Top 15 Layer 2 Blockchain Projects to Watch in 2025

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Cryptocurrency Scripts

11 min readAug 19, 2024

Have you noticed how blockchain technology, with all its potential, sometimes struggles with speed and cost? If you’re involved in crypto or blockchain, you’ve likely faced high transaction fees and delayed confirmations. It’s a common challange, especially for Ethereum users. But what if there was a way to speed up transactions, reduce costs, and make the entire experience more user-friendly? Enter the Layer 2 blockchain solutions for enhancing transaction efficiency and affordability.

Consider this striking comparison — Ethereum, one of the most popular blockchains, can only handle about 15 transactions per second (TPS). Compare this to Visa, which processes around 1,700 TPS on average. Clearly, if blockchain is to compete with traditional financial systems, it needs a boost in speed and efficiency. This is where Layer 2 solutions come into play. They offer a way to scale blockchains like Ethereum, handling thousands of transactions per second while maintaining security and decentralization.

A notable trend in the blockchain world is that the total value locked (TVL) in Layer 2 solutions reached over $4 billion in 2024. This rapid growth shows that Layer 2 technologies are not just a trend but a necessity for the future of blockchain. Vitalik Buterin, Ethereum’s co-founder, has even stated, “Layer 2 is the future of Ethereum scaling.” With such strong backing, it’s clear that Layer 2 is set to revolutionize the blockchain space.

Now, Without any delays let us start with the basics…

What is Layer 2 Blockchain and How Does It Work?

Layer 2 blockchain refers to secondary frameworks or protocols built on the top of existing blockchain networks (Layer 1). The primary goal of Layer 2 solutions is to improve the scalability and efficiency of these networks without compromising security or decentralization.

In simpler terms, imagine Layer 1 as the highway where all cars (transactions) travel. When too many cars are on the road, traffic slows down, and it becomes expensive to drive (high gas fees). Likewise, Layer 2 acts like an additional lane or even an entirely new road running parallel to the highway. Cars can take this new road to avoid traffic, reaching their destination faster and more affordably.

Layer 2 solutions achieve this by processing transactions off the main blockchain and then bundling them together to be recorded on the Layer 1 chain. This approach drastically reduces the load on the main chain, allowing it to focus on security and consensus while the Layer 2 solutions handle the bulk of transaction processing.

There are various types of Layer 2 Blockchain solutions, including

Rollups -(e.g., zk-Rollups and Optimistic Rollups) These bundle many transactions into a single one to be processed on the main chain.

State Channels - Allow participants to transact off-chain and only settle on-chain when necessary.
Sidechains - Independent blockchains running parallel to the main chain, connected through a two-way peg.
Plasma - A framework for creating scalable applications by processing transactions off-chain and periodically submitting them to the main chain.

Moreover, being familiar with the top players in Layer 2 blockchain can help you gain an advantage and keep you informed about the innovations and trends in blockchain technology. Knowing the top 15 Layer 2 blockchain projects for 2025 is important.

Top 15 Layer 2 Blockchain Projects to Know in 2025

Let’s dive into the top 15 Layer 2 blockchain projects that are making waves and are expected to dominate the space in 2025.

1. Polygon (MATIC)

Throughput 65,000 TPS
TVL $4 billion
Market Cap $7.5 billion+
Technology zk-Rollup
Max Supply: 10 billion MATIC
Vol (24H): $250 million
Change (YTD): +200%

Polygon has emerged as a frontrunner in the Layer 2 space, providing a multichain ecosystem that significantly enhances Ethereum’s scalability. By using zk-Rollups and a Proof-of-Stake consensus mechanism, it achieves high transaction speeds while minimizing gas fees. The platform has become the backbone for numerous DeFi projects, facilitating integrations with protocols such as Aave, SushiSwap, and many others, thus reinforcing its position as a vital component of the Ethereum landscape.

Multichain ecosystem enhances scalability and reduces gas fees, supports numerous DeFi projects.

2. Optimism (OP)

Throughput 2,000 TPS
TVL $3.2 billion
Market Cap $5 billion+
Technology Optimistic Rollup
Max Supply: 10 billion OP
Vol (24H): $150 million
Change (YTD): +180%

Optimism stands out for its user-friendly approach, allowing developers to migrate existing Ethereum dApps with minimal alterations. The Optimistic Rollup technology enhances transaction throughput and cost-effectiveness, making it easier for projects to scale without sacrificing the security inherent in the Ethereum blockchain. This accessibility has led to a growing ecosystem of applications and services.

