Layer 2 Crypto List: Which Scaling Solutions Dominate in 2025?

The blockchain scalability crisis is real. Bitcoin handles 7 transactions per second. Ethereum’s mainnet maxes out around 15 TPS. Visa processes 1,700 TPS without breaking a sweat. Enter Layer 2 networks—the game-changing infrastructure that’s quietly reshaping crypto.

If you’re navigating the crypto landscape in 2025, understanding Layer-2 solutions isn’t optional anymore. These off-chain scaling protocols have evolved from experimental tech into essential infrastructure powering billions in DeFi volume, gaming ecosystems, and NFT activity. This guide breaks down the best Layer 2 crypto projects worth tracking, their underlying tech, and why they matter for your portfolio strategy.

Understanding Layer 2’s Role in Blockchain Evolution

The blockchain trilemma describes an impossible choice: scalability, security, or decentralization—pick two. Layer 2 protocols offer a workaround by processing transactions outside the main chain, then anchoring results back to Layer 1 for security guarantees.

Think of it architecturally: Layer 1 is your foundation. Layer 2 is the express infrastructure built on top. Layer 3 brings specialization for specific use cases. This vertical stacking allows Bitcoin and Ethereum to keep their security intact while Layer 2 handles the throughput burden.

The mechanics are elegant. Transactions bundle together off-chain, get processed at scale, then submit a compressed proof to mainnet. Transaction fees drop dramatically. Speed multiplies. Congestion disappears. Users pay fractions of a cent instead of dollars.

The Core Technologies Behind Modern Layer 2 Solutions

Optimistic Rollups: Speed Through Trust Assumptions

Optimistic Rollups assume transactions are valid by default. They only re-execute transactions if challenged, cutting verification overhead. This “optimistic” model makes them faster than alternatives. Arbitrum and Optimism dominate this category.

ARB currently trades at $0.19 with a $1.09B market cap. OP sits at $0.27 with a $521.60M market cap.

Arbitrum processes 2,000-4,000 TPS peak, cutting gas costs by 95% versus Ethereum mainnet. Optimism matches these speeds while maintaining similar cost reduction. Both are proven, battle-tested, and host thousands of dApps.

Zero-Knowledge Rollups: Privacy Meets Scalability

ZK Rollups bundle hundreds of transactions into a single cryptographic proof, revealing nothing about individual transactions. This privacy-first approach powers next-generation protocols like Manta Network, Starknet, and Coti.

Manta trades at $0.07 with $33.76M market cap. Despite its smaller size, Manta became the third-largest Ethereum Layer 2 by TVL within months of launch—a sign of institutional and retail appetite for privacy-focused scaling.

Coti (COTI: $0.02, $55.74M market cap) is transitioning from Cardano’s Layer 2 to become Ethereum’s privacy-focused option, maintaining zero-knowledge cryptography while moving to EVM compatibility.

Starknet uses STARK proofs, achieving theoretical throughput in the millions of TPS range while keeping gas costs negligible—appealing to traders and developers alike.

Validium & Plasma: Alternative Architectures

Not every Layer 2 follows the rollup playbook. Immutable X (IMX: $0.24, $195.59M market cap) uses Validium technology, moving transaction validation off-chain while maintaining Ethereum security. It’s designed specifically for gaming and NFTs, processing 9,000+ TPS.

Plasma chains operate as specialized sidechains, offering distinct approaches for particular use cases.

Layer 2 Crypto Projects Ranked by Market Presence

Arbitrum: The Market Leader

• Throughput: 2,000-4,000 TPS
• TVL: $10.7 billion
• Price & Market Cap: $0.19 | $1.09B circulating market cap
• Technology: Optimistic Rollup

Arbitrum commands over 51% of Ethereum Layer 2 TVL. Its developer ecosystem is mature, featuring Aave, Curve, Uniswap, and hundreds of other DeFi protocols. The ARB token powers governance and transaction fees.

Risks exist—all Layer 2s depend on Ethereum’s security, so mainnet issues cascade downward. But Arbitrum’s scale, team strength, and community engagement minimize execution risk relative to alternatives.

Optimism: The Contender

• Throughput: 2,000 TPS confirmed | 4,000 TPS peak
• TVL: $5.5 billion
• Price & Market Cap: $0.27 | $521.60M circulating market cap
• Technology: Optimistic Rollup

Optimism runs parallel infrastructure to Arbitrum, processing transactions 26x faster than Ethereum while reducing fees by 90%. The ecosystem hosts Curve, Aave, Synthetix, and emerging protocols.

OP token holders govern network parameters. Optimism is transitioning toward full decentralization, a lengthy process requiring community oversight.

Polygon: The Multi-Solution Ecosystem

• Throughput: 65,000 TPS
• TVL: $4 billion
• Technology: zk Rollup + sidechains

Polygon isn’t a single Layer 2—it’s an ecosystem offering multiple scaling solutions. Some utilize zk Rollups for privacy-heavy transactions. Others deploy Proof-of-Stake sidechains like Mumbai. MATIC token covers gas across the network.

Its throughput capability (65,000 TPS) far exceeds competitors, making it ideal for high-volume NFT trading and DeFi activity. OpenSea, Rarible, Aave, and SushiSwap all integrate Polygon infrastructure.

Base: Coinbase’s Layer 2 Play

• Throughput: 2,000 TPS target
• TVL: $729 million
• Technology: Optimistic Rollup (OP Stack)

Coinbase launched Base to enhance Ethereum’s usability. It targets 2,000 TPS, near-instant transactions, and 95% fee reduction. The OP Stack foundation means it shares architectural similarities with Optimism.

