction costs create ideal conditions for high-frequency trading and gaming.

Immutable X (IMX) - Current price: $0.27 | Market cap: $224.18M

Designed specifically for gaming and NFTs, IMX achieves 9,000+ TPS with near-zero fees. Its specialized architecture for Web3 gaming makes it the go-to for NFT minting and game interoperability. The ecosystem supports everything from collectibles to competitive gaming, with major titles building on the network.

The Privacy & Specialization Tier

Manta Network (MANTA) - Current price: $0.08 | Market cap: $37.39M

This privacy-focused L2 combines two modules: Manta Pacific for efficient transactions and Manta Atlantic for private identity management using zkSBTs. The 4,000 TPS capacity on Pacific, paired with zero-knowledge cryptography ensuring transaction confidentiality, appeals to users prioritizing privacy without sacrificing speed. It became the third-largest Ethereum L2 by TVL shortly after launch.

Coti (COTI) - Current price: $0.02 | Market cap: $56.75M

Originally built for Cardano, Coti is transitioning to Ethereum as a privacy-centric L2. The 100,000 TPS theoretical capacity dwarfs most competitors, with garbled circuits preserving transaction privacy. Its shift to EVM compatibility opens it to Ethereum’s developer ecosystem while maintaining anonymity features.

Starknet - The Zero-Knowledge Specialist

Starknet leverages STARK proofs for off-chain validation with theoretical TPS in the millions. The Cairo programming language attracts developers seeking cutting-edge cryptography. While its user base remains smaller than Arbitrum or Optimism, Starknet’s innovative approach to scaling generates consistent interest from advanced DeFi and gaming projects.

The Emerging Contenders

Base - Coinbase’s L2 Answer

Backed by institutional exchange infrastructure, Base targets 2,000 TPS using Optimistic Rollups and aims for 95% gas savings. As Coinbase extends its reach into scaling solutions, Base benefits from institutional credibility and a large potential user base. Still developing its ecosystem, but worth monitoring closely.

Dymension (DYM) - Current price: $0.07 | Market cap: $32.83M

The first modular L2 in the Cosmos ecosystem, Dymension separates consensus, execution, and data availability across specialized RollApps. This modularity allows developers to optimize for specific needs—pick your consensus, choose your data solution. The 20,000 TPS throughput on individual RollApps scales horizontally without congesting the settlement layer.

Lightning Network - Bitcoin’s Express Lane

Up to 1 million TPS theoretical capacity makes Lightning incomparable for sheer throughput. Operating off-chain with near-instant confirmation, it enables Bitcoin micropayments and everyday transactions. The TVL of $198 million+ reflects growing adoption, though technical barriers still prevent mainstream use compared to Bitcoin mainnet.

Layer-2 vs. The Competition: What Actually Matters

Throughput: Polygon and Coti lead on raw capacity, but Arbitrum and Optimism prove that 4,000 TPS suffices for most applications. The marginal benefit of 100,000 TPS means little if your app needs 1,000.

Security: All Ethereum-based L2s inherit mainnet security through settlement finality. Lightning Network’s security depends on Bitcoin’s continued operation but operates with different risk assumptions.

Developer Experience: Arbitrum and Optimism win here with Solidity compatibility and minimal learning curves. Starknet and Dymension demand more specialized knowledge.

Ecosystem Maturity: Arbitrum’s 51% TVL dominance means liquidity concentration and established partnerships. Smaller L2s offer higher risk but earlier-stage project opportunities.

Cost Structure: L2s consistently deliver 90%+ fee reductions against Ethereum mainnet. The difference between 95% and 99% savings becomes irrelevant once users are on-chain and experiencing sub-cent transactions.

Ethereum 2.0 Changes the Game

Proto-Danksharding’s integration with Ethereum 2.0 will slash L2 transaction fees further by optimizing data availability. The roadmap projects 100,000 TPS on Ethereum L1 eventually, but Layer-2 solutions won’t become obsolete—they’ll become more efficient. Expect tighter L1-L2 integration, lower cross-layer fees, and an ecosystem where specialized L2s coexist with a faster mainnet.

What’s the Play in 2025?

The L2 landscape has matured from experimental to essential infrastructure. Arbitrum and Optimism remain the safe bets with established ecosystems and institutional backing. Polygon’s multichain approach handles enterprises and complex applications. Specialized networks like Immutable X grab gaming adoption while privacy-focused solutions serve compliance-conscious institutions.

For most users: pick where your preferred apps live. For builders: evaluate whether you need raw throughput (Polygon), privacy (Manta, Coti), or proven stability (Arbitrum, Optimism). For traders: liquidity follows Arbitrum, but emerging L2s often feature fresher opportunities with less competition.

Layer-2 isn’t the future of blockchain anymore—it’s the present. The question isn’t whether to use L2, but which one aligns with your goals.