User-friendly for developers migrating dApps, improves transaction throughput while maintaining Ethereum’s security.

3. Arbitrum

Throughput 4,500 TPS
TVL $5 billion
Market Cap $6 billion+
Technology Optimistic Rollup
Max Supply: 10 billion ARB
Vol (24H): $200 million
Change (YTD): +175%

Arbitrum leverages Optimistic Rollups to deliver swift, cost-efficient transactions while ensuring the security of Ethereum. Its compatibility with existing Ethereum tools and applications has made it a preferred choice for developers looking to enhance performance without compromising on trust or security. The platform’s robust architecture supports a diverse range of applications, from gaming to DeFi.

Compatibility with Ethereum tools, supports a diverse range of applications, including gaming and DeFi.

4. zkSync

Throughput 20,000 TPS
TVL $2.8 billion
Market Cap $4 billion+
Technology zk-Rollup
Max Supply: 10 billion ZKS
Vol (24H): $180 million
Change (YTD): +150%

zkSync is primarily focused on scaling Ethereum while preserving privacy and security through its zk-Rollup technology. This Layer 2 blockchain platform is gaining traction for its ability to facilitate rapid transactions, making it ideal for payment systems and decentralized exchanges. Its commitment to maintaining Ethereum’s security standards while improving usability positions it as a critical player in the blockchain ecosystem.

Focuses on privacy and security, ideal for payments and decentralized exchanges.

5. Loopring (LRC)

Throughput 2,025 TPS
TVL $1.5 billion
Market Cap $2 billion+
Technology zk-Rollup
Max Supply: 1.45 billion LRC
Vol (24H): $50 million
Change (YTD): +120%

Loopring’s decentralized exchange protocol is designed for high-speed, low-cost trading on Ethereum. Utilizing zk-Rollups, it ensures efficient transaction processing, making it particularly appealing for DeFi applications. By prioritizing user experience and minimizing transaction costs, Loopring is well-positioned to thrive in the rapidly evolving DeFi landscape.

High-speed trading and low-cost transactions, tailored for DeFi applications.

6. StarkNet

Throughput 9,000 TPS
TVL $1.8 billion
Market Cap $3 billion+
Technology zk-Rollup
Max Supply: 8 billion STARK
Vol (24H): $70 million
Change (YTD): +130%

StarkNet is a permissionless decentralized Layer 2 network that leverages zk-Rollups to deliver scalable and secure smart contracts. Its architecture is tailored for complex dApps and enterprise solutions, providing developers with the tools needed to create advanced applications. As the demand for high-performance dApps increases, StarkNet’s capabilities make it a critical infrastructure layer.

Scalable and secure smart contracts, ideal for complex dApps and enterprise solutions.

7. Immutable X (IMX)

Throughput 9,000 TPS
TVL $500 million
Market Cap $1 billion+
Technology zk-Rollup
Max Supply: 2 billion IMX
Vol (24H): $20 million
Change (YTD): +200%

Focused on the NFT market, Immutable X layer 2 crypto solution eliminates gas fees for minting and trading NFTs through its innovative zk-Rollup technology. By providing a fast and secure environment for NFT transactions, it has become the go-to platform for creators and collectors alike, reinforcing the role of Layer 2 solutions in the burgeoning NFT ecosystem.

No gas fees for NFT transactions, rapid and secure environment for NFT creators and collectors.

8. Boba Network

Throughput 7,000 TPS
TVL $750 million
Market Cap $1.5 billion+
Technology Optimistic Rollup
Max Supply: 2 billion BOBA
Vol (24H): $60 million
Change (YTD): +160%

Boba Network enhances Ethereum’s scalability through Optimistic Rollups, reducing gas fees and improving transaction speeds. This Layer 2 blockchain flexibility makes it suitable for a broad spectrum of applications, including gaming and DeFi, paving the way for innovative projects that require efficient blockchain interactions.

Flexible platform for gaming and DeFi, reducing gas fees and improving transaction speeds.

