Layer 2s Taking Over Ethereum? How Rollups Are Changing the Game in 2025
Ethereum’s Layer 2 networks like Arbitrum, Optimism, Base, and zkSync are scaling the blockchain faster than ever. But are they competing with Ethereum — or making it stronger?
Hey, it’s Lanzo 👋
Ethereum has come a long way since 2015 — but one challenge never really went away: scalability.
That’s why the rise of Layer 2 networks (L2s) is one of the biggest stories in crypto right now.
In this guide, you’ll learn:
- Why Ethereum needs Layer 2s
- How rollups actually work (Optimistic vs ZK)
- The top L2s in 2025 — Arbitrum, Optimism, Base, zkSync & Starknet
- How bridging, liquidity & fees tie back to Ethereum
- Whether L2s could ever “replace” Ethereum
- What L3s and modular blockchains mean for the future
Let’s unpack how rollups are reshaping Ethereum 👇
Why Ethereum Needed Scaling ⚙️
Back in 2021, gas fees over $100 per swap weren’t rare.
Every NFT mint, every DeFi transaction, clogged the network.
Ethereum developers realized the chain didn’t need a hard reset, just extra lanes.
Vitalik Buterin proposed the “rollup-centric roadmap”:
Ethereum stays the base settlement layer, and L2s handle high-speed transactions off-chain.
This design allows Ethereum to remain secure and decentralized while L2s bring scalability to millions of users.
💡 Lanzo Tip: Think of Ethereum as the Supreme Court — it settles the final record. Layer 2s are the local courts that process cases faster and cheaper.
What Are Layer 2s? 🧩
A Layer 2 network processes transactions outside Ethereum’s main chain, then sends proofs or data batches back to L1 for security.
| Type | Validation Method | Examples |
|---|---|---|
| Optimistic Rollups | Assume transactions are valid unless disputed | Arbitrum, Optimism, Base |
| ZK-Rollups | Use zero-knowledge proofs to verify instantly | zkSync, Starknet, Linea |
Optimistic rollups are easy to deploy and have low costs, while ZK-rollups offer mathematical certainty and faster finality — but with heavier computation.
How Rollups Actually Work 🔍
Here’s a simplified example:
- You swap tokens on Arbitrum.
- The L2 batches thousands of transactions.
- The batch is compressed and submitted to Ethereum.
- Ethereum verifies or stores the proof on-chain.
Result:
✅ Fees drop by 10–50×
✅ Transactions confirm in seconds
✅ Security still comes from Ethereum
This approach unlocks Ethereum’s scalability without sacrificing trust.
Most L2s now use EIP-4844 (Proto-Danksharding) to store data even cheaper via “blobs.”
Meet the Top Layer 2 Networks in 2025 🚀
| Network | Type | Core Strength | Ecosystem Highlights |
|---|---|---|---|
| Arbitrum One | Optimistic | Highest TVL & DeFi liquidity | GMX, Radiate, Pendle |
| Optimism | Optimistic | “Superchain” vision & retro funding | Base + Worldcoin integration |
| Base | Optimistic | Coinbase on-ramp for millions | FriendTech, memecoins, mass adoption |
| zkSync Era | ZK-Rollup | Strong UX + account abstraction | zkStack framework |
| Starknet | ZK-Rollup | Advanced proofs via Cairo | Visa & PayPal pilots |
Together, these networks process over 60% of Ethereum’s daily transactions.
What used to be Ethereum’s weak spot has become its greatest engine for growth.
Optimistic vs ZK Rollups 🧠
| Feature | Optimistic Rollups | ZK Rollups |
|---|---|---|
| Validation | Fraud proof (dispute period) | Zero-knowledge proof |
| Finality | Minutes to hours | Instant once proof accepted |
| Cost | Low | Higher but dropping fast |
| Security | Economic incentives | Cryptographic guarantees |
| Examples | Arbitrum, Optimism, Base | zkSync, Starknet |
ZK technology was long considered “too heavy,” but hardware and math improvements made it viable by 2025.
