Trade
Trading Type
Spot
Trade crypto freely
Pre-Market
Trade new tokens before they are officially listed
Margin
Magnify your profit with leverage
Convert & Block Trading
0 Fees
Trade any size with no fees and no slippage
Alpha
Points
Get promising tokens in streamlined on-chain trading
Leveraged Tokens
Get exposure to leveraged positions simply
Futures
Futures
Hundreds of contracts settled in USDT or BTC
Options
HOT
Trade European-style vanilla options
Unified Account
Maximize your capital efficiency
Demo Trading
Futures Kickoff
Get prepared for your futures trading
Futures Events
Participate in events to win generous rewards
Demo Trading
Use virtual funds to experience risk-free trading
Earn
Launch
CandyDrop
Collect candies to earn airdrops
Launchpool
Quick staking, earn potential new tokens
HODLer Airdrop
Hold GT and get massive airdrops for free
Launchpad
Be early to the next big token project
Alpha Points
NEW
Trade on-chain assets and enjoy airdrop rewards!
Futures Points
NEW
Earn futures points and claim airdrop rewards
Investment
Simple Earn
Earn interests with idle tokens
Auto-Invest
Auto-invest on a regular basis
Dual Investment
Buy low and sell high to take profits from price fluctuations
Soft Staking
Earn rewards with flexible staking
Crypto Loan
0 Fees
Pledge one crypto to borrow another
Lending Center
One-stop lending hub
VIP Wealth Hub
Customized wealth management empowers your assets growth
Private Wealth Management
Customized asset management to grow your digital assets
Quant Fund
Top asset management team helps you profit without hassle
Staking
Stake cryptos to earn in PoS products
BTC Staking
HOT
Stake BTC and earn 10% APR
GUSD Minting
Use USDT/USDC to mint GUSD for treasury-level yields
More
Promotions
Activity Center
Join activities and win big cash prizes and exclusive merch
Referral
20 USDT
Earn 40% commission or up to 500 USDT rewards
Announcements
Announcements of new listings, activities, upgrades, etc
Gate Blog
Crypto industry articles
VIP Services
Huge fee discounts
Proof of Reserves
Gate promises 100% proof of reserves
Top 10 Layer-2 Blockchain Projects to Watch in 2025: Who Will Be the Next Dark Horse?
Since the birth of Bitcoin to today, blockchain has been continuously evolving. From the initial payment networks to the current DeFi, GameFi, NFT, Metaverse, and Web3 ecosystems, the scope of blockchain applications is expanding rapidly. However, one persistent issue remains—scalability.
Bitcoin can only process 7 transactions per second, Ethereum mainnet handles just 15, while traditional payment systems (like Visa) can process 1700 transactions/sec. This is the so-called “trilemma”: how to achieve scalability while ensuring security and decentralization?
The answer is Layer-2 blockchains. These second-layer networks act like “fast lanes” above the main chain, enabling transactions to be processed at high speed with significantly lower fees. Today, let’s take a look at the top 10 Layer-2 projects to watch in 2025.
What is Layer-2? Simply put, it’s the “main chain accelerator”
Layer-2 blockchains are scalability solutions deployed on top of Layer-1. Imagine Layer-1 (Ethereum, Bitcoin) as a main highway, and Layer-2 as a super-fast express lane built on it.
Transactions are no longer congested on the main chain but are processed on the second layer network, with only the final results recorded on the main chain. The result? Transaction speeds increase tenfold, costs decrease by 90%, and throughput skyrockets.
Layer-1 vs Layer-2 vs Layer-3: The three levels of blockchain scalability
Layer-1: Infrastructure
Ethereum, Bitcoin are Layer-1, responsible for consensus, security, and smart contract execution. But when user activity is high, congestion occurs—transactions slow down, fees rise.
Layer-2: Accelerators
Built on top of Layer-1, these second-layer networks handle transactions and then summarize results back to the main chain. Benefits include faster speeds, lower costs, and strong scalability.
Layer-3: Specialized Layer
Built on top of Layer-2, used for specific tasks such as advanced off-chain computations, dApp interactions, cross-chain communication, etc.
What types of Layer-2 solutions are there? Each has its own approach
1. Optimistic Rollups
Assume all transactions are valid unless someone proves otherwise. Like a neighborhood property management, trusting residents by default but investigating disputes. Fast, low-cost, and reasonably secure.
2. Zero-Knowledge Rollups (zk Rollups)
Use complex cryptographic proofs to verify transactions without checking each one individually. More efficient and privacy-preserving than optimistic rollups.
3. Plasma Chains
Like satellite cities of Ethereum, each handling specific tasks with extremely fast transaction speeds and very low costs.
4. Validium
Verify transactions off-chain but retain on-chain security checks. Offers a perfect balance between speed and cost.
Top 10 Layer-2 Projects to Watch in 2025
1. Arbitrum (ARB) - Dominant Ethereum Layer-2
On-chain Data
Arbitrum uses optimistic rollup technology to boost transaction speeds by 10x and reduce costs by 95%. It already holds over 51% of the Ethereum Layer-2 market share (by TVL).
Developer-friendly with familiar tools and simplified deployment processes. Transitioning towards decentralization via community governance. Ecosystem includes DeFi protocols, NFT marketplaces, gaming platforms, etc. Its native token ARB is used for transaction fees, staking, and governance.
Risks: As a relatively new project, security needs time to be validated. But with a strong development team and active community, Arbitrum is steadily growing.
2. Optimism (OP) - The Best Guarantee of Ethereum Security
On-chain Data
Optimism also employs optimistic rollup technology, offering transaction speeds 26 times faster than Ethereum and costs 90% less. It preserves Ethereum’s security while solving scalability issues.
