Ethereum Layer 2 Solutions: Who’s Winning the Race for Mass Adoption in 2025?

We’ve seen how Ethereum’s recent market downturn triggered predictable backlash — a surge in meme-driven sentiment and anti-ETH trolling. But Layer 2 protocols on Ethereum remain resilient, continuing their push toward scaling and utility. While some prioritize immediate network performance, others are optimizing for future infrastructure dominance. This analysis explores who is best positioned to capture real-world user mass adoption.

What Are L2 Solutions?

Layer 2 technologies are scaling frameworks that operate above Ethereum’s Layer 1. By executing transactions and smart contract logic off-chain, and submitting compressed rollups or proofs back to L1, they achieve greater scalability. The architecture significantly reduces gas fees and congestion, while upholding Ethereum’s settlement-layer integrity and decentralized trust model.

Why Layer 2 Is Critical to Mass Adoption of Crypto?

One of the biggest barriers holding crypto back is chain scalability. Ethereum, like most L1 blockchains, processes only a small number of transactions per second. When the network gets busy, users experience:

• overloaded traffic,
• higher gas costs,
• delayed transactions.

For regular users, this makes Web3 apps slow, costly, and frustrating to use. Layer 2 fixes that.

That’s how crypto moves from niche tech to everyday tools. By cutting fees, accelerating dApp performance, and preserving core network security, Layer 2 solutions transform blockchain from a bottlenecked system into a functional ecosystem. Without L2, blockchains simply can’t serve the needs of a global user base.

Solutions Breakdown

Arbitrum

Among all L2 networks, Arbitrum leads in both total value locked and daily active users. It was the first optimistic rollup to attract critical DeFi infrastructure, including:

• GMX 
• Radiant Capital
• Dopex
• Camelot 

It also supports Layer 2 deployments of top decentralized platforms including Uniswap, Aave, Balancer, and Curve, positioning Arbitrum as a central pillar in Ethereum’s scalable DeFi architecture.

• 15.27M weekly transactions;
• 1.13M active addresses per week;
• $2.3B in TVL (source: DeFiLlama).

Arbitrum’s growth isn’t limited to DeFi. The network is expanding into new verticals:

• TreasureDAO, cultivating a gaming + NFT ecosystem;
• Redacted Cartel, focused on advanced governance mechanics;
• Arbitrum Orbit, enabling Layer 3 chain deployment.

This signals a long-term strategy for broader ecosystem expansion.

Although Arbitrum and Optimism use similar frameworks—most notably the 7-day wait time for withdrawals—Arbitrum has taken a clear lead. Its focus on efficiency, simplicity, and network growth has turned it into a Web3 activity hotspot.

In a dedicated analysis, Delphi Digital highlighted Arbitrum’s superior scalability and cost profile compared to Optimism and zkSync, pointing to better throughput and optimized security architecture.

Optimism

As one of the earliest Layer 2 projects, Optimism has stayed true to its Ethereum roots, focusing on compatibility and developer accessibility. Its OP Stack and Superchain vision push the idea of a modular L2 network, where chains reinforce each other through shared standards. This framework not only simplifies scaling but also makes it easier for teams to deploy across multiple chains without rewriting their apps.

• 6.25M weekly transactions;
• 581.9K active addresses/week;
• $415.42M TVL (DeFiLlama).

The platform’s rise has been fueled by major institutional support, from Coinbase’s Base network to Worldcoin. These partnerships have fast-tracked ecosystem growth and created fertile ground for developers. DeFi protocols were (and still are) launching in droves:

• Synthetix 
• Velodrome 
• Lyra 
• Aave
• Farcaster 

Optimism’s biggest limitation comes from its core architecture: as an optimistic rollup, it enforces a 7-day exit window for asset withdrawals. While this slows down usability compared to zero-knowledge rollups, which enable faster exits, the tradeoff supports network security. Yet Optimism remains one of the most Ethereum-compatible and infrastructure-ready Layer 2s, offering developers and users a stable, scalable environment for real-world applications right now.

ZK-rollups

Among Ethereum’s scaling technologies, ZK-rollups stand out for their instant finality, enhanced security, and cryptographic precision. Unlike optimistic rollups, they eliminate withdrawal delays and reduce fraud risk. Leading ZK-rollup networks today include:

• zkSync Era 
• Starknet 
• Scroll
• Polygon zkEVM

• 411.67M weekly transactions;
• 58.5K active addresses/week;
• $57.62M TVL (DeFiLlama).

On zkSync Era, users can already interact with platforms like Orbiter Finance, which bridges assets across rollups, or Mute.io, a DEX with built-in yield farming strategies. Other live projects include ZkMarkets and Rhino.fi, expanding the DeFi toolkit.

Starknet, built on the custom Cairo virtual machine, is home to an equally ambitious ecosystem. It features JediSwap and mySwap for decentralized trading, Briq for NFT-based design and construction, and Starknet ID — a Web3-native identity layer for users.

While ZK-rollups excel in performance and security, their ecosystems remain less mature than those of optimistic rollups. Current limitations include lower liquidity, fewer deployed dApps, and higher development overhead. In some implementations, incomplete EVM support also means developers must adapt existing codebases.

Still, in terms of transaction finality, scalability, and cryptographic guarantees, ZK-rollups are already defining the next generation of blockchain architecture. As tooling improves, they could become the default infrastructure for mass Web3 adoption.

Check this out: What is the Ethereum Virtual Machine (EVM)

Who’s Really Leading Among Ethereum L2s?

Leadership in the Layer 2 race comes down to the metrics. Arbitrum shines in user activity, with strong TVL and the highest count of active DeFi protocols. Optimism takes a different approach — focusing on infrastructure. Its OP Stack powers platforms like Base (from Coinbase) and supports a broader vision of a unified superchain architecture..

ZK-rollups, including zkSync, currently lag behind Optimism and Arbitrum in daily usage. But their technological advantages — quicker finality and strong security — set them apart.

zkSync is also prioritizing functionality, releasing tools like Account Abstraction to better serve users and developers. These efforts could make ZK-rollups the next generation of L2 leaders, especially as adoption grows beyond crypto-native applications.

Long-Term L2 Leaders: Optimism vs zkSync

Two L2 names stand out: Optimism and zkSync Era — each building in different directions.

Optimism is engineering the Superchain, a network of OP Stack-based chains with deep integration (like Base from Coinbase). Its modular architecture positions it for powerful network effects.

zkSync Era, meanwhile, represents the more technically advanced ZK-rollup path. Though adoption is slower today, ZK-rollups are favored for their scalability, privacy features, and long-term viability in mainstream Web3 use cases.