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Over 100 L2 networks exist, with Coinbase and Kraken launching their own, 8.8M users onboarding, and $8.2B Total Value Locked on Base, learn about the L2
| At a glance | |
|---|---|
| Number of L2 networks | over 100 |
| Total Value Locked on Base | $8.2B |
| Users on Coinbase | 8.8M |
| Users on Kraken | 10M |
Layer 2 networks are secondary protocols built on top of the primary blockchain, aiming to solve scalability issues, increase transaction speed, and reduce fees [1]. They can also introduce smart contract functionality, expanding the potential use cases of the underlying blockchain. Bitcoin Layer 2 solutions, for example, are designed to address the limitations of the Bitcoin network, which can only handle around 7 transactions per second, leading to high fees and long transaction times [1].
The L2 ecosystem is becoming increasingly competitive, with various networks offering unique value propositions and business models [2]. The EVM dominance has led to a rich ecosystem of L2 solutions, each leveraging their business USPs and connections. For instance, Base, an L2 launched on Optimism's technology stack, has exceeded Optimism's Total Value Locked with $8.2B [2]. The cultural impact of Ethereum and its L2s cannot be understated, with various ecosystems attracting participants from degens and regens to financial institutions.
| L2 Network | Total Value Locked |
|---|---|
| Base | $8.2B |
| Optimism | $5.8B |
The real significance of the L2 ecosystem lies in its potential to scale blockchain networks while maintaining their decentralized ethos, with the winning chains cracking the code on truly impactful strategies, whether through specialized purpose, targeting a niche, or making things simple for users [2]. The open question remains whether the current proliferation of L2 networks will lead to a shake-out, where smaller players need to partner up or accept the label of a ghost chain.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jul 10, 2026 · How we report
They aim to increase transaction speed and lower fees by moving computation off the base chain while still settling on the L1 for security.
Optimistic rollups assume transactions are valid unless challenged via fraud proofs, whereas ZK rollups provide cryptographic validity proofs that verify batches before finalization.
EIP‑4844 introduces blob‑type transactions that lower the cost of posting data to Ethereum, reducing fees for rollups and making more applications economically viable.
Fault proofs enable permissionless challenge of invalid state transitions, strengthening the security model and reducing reliance on centralized intermediaries.
No, similar off‑chain scaling approaches exist on other blockchains, such as Bitcoin’s Lightning Network, though the term is most commonly associated with Ethereum.