The competition between Optimistic and ZK rollups drives innovation across the entire Ethereum ecosystem.
Bridging and Liquidity Fragmentation 🌉
Each L2 started with its own bridge and liquidity pools.
Now, interoperability layers like LayerZero, Connext, and Across are connecting them seamlessly.
Still, liquidity fragmentation remains a challenge — tokens may exist as wrapped versions on different L2s.
That’s why many projects build native bridges and unified DEX aggregators.
💡 Lanzo Tip: Before bridging, check if the asset you’re sending has native liquidity on the target L2 — verify on l2beat.com.
Gas Fees and User Experience ⛽️
Thanks to EIP-4844, average L2 transaction fees are often $0.02–0.05.
Users can swap, mint, or bridge in seconds.
Wallets like MetaMask, Rabby, and Rainbow integrate L2s natively — switching networks is as simple as a click.
Account abstraction on zkSync and Starknet adds gasless transactions and social recovery, bringing Web3 UX closer to Web2 apps.
The Business Side: How L2s Compete for Users 💼
Layer 2s aren’t just tech — they’re business ecosystems.
To attract developers and users, they offer airdrops, grants, and retroactive rewards.
- Arbitrum DAO distributed large ARB grants to builders.
- Optimism’s RetroPGF funds public goods retroactively.
- Base leverages Coinbase’s exchange to on-ramp users directly into its chain.
Each approach creates its own mini-economy — a healthy sign for Ethereum’s decentralized future.
Are L2s Competing with Ethereum? 🤔
It might look that way, but they’re actually scaling it.
Every rollup posts data and proofs to Ethereum, paying gas fees in ETH.
More L2 activity = more ETH burned = less supply.
So, instead of Ethereum losing users, it gains value as the security layer for everything.
The Superchain & L3 Future 🌐
Optimism coined the term Superchain — a network of interconnected L2s that share the same governance and revenue model.
zkSync’s ZK Stack lets developers launch their own L3s (custom app-chains) within minutes.
The architecture now looks like this:
- L1 (Ethereum): Security & settlement
- L2: General scaling & ecosystem apps
- L3: Application-specific speed lanes
It’s a modular internet of blockchains — and Ethereum sits at the center.
Security and Decentralization Concerns 🛡️
Even though L2s inherit Ethereum security, some use centralized sequencers to order transactions.
If a sequencer goes down (or acts maliciously), users might face temporary delays.
Projects like Espresso, Astria, and Fairblock are building decentralized sequencing layers to fix that.
In the long run, expect L2s to transition toward multi-operator or proof-of-stake sequencers secured by ETH.
Tokenomics & Governance ⚖️
Most L2s now run DAOs that control protocol upgrades and treasuries.
Tokens like ARB, OP, and STRK are governance assets — not direct ETH replacements.
Their value comes from governance power, ecosystem revenue, and future staking mechanisms.
But ETH remains the final asset of truth — the fuel and security for every L2 transaction.
Lanzo’s Outlook for 2026 🔮
The rollup race is accelerating. Expect to see:
- ZK proofs become default across L2s
- Decentralized sequencers replacing central ones
- Bridges merging into seamless UX inside wallets
- ETH gas revenue rising thanks to L2 usage
- L3 chains for gaming and payments booming
Ethereum’s role as a “settlement layer for the world” is more real than ever.
L2s aren’t taking over Ethereum — they’re helping it scale to billions.
TL;DR 📌
- Layer 2s scale Ethereum off-chain with rollups.
- Optimistic vs ZK = speed vs cryptographic proofs.
- Bridges and aggregators connect liquidity across L2s.
- ETH remains the final settlement asset.
- Future is modular: L1 security, L2 scaling, L3 custom apps.
FAQ
A blockchain built on top of Ethereum that processes transactions off-chain for lower fees and higher speed.
Explore & Secure Ethereum L2s 🔒
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⚡ Lanzo Tip: Track real-time fees on l2fees.info and watch which L2 is cheapest before you bridge or swap.
⚠️ This post is for educational purposes only and does not constitute financial advice.
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Not financial advice. Based on public sources. As of today.