Layer-2 Scaling Solutions in 2025: Which Projects Are Setting the Pace?

The blockchain industry has witnessed rapid evolution—from Bitcoin’s emergence as a peer-to-peer payment system to today’s diverse ecosystem spanning DeFi, gaming, NFTs, and Web3 applications. Yet a persistent challenge remains: scalability. Ethereum processes roughly 15 transactions per second (TPS) on its base layer, Bitcoin manages about 7 TPS, while Visa handles approximately 1,700 TPS—exposing a massive performance gap between blockchain networks and traditional systems.

This scalability bottleneck has spawned Layer-2 solutions, a category of scaling technologies designed to process transactions off the primary blockchain, bundle them into batches, and settle them on the main chain. These secondary networks promise to be among the fastest blockchain solutions emerging in 2023 and beyond, offering near-instant confirmations and dramatically reduced fees.

Understanding Layer-2: The Architecture Behind Blockchain’s Efficiency Surge

Layer-2 networks operate on a simple principle: execute transactions outside the main blockchain, then periodically anchor the results back to Layer 1 for security guarantees. By moving computational work off-chain, these systems reduce network congestion, lower operational costs, and dramatically boost throughput.

The mechanics are elegant. Instead of processing every transaction directly on Ethereum or Bitcoin, Layer-2 systems collect multiple transactions, compress them into cryptographic proofs, and submit a single summary to the base layer. This batching approach transforms transaction settlement from a serial process into a parallel one—the fastest blockchain technologies in 2023 typically employ this architecture.

The Layer-2 Advantage: Why Projects Are Adopting These Solutions

Layer-2 adoption has accelerated for three core reasons:

Cost Efficiency at Scale: Transaction fees on Layer-2 networks drop by 50-95% compared to Layer-1, making micropayments and high-frequency trading economically viable.

Speed Without Sacrifice: Confirming transactions in seconds rather than minutes creates room for real-time applications—gaming, DeFi, NFT trading—without compromising blockchain’s security model.

Ecosystem Resilience: By reducing Layer-1 congestion, Layer-2 solutions enable dApps and protocols to scale without triggering the resource competition that would otherwise choke the network. This interconnection is crucial for mass adoption of blockchain technology.

Architectural Diversity: How Layer-2 Solutions Differ

Not all Layer-2 networks operate identically. The fastest blockchain implementations vary based on their trade-offs:

Optimistic Rollups

Assume transactions are valid by default, only computing fraud proofs if challenged. This efficiency-first approach powers Arbitrum and Optimism, delivering 2,000-4,000 TPS with rapid deployment. The trade-off: slightly longer withdrawal periods (7 days) to allow challenge windows.

Zero-Knowledge (zk) Rollups

Generate cryptographic proofs that verify all transactions without revealing transaction details. Polygon, Manta Network, and Starknet employ this model for enhanced privacy and faster finality. The computational overhead is offset by stronger privacy guarantees and instant settlement.

Validium and Plasma

Validium chains process transactions off-chain but verify them on-chain, balancing efficiency and security. Plasma chains operate as sidechains with their own consensus rules. These models enable Immutable X to achieve 9,000+ TPS for NFT-heavy workloads.

Modular Rollups

Dymension’s RollApps separate consensus, execution, and data availability, allowing specialized chains to optimize for specific applications rather than adopting a one-size-fits-all model.

Leading Layer-2 Networks: 2025 Edition

Arbitrum: Market Leader by Adoption

Current Metrics: Price $0.19 | Market Cap $1.09B | TVL $10.7B | Throughput: 2,000-4,000 TPS

Arbitrum commands over 51% of Ethereum Layer-2 TVL, reflecting its developer-friendly infrastructure and liquidity depth. Built on Optimistic Rollup technology, Arbitrum processes transactions 10x faster than Ethereum mainnet while reducing gas costs by up to 95%. The ARB governance token enables community participation in network decisions, and the ecosystem hosts leading DeFi protocols, NFT platforms, and gaming studios.

Optimism: Security-First Scaling

Current Metrics: Price $0.26 | Market Cap $513.24M | TVL $5.5B | Throughput: 2,000 TPS

Optimism prioritizes developer familiarity through EVM compatibility and the OP Stack framework, enabling rapid protocol deployments. With throughput matching Arbitrum’s and identical 90%+ fee reductions, Optimism differentiates through governance decentralization and community incentives. OP token holders directly shape protocol upgrades, positioning Optimism as a community-governed alternative to centralized Layer-2 operators.

Lightning Network: Bitcoin’s Speed Layer

Metrics: Throughput: Up to 1 million TPS | TVL: $198M+ | Technology: Bi-directional Payment Channels

Lightning reimagines Bitcoin scalability through off-chain payment channels. Two parties lock collateral in a multi-signature contract, then exchange unlimited transactions between themselves. Settlement occurs on-chain only when they close the channel. This model enables instant Bitcoin transfers at negligible cost, powering microtransactions and remittances.