9. Cartesi

Throughput 10,000 TPS
TVL $600 million
Market Cap $1.2 billion+
Technology Optimistic Rollup
Max Supply: 1 billion CTSI
Vol (24H): $30 million
Change (YTD): +140%

Cartesi introduces a unique solution by enabling complex off-chain computations with a Linux-based architecture. This innovative approach provides developers with the necessary computational power to build sophisticated dApps, expanding the horizons for decentralized applications and fostering greater innovation within the ecosystem.

Enables complex off-chain computations, expanding possibilities for decentralized applications.

10. Celer Network (CELR)

Throughput 10,000 TPS
TVL $1 billion
Market Cap $1.8 billion+
Technology State Channel
Max Supply: 10 billion CELR
Vol (24H): $50 million
Change (YTD): +130%

Utilizing State Channels, Celer Network offers instantaneous, low-cost transactions across a variety of applications, including gaming, DeFi, and micropayments. Its versatility makes it an appealing choice for developers seeking to enhance user experiences while leveraging the security of the underlying blockchain.

Instant transactions with low costs, versatile for various applications including gaming and DeFi.

11. MetisDAO

Throughput 2,000 TPS
TVL $800 million
Market Cap $1.3 billion+
Technology Optimistic Rollup
Max Supply: 10 million METIS
Vol (24H): $40 million
Change (YTD): +125%

MetisDAO focuses on creating a Layer 2 platform that supports decentralized autonomous organizations (DAOs) and dApps. By combining Optimistic Rollup technology with a unique framework for DAOs, it aims to empower community-driven projects and facilitate collaborative development.

Supports decentralized autonomous organizations (DAOs), empowering community-driven projects.

12. OMG Network (OMG)

Throughput 4,000 TPS
TVL $700 million
Market Cap $1 billion+
Technology Plasma
Max Supply: 140 million OMG
Vol (24H): $20 million
Change (YTD): +110%

OMG Network utilizes Plasma technology to enhance Ethereum’s scalability, providing faster and cheaper transactions. Designed for high-volume applications like remittances and payments, it aims to serve as a foundational layer for mainstream blockchain adoption.

Enhances scalability for high-volume applications, ideal for remittances and payment.

13. xDai (STAKE)

Throughput 70 TPS (on-chain), thousands off-chain
TVL $500 million
Market Cap $800 million+
Technology Sidechain
Max Supply: 1 million STAKE
Vol (24H): $25 million
Change (YTD): +150%

xDai is a stable sidechain for Ethereum, renowned for its stable transaction fees and rapid confirmation times. It is widely adopted for everyday transactions, payments, and governance within DAOs, contributing to a seamless user experience.

Stable transaction fees and rapid confirmation times, widely used for everyday transactions and governance.

14. Connext

Throughput 10,000 TPS
TVL $400 million
Market Cap $600 million+
Technology State Channel
Max Supply: 3 billion CONN
Vol (24H): $15 million
Change (YTD): +140%

Connext employs State Channels to facilitate instant transactions and enable interoperability between blockchains. This capability is especially beneficial for cross-chain transfers, empowering users with more fluid access to their digital assets across various platforms.

Facilitates instant transactions and interoperability between blockchains, ideal for cross-chain transfers.

15. Aztec Network

Throughput 300 TPS
TVL $300 million
Market Cap $500 million+
Technology zk-Rollup
Max Supply: 1 billion AZT
Vol (24H): $10 million
Change (YTD): +160%

Aztec Network is dedicated to privacy, employing zk-Rollups to provide confidential transactions on Ethereum. This focus on privacy and security positions it as an ideal choice for users and developers who prioritize these attributes while taking advantage of the scalability benefits offered by Layer 2 solutions.

Focused on privacy and confidential transactions, ideal for users prioritizing security in their blockchain interactions.

These Layer 2 crypto solutions represent the forefront of blockchain technology, each contributing unique features that address the limitations of existing networks. Their combined advancements in scalability, cost reduction, and security will likely drive broader adoption and innovative applications in the blockchain space by 2025. Well, Knowing the other benefits offered by layer2 Blockchains can reveal ways to improve efficiency, save money, and remain competitive.

How investing in Layer 2 blockchain Projects can benefit businesses?