Moving towards a decentralized community, its ecosystem includes DeFi, NFT marketplaces, and DAOs. Developer-friendly with mature tools. Its native token OP is used for fees, staking, and governance.
Key considerations include its dependence on Ethereum mainnet and the pace of decentralization. Overall, Optimism remains one of the leading Layer-2 solutions.
3. Lightning Network - Bitcoin’s Lightning Solution
On-chain Data
Lightning Network is Bitcoin’s scalability breakthrough. Transactions are instant, fees are nearly zero, and it inherits Bitcoin’s security.
Widely used for small payments, daily transactions, and various dApps. However, entry barriers are high for beginners. Adoption is still growing, and security requires ongoing monitoring.
4. Polygon (MATIC) - The Multi-faceted Multi-chain Ecosystem
On-chain Data
Polygon is not a single Layer-2 but a multi-chain ecosystem. It employs various technologies like zk rollups to provide multiple scalability options for Ethereum.
Its throughput far exceeds Ethereum’s, with very low transaction costs, making it ideal for DeFi and NFTs. Seamlessly connected with Ethereum, BNB Chain, and others. Ecosystem includes major DeFi protocols like Aave, Curve, etc.
Polygon’s ecosystem is highly vibrant, making it a standout in Layer-2.
5. Base - Coinbase’s New Layer-2 Challenger
On-chain Data
Base, launched by Coinbase, is built on OP Stack and optimistic rollup technology. Its goal is to enable near-instant transactions with 95% lower fees.
Inherits Ethereum’s security, with off-chain transaction processing. Backed by Coinbase’s resources and user base, developer-friendly.
Still in early stages but with huge potential. As its ecosystem matures and decentralization advances, Base could become a key bridge connecting Ethereum’s present and future.
6. Dymension - Pioneer of Modular Layer-2
On-chain Data
Dymension is the first Layer-2 in the Cosmos ecosystem, employing a modular design. Each RollApp can optimize performance and security based on its needs.
Uses enshrined rollups embedded permanently for security, interoperates via IBC protocol and other chains. Developers can customize RollApps, choosing suitable consensus mechanisms and data schemes.
Ecosystem is still under development, which might be complex for newcomers. But its modular approach holds significant potential.
7. Coti (COTI) - From Cardano to Ethereum Migrator
On-chain Data
Coti was originally a Layer-2 for Cardano, now migrating to Ethereum. Aims to create a privacy-first Layer-2 with fast speeds, low costs, and privacy protection.
Switching from DAG consensus to EVM-compatible architecture. Privacy features (obfuscation circuits) will be retained. Interoperability with Ethereum and other chains is also strengthening.
Migration takes time and effort, but combining privacy with Ethereum ecosystem is very attractive.
8. Manta Network (MANTA) - Leader in Privacy DeFi
On-chain Data
Manta Network focuses on privacy, offering anonymous transactions and privacy smart contracts. Comprises two modules: Manta Pacific (EVM-compatible Layer-2) and Manta Atlantic (privacy identity management).
Core uses zero-knowledge cryptography to ensure transaction validity while protecting privacy. Also provides Universal Circuits for easy creation of privacy DeFi apps.
Since 2024, popularity has surged, even surpassing Base to become Ethereum’s third-largest Layer-2 (by TVL). Bright prospects ahead.
9. Starknet - The Ultimate Zero-Knowledge Proof Platform
On-chain Data
Starknet uses STARK proofs (a type of zero-knowledge proof) for off-chain transaction validation, with theoretical throughput reaching millions of TPS. Transaction fees are near zero.
Developer-friendly with powerful tools and Cairo programming language. Moving towards full decentralization and community-driven development. Ecosystem includes DeFi, NFTs, gaming, and more.
However, its complex cryptography is not very friendly to beginners, and user base is still small. The project is ongoing, requiring adaptation to continuous upgrades.
10. Immutable X (IMX) - The Gaming Chain Specialist
On-chain Data
Immutable X is designed specifically for gaming, offering scalability, low costs, and high security. Uses zk rollups to reach over 4000 TPS, with instant transaction confirmation and minimal fees.
High efficiency for NFT minting, trading, and transfers on-chain. Very friendly to game developers and players. Ecosystem includes numerous games, marketplaces, and dApps.
As a dedicated Layer-2 for gaming, IMX holds a unique position in Web3 gaming and is worth watching.
How Ethereum 2.0 will impact Layer-2: They will complement, not replace each other
Ethereum 2.0 upgrades, especially Danksharding and Proto-Danksharding, will boost Ethereum’s throughput to 100,000 TPS. What does this mean for Layer-2?
Layer-2 will become more efficient: Danksharding optimizes data costs for Layer-2, making them low-cost safe havens.
Layer-2 fees will further decrease: Proto-Danksharding reduces transaction costs on Layer-2, making on-chain transactions affordable for more users.
Closer integration of Layer-1 and Layer-2: Ethereum mainnet will better support Layer-2 rollups, enabling smoother communication.
User experience will greatly improve: Faster confirmations, less congestion, and nearly negligible fees.
The key point: Ethereum 2.0 won’t make Layer-2 obsolete; instead, it will enable them to thrive. Collaboration between the two is the future of blockchain.
Summary: Layer-2 is not hype—it’s the future
Layer-2 blockchains have become a vital part of the blockchain ecosystem. They make transactions faster, cheaper, and more scalable.
By 2025, from Ethereum Layer-2 projects to Bitcoin’s scaling solutions, these networks are shaping the future of crypto. They open the door to mass adoption, create new opportunities, and prove that blockchain can be fast, affordable, and user-friendly.
If you care about the future of blockchain, Layer-2 is worth deep exploration. Projects like Arbitrum, Optimism, Polygon, Manta Network, Immutable X each have their own strengths. Choosing the right solution allows you to enjoy the benefits of scalability.