Arbitrum
Ethereum L22,000–4,000
Optimistic Rollup
DeFi depth, L3 via Orbit
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Top Layer-2 crypto projects to watch in 2025. Explore Arbitrum, Optimism, Polygon, Starknet, and more scaling Ethereum and Bitcoin.
Author: Akshat Thakur
Blockchain technology has come a long way since Bitcoin’s whitepaper dropped in 2008. What began as a decentralized experiment in peer-to-peer money has since evolved into a global platform powering DeFi, NFTs, Web3, GameFi, and even metaverse applications. But as more people and industries adopt blockchain, one thing has become clear: scalability is the bottleneck. Solution, the Top Layer-2 crypto projects.
Layer-1 blockchains like Ethereum and Bitcoin are secure and decentralized but limited in throughput. For example, Bitcoin handles only ~3–7 TPS, while Ethereum processes around 12–20 TPS. Compare that to Visa’s ~1,700 TPS average, ~24k+ capacity, and you can see why crypto still struggles with mainstream adoption.
This is where Top Layer-2 crypto projects come in. By processing transactions off the main chain and then anchoring results back securely, Layer-2s act as express lanes for blockchains. They slash transaction costs, speed up confirmations, and unlock new possibilities for DeFi, NFTs, payments, and gaming.
In this guide, we’ll explore the Top Layer-2 Crypto Projects to watch in 2025. These aren’t just scaling patches they’re ecosystems that could define the next phase of blockchain growth.
A Layer-2 protocol is essentially a scaling solution built on top of a Layer-1 blockchain. Instead of changing the base blockchain, these networks process transactions elsewhere and feed the results back securely.
Think of Ethereum as a busy highway. Without new lanes, traffic slows down and tolls skyrocket. Layer-2 solutions act as extra lanes, overpasses, and express routes, ensuring smoother traffic flow while keeping Ethereum’s underlying security intact.
Each approach has trade-offs, but together they form the backbone of the Layer-2 movement reshaping blockchain.
Arbitrum has quickly become the flagship Layer-2 solution for Ethereum, leading in both adoption and total value locked (TVL). Using Optimistic Rollups, it processes thousands of transactions per second and dramatically cuts gas fees compared to Ethereum Layer-1.
Arbitrum’s ecosystem is thriving. Heavyweights like Uniswap, Aave, Curve, and GMX are all integrated, making it the beating heart of Ethereum DeFi. Beyond finance, Arbitrum is also home to NFT marketplaces, gaming apps, and experimental dApps testing new business models.
What makes it especially exciting is Arbitrum Orbit, which lets developers launch their own Layer-3 chains on top of Arbitrum. This creates an ecosystem effect projects can build their own customized rollups while still benefiting from Arbitrum’s security and liquidity.
With ~43% of the Ethereum L2 market share and a vibrant community, Arbitrum is set to remain the backbone of Ethereum scaling in 2025.
Optimism is another major player in the Optimistic Rollup category, but it has a unique vision: to become the open-source foundation for other L2s.
Optimism’s OP Stack has been adopted by multiple projects, including Coinbase’s Base network, making it more of a scaling framework than a single chain. This modular approach has helped Optimism grow beyond just DeFi into DAOs, NFTs, and broader Web3 apps.
Its community governance is another standout. Through the OP token, users help steer Optimism’s roadmap, from funding grants to voting on protocol upgrades. This blend of technology and governance is helping it carve out a reputation as the “Ethereum community’s Layer-2.”
In 2025, Optimism isn’t just scaling Ethereum it’s enabling a family of interoperable Layer-2 networks built on shared technology.
For Bitcoin, scalability has always been a sticking point. The Lightning Network is the most successful attempt to solve it, transforming Bitcoin from “digital gold” into something closer to “digital cash.”
By opening payment channels between users, Lightning allows instant, nearly free Bitcoin transactions. Instead of waiting minutes for block confirmations, payments are completed in milliseconds.
Lightning has already been integrated into exchanges, wallets, and merchant platforms, making it possible to buy coffee with Bitcoin just as easily as with cash.
While adoption is still growing, Lightning remains the key bridge to Bitcoin’s mainstream payment use case.
Polygon is more than a single solution it’s a multi-chain scaling ecosystem designed for Ethereum.
Polygon’s suite includes zkEVMs for privacy and speed, Proof-of-Stake sidechains for cheaper dApps, and bridges connecting Ethereum to BNB Chain and beyond. Its network hosts major DeFi apps like Aave, Curve, and SushiSwap, along with NFT marketplaces such as OpenSea.