Polygon: Multi-Solution Ecosystem

Metrics: Price $7.5B Market Cap (MATIC) | TVL: $4B | Throughput: 65,000 TPS

Polygon operates as a multichain framework, offering both zkRollups for privacy and sidechain architectures for different use cases. Its 65,000 TPS throughput—far exceeding any single Layer-2 mentioned here—reflects its diverse technology stack. Seamless Ethereum connectivity combined with low costs made Polygon the de facto home for DeFi experimentation and NFT marketplaces in 2024.

Base: Coinbase’s Layer-2 Infrastructure

Current Metrics: TVL: $729M | Throughput: 2,000 TPS | Technology: Optimistic Rollup

Backed by Coinbase’s security expertise, Base leverages the OP Stack to deliver Optimism-comparable performance with institutional-grade infrastructure. Target users include Coinbase wallet holders seeking cost-effective on-chain interaction. Base is still in growth phase but represents a credible bridge between centralized exchange users and Layer-2 protocols.

Manta Network: Privacy-First Scaling

Current Metrics: Price $0.07 | Market Cap $33.52M | TVL: $951M | Throughput: 4,000 TPS

Manta combines zero-knowledge cryptography with EVM compatibility, enabling confidential transactions and private smart contracts. Its rapid ascent to become the third-largest Ethereum Layer-2 (by TVL) reflects growing demand for privacy in DeFi. Manta Pacific handles computation while Manta Atlantic manages identity through zero-knowledge proofs, creating a privacy layer for sensitive financial activity.

Dymension: Modular Rollup Framework

Metrics: Throughput: 20,000 TPS | Technology: Enshrined RollApps

Dymension diverges from monolithic Layer-2 design by enabling specialized RollApps—independent chains with customizable consensus, execution, and data availability. Developers optimize for gaming, DeFi, or other verticals rather than adopting a generic Layer-2. The Dymension Hub ensures security through enshrined rollups, while Inter-Blockchain Communication (IBC) enables cross-chain composability.

Starknet: STARK-Powered Scalability

Metrics: Throughput: 2,000-4,000 TPS | Technology: zk Rollup (STARK proofs)

Starknet leverages STARK proofs—a quantum-resistant zero-knowledge technology—for transaction verification. With theoretical throughput exceeding millions of TPS, Starknet represents a frontier in cryptographic scalability. The Cairo programming language attracts specialized developers, though adoption remains below Arbitrum or Optimism.

Coti: Privacy-Centric Evolution

Current Metrics: Price $0.02 | Market Cap $54.66M | Throughput: 100,000 TPS

Originally a Cardano Layer-2, Coti is transitioning to Ethereum to leverage network liquidity. Its privacy feature—garbled circuits for transaction confidentiality—differentiates it from other zk solutions. The migration to EVM compatibility aims to unlock Ethereum’s developer ecosystem while maintaining Coti’s privacy emphasis.

Immutable X: Gaming-Optimized Layer-2

Current Metrics: Price $0.23 | Market Cap $192.86M | TVL: $169M | Throughput: 9,000+ TPS

Immutable X specializes in NFT infrastructure, delivering 9,000+ TPS for minting, trading, and transfer operations. Its Validium architecture prioritizes throughput for asset-heavy workloads. Backed by a gaming-focused ecosystem (Gods Unchained, Illuvium), Immutable X demonstrates how Layer-2 optimization for specific use cases drives adoption.

How Ethereum 2.0 Reshapes Layer-2 Economics

Ethereum’s roadmap includes Proto-Danksharding, expected to increase base layer throughput to 100,000 TPS. This upgrade fundamentally alters Layer-2 value propositions:

Layer-2 Fees Will Compress Further: Proto-Danksharding reduces data posting costs for rollups, enabling sub-cent transaction fees even during network congestion.

Latency Improvements: Enhanced Ethereum-rollup communication improves settlement times and reduces confirmation uncertainty.

Complementary Scaling: Rather than replacing Layer-2 solutions, Ethereum 2.0 enhances their efficiency. Layer-1 and Layer-2 will coexist, with the fastest blockchain applications choosing Layer-2 for cost, Layer-1 for absolute security.

Final Perspective

Layer-2 networks have transitioned from experimental to essential infrastructure. In 2025, choosing between Arbitrum’s liquidity, Optimism’s decentralization, Polygon’s throughput, or specialized solutions like Immutable X depends on application requirements rather than Layer-2 maturity concerns.

The fastest blockchain implementations now operate at Layer-2, processing thousands of transactions per second at costs that make everyday on-chain activity economically feasible. This evolution signals blockchain’s progression from niche financial experiment to mainstream infrastructure capable of supporting real-time commerce, gaming, and decentralized services at scale.