Layer 2 blockchain projects offer several compelling benefits that make them attractive to investors, developers, and users alike. As the blockchain space continues to grow, these advantages are becoming increasingly important.

Scalability and Speed — Layer 2 blockchain solutions enable businesses to process thousands of transactions per second, ensuring smooth operations even during peak demand and preventing delays.
Cost Efficiency — By significantly reducing transaction fees, Layer 2 technologies make blockchain integration more affordable for businesses, enhancing profitability.
Enhanced Customer Experience — Faster transaction times and lower costs improve customer satisfaction, making blockchain-based services more appealing to end users.
Improved Privacy — With privacy features offered by Layer 2 crypto solutions like zk-Rollups, businesses can conduct transactions without exposing sensitive data, ensuring confidentiality for customers and partners.
Interoperability — Layer 2 blockchain solutions enable seamless interaction between different blockchains, allowing businesses to develop versatile applications that tap into multiple networks and ecosystems.
Sustainability — By decreasing the energy required for transactions, Layer 2 technologies help businesses align with sustainability goals, appealing to environmentally conscious consumers.
Support for Innovative Markets — Layer 2 crypto is particularly advantageous for businesses in the decentralized finance (DeFi) and non-fungible token (NFT) sectors, facilitating high transaction volumes and attracting more users.
Robust Security — Layer 2 blockchain solutions maintain high-security standards by settling transactions on the Layer 1 blockchain, ensuring that business assets and customer data are well protected.
Developer Accessibility — Many Layer 2 platforms provide user-friendly tools and resources, making it easier for businesses to develop and deploy their decentralized applications (dApps).
Market Growth Potential — Investing in Layer crypto 2 solutions positions businesses to capitalize on the growing blockchain market, attracting new customers and partnerships, and driving overall growth.

This approach shows the strategic value of Layer 2 blockchain technologies for businesses, boosting operational efficiency and driving innovation.

Finally…

As we look towards 2025, it’s clear that Layer 2 blockchain solutions are poised to play a pivotal role in the evolution of the blockchain ecosystem. With their ability to enhance scalability, reduce costs, and improve user experiences, these technologies are essential for the mass adoption of blockchain.

For businesses and investors, understanding and leveraging Layer 2 blockchain projects is crucial to staying competitive in this rapidly evolving space. As the industry continues to grow, partnering with a blockchain development company that specializes in Layer 2 technologies can provide a strategic advantage. These companies offer the expertise and tools needed to build scalable, secure, and efficient blockchain applications that meet the demands of the future.

Whether you’re a developer looking to create the next big dApp, an investor seeking to capitalize on the latest trends or a user who needs a smoother blockchain experience, Layer 2 solutions offer immense potential. The future of blockchain is not just about the technology we have today, but also about the innovations that Layer 2 will bring to the table.

FAQs

1. What are Layer 2 solutions in blockchain?
Layer 2 solutions are secondary frameworks or protocols built on top of an existing blockchain (Layer 1) to improve scalability and efficiency. They allow for faster and cheaper transactions while maintaining the security and decentralization of the main blockchain.

2. What is the difference between Layer 1 and Layer 2 blockchains?
Layer 1 blockchains are the base networks, like Ethereum or Bitcoin, where all transactions are processed and recorded. Layer 2 blockchain solutions are built on top of Layer 1 blockchains to enhance their performance by processing transactions off-chain or in parallel.

2. How do zk-Rollups work?
zk-Rollups bundle multiple transactions off-chain into a single proof that is then verified and recorded on the main blockchain. This process reduces the load on the main chain, resulting in faster transactions and lower fees.

4. Why is Layer 2 blockchain important for Ethereum?
Layer 2 Blockchain is crucial for Ethereum because it addresses the network’s scalability issues, allowing it to handle more transactions at lower costs. This is especially important as Ethereum continues to grow and host more decentralized applications (dApps).

5. Which Layer 2 solution is best for DeFi?
While there are several Layer 2 crypto solutions available, Polygon and Arbitrum are particularly popular for DeFi due to their high throughput, low fees, and strong ecosystem support.

By keeping up with these trends and knowing the benefits of Layer 2 blockchain projects, you can position yourself to benefit from the opportunities they offer in the future. Whether you’re investing, developing, or simply using blockchain technology, Layer 2 is a key area to watch as we move into 2025 and beyond.