Real-world partnerships make Polygon stand out: Reddit, Starbucks, Nike, and Meta all use Polygon for NFT projects or loyalty programs. This makes it not just a scaling solution, but a gateway for enterprises into Web3.
Enterprise pilots have been mixed: Meta and Starbucks wound down their projects, while Nike .SWOOSH and Reddit remain active.
Backed by Coinbase, Base is designed to be the Layer-2 that brings crypto to the masses.
What sets Base apart is Coinbase’s reach. With over 100M verified users, Coinbase can funnel adoption directly into Base, giving it a unique growth advantage. Fees are cut by as much as 95%, making it attractive for DeFi, NFTs, and microtransactions.
Developers also love Base for its familiar Ethereum tooling and its deep integration with Coinbase’s exchange infrastructure. As it grows, Base could become the onboarding bridge between traditional finance and Web3 ecosystems.
Let’s step back for a moment. After reviewing Arbitrum, Optimism, Lightning, Polygon, and Base, one thing becomes obvious: Layer-2s are no longer just “add-ons” to Layer-1 blockchains, they’re evolving into ecosystems of their own.
In 2025, Layer-2s aren’t just helping blockchains run faster. They’re shaping the direction of adoption, innovation, and competition across the entire crypto industry.
Dymension is a modular approach to Layer-2, introducing the concept of RollApps, application-specific rollups built on a secure hub.
Developers can build customized rollups with their own consensus and execution layers while still benefiting from Dymension’s shared settlement security. By using the IBC protocol, Dymension also integrates seamlessly into the Cosmos ecosystem.
This makes it attractive for specialized applications like gaming, DeFi platforms, or NFT projects that want scalability without sacrificing customization.
Coti began as a scaling solution for Cardano but is reinventing itself as a privacy-first Layer-2 for Ethereum.
Its use of garbled circuits ensures transaction confidentiality, making it especially appealing for private DeFi applications. By moving onto Ethereum, Coti gains EVM compatibility, opening its doors to thousands of developers already building in the Ethereum ecosystem.
As privacy becomes a bigger theme in DeFi, Coti could carve out a niche as the zk-powered, privacy-preserving Layer-2.
Manta Network focuses on privacy while scaling Ethereum with zero-knowledge proofs.
Its ecosystem has two key components:
With strong developer support and rapid TVL growth, Manta is quickly becoming the third-largest Ethereum Layer-2. Its blend of privacy and scalability is especially valuable in DeFi, where users increasingly demand both speed and confidentiality.
Starknet is one of the most technically advanced Layer-2 projects, using STARK proofs (a type of zk proof) to scale Ethereum.
Unlike some competitors, Starknet developed its own programming language, Cairo, optimized for zk-proofs. This makes it incredibly powerful but also comes with a steeper learning curve for developers.
Still, with a growing ecosystem of DeFi, NFT, and gaming dApps, Starknet could be a long-term scalability powerhouse. Its cryptographic foundations offer unmatched theoretical throughput.
Immutable X is a Layer-2 designed specifically for gaming and NFTs.
By using zk-Rollup technology, Immutable X provides instant, near-zero fee transactions, making it perfect for NFT minting and in-game asset transfers. Players benefit from true asset ownership, while developers get easy-to-use APIs and tools.
Immutable X has already partnered with multiple Web3 studios and marketplaces, positioning itself as the go-to Layer-2 for gaming ecosystems.
Ethereum’s long-awaited Ethereum 2.0 upgrades promise massive improvements in throughput and scalability. With features like Danksharding and Proto-Danksharding, Ethereum could theoretically reach 100,000 TPS.
But instead of replacing Layer-2s, ETH 2.0 will supercharge them:
Ethereum 2.0 doesn’t kill Layer-2s. It cements them as the future of scalable crypto ecosystems.
Snapshot of major Layer-2 (and analogous) scaling networks: throughput and core tech at a glance.
The Top Layer-2 Crypto Projects of 2025 show us where blockchain is heading. Arbitrum and Optimism dominate DeFi, Lightning makes Bitcoin spendable, Polygon bridges enterprises, and Immutable X powers Web3 gaming. Others like Manta, Coti, and Starknet push forward with privacy and advanced zk-proofs.
Layer-2s are no longer optional add-ons. They are essential infrastructure for the next wave of adoption from gaming and social apps to global payments and tokenized assets.
If 2024 was the year of experimentation, 2025 will be the year Top Layer-2 crypto projects cement their role as the foundation of scalable Web3.