Base lacks a native token currently but benefits from Coinbase’s brand, security expertise, and 30+ million users. It’s actively building developer tooling and ecosystem partnerships.

Manta Network: Privacy-First Scaling

• Throughput: 4,000 TPS
• TVL: $951 million
• Price: $0.07 | $33.76M circulating market cap
• Technology: zk Rollup

Manta comprises two modules: Manta Pacific (EVM-compatible Layer 2) and Manta Atlantic (private identity management). Zero-knowledge cryptography is embedded throughout.

Users get anonymous transactions and confidential smart contracts—increasingly valuable as on-chain privacy becomes regulatory and competitive focus. Developers access Universal Circuits for building privacy-centric DeFi applications.

Immutable X: Gaming-Focused L2

• Throughput: 9,000 TPS+
• TVL: $169 million
• Price: $0.24 | $195.59M circulating market cap
• Technology: Validium

Immutable X targets gaming and NFTs specifically. It achieves 9,000+ TPS with near-instant finality and minimal fees. IMX token funds network operations and governance.

The gaming emphasis differentiates IMX—it optimizes UX for players and developers rather than general DeFi users. God’s Unchained, Immutable’s flagship game, demonstrates this specialization.

Coti: The Privacy Pivot

• Throughput: 100,000 TPS capacity
• Price: $0.02 | $55.74M circulating market cap
• Technology: zk Rollup (transitioning from Cardano)

Coti is transitioning from Cardano’s ecosystem to become Ethereum’s privacy-first Layer 2. The shift maintains its garbled circuits technology for transaction confidentiality while adopting EVM compatibility.

This repositioning opens access to Ethereum’s vastly larger DeFi ecosystem. Existing COTI tokens migrate to the new L2, preserving token continuity.

Starknet: Zero-Knowledge Pioneer

• Throughput: 2,000-4,000 TPS (current) | millions (theoretical)
• TVL: $164 million
• Technology: zk Rollup (STARK proofs)

Starknet’s cryptographic approach enables theoretical throughput in the millions of TPS. Practical throughput today sits at 2,000-4,000 TPS, with fees that are nearly negligible.

Cairo programming language and native developer tools attract protocols building novel DeFi mechanics. Starknet’s roadmap emphasizes becoming fully community-governed.

Dymension: Modular Rollup Architecture

• Throughput: 20,000 TPS
• Technology: RollApps (modular rollups)

Dymension represents a modular approach—developers deploy specialized RollApps on a secure settlement hub. Each RollApp optimizes its own consensus, execution, and data availability.

Enshrined rollups embed validity permanently, enhancing cross-network trust. Inter-Blockchain Communication (IBC) protocol enables interoperability beyond Ethereum.

Lightning Network: Bitcoin’s Express Lane

• Throughput: Up to 1 million TPS
• TVL: $198 million+
• Technology: Bi-directional payment channels

Lightning Network scales Bitcoin through off-chain payment channels. Users open bidirectional channels, conduct instant transactions, then settle on-chain periodically.

It’s ideal for micropayments and everyday use. Practical adoption remains lower than Ethereum Layer 2s, partly due to technical complexity and limited merchant integration.

Comparing Layer 1, Layer 2, and Layer 3 Approaches

Layer 1 (Bitcoin, Ethereum mainnet) provides foundational security but limited throughput.

Layer 2 (Arbitrum, Optimism, Polygon, Base, Manta, Starknet, Coti, Immutable X, Dymension, Lightning) offloads transaction processing, maintaining Layer 1 security guarantees. This is where most current activity concentrates.

Layer 3 networks build specialized solutions atop Layer 2—think gaming chains on top of Arbitrum, or privacy layers on Polygon. They optimize for specific use cases while inheriting lower-layer security.

The practical implication: Layer 2 is the current battleground. Every major project either operates on a Layer 2 or plans migration. Market dynamics favor protocols offering the lowest fees and fastest settlement.

How Ethereum 2.0 Reshapes Layer 2 Economics

Ethereum 2.0’s Danksharding upgrade will fundamentally alter Layer 2 economics. Proto-Danksharding, the first phase, optimizes data availability and reduces Layer 2 costs further.

When Ethereum reaches 100,000 TPS throughput (expected post-Danksharding), Layer 2s don’t become redundant—they become cheaper and faster. Think of it as Layer 1 improving the cost basis for Layer 2 operation.

Practically, users experience:

• Lower Layer 2 fees as underlying data costs drop
• Faster settlements as Proto-Danksharding improves communication between L1 and L2
• Better UX through reduced confirmation times and network congestion

Layer 1 and Layer 2 enter a symbiotic relationship rather than competing directly.

Selecting Your Layer 2 Strategy

Choose based on your use case:

DeFi traders: Arbitrum or Optimism offer liquidity depth, established protocols, and proven track records.

Privacy-conscious users: Manta or Coti provide zero-knowledge cryptography and transaction confidentiality.

Gamers and NFT collectors: Immutable X or Polygon provide specialized infrastructure and lower costs.

Bitcoin advocates: Lightning Network offers unmatched simplicity for payments.

Developers: Arbitrum, Optimism, and Polygon host the largest ecosystems. Starknet attracts builders exploring novel mechanisms.

The Layer 2 crypto list constantly evolves. Track TVL, transaction volume, ecosystem development, and governance health as key metrics. In 2025, Layer 2 adoption is no longer optional—it’s foundational infrastructure reshaping how crypto functions at scale.