Best Layer 2 Crypto Projects In 2025

Updated 11th January 2025
Written by Mike
Fact-Checked By Vignesh Selvasundar
Editorial Note: The coinpress Marketing Editor Team provided a neutral viewpoint when creating the content. Though we receive commission for sponsored additions, this has no bearing on our assessments of the subject.

The advent of Layer 2 projects that have become pivotal for many existing blockchain challenges. By establishing on the top of Layer 1 projects, these L2 crypto projects have improved transaction throughput while decentralizing blockchains and maintaining security. In our Layer 2 crypto project list below, we have handpicked the most innovative Layer 2 coins that are leading the evolution in the blockchain domain.

The Layer 2 (L2) world has overcome the myth of not being the profit-turning machine in the crypto domain. As of 11th January 2025, top Layer 2 (L2) coins are moving in the right direction with a mind-blowing market cap of $28,053,352,104, which is only down by 0.03%. If we look at the 24-hour volume, $2,458,158,572, it has shown some dramatic movement. However, don’t forget to check the top gainers and top losers in this section.

$28,053,352,104 -0.03%

Layer 2 (L2) coin Market Cap

$2,458,158,572 -28%

Layer 2 (L2) coin 24h Trading Volume

Top gainers

Gainers Coin Icon

Nigella Chain

$1.16

9.31%
Gainers Coin Icon

CrossFi

$0.685682

9.04%
Gainers Coin Icon

Puffer

$0.787677

8.84%

Top losers

Losers Coin Icon

Glacier Network

$0.01196832

-18.74%
Losers Coin Icon

AlienXChain

$0.01666502

-17.01%
Losers Coin Icon

BitBoard

$0.00040055

-12.15%

L2 Coins To Buy In January 2025

  • Loopring:Improves the speed and cost of blockchain transactions, without compromising on the decentralization.

  • Dymension:One of the top layer 2 crypto projects for 2024, providing innovative scalability solutions for transactions.

  • Starknet:Starknet uses zk-rollups to deliver scalability and security for Ethereum without compromising on decentralization.

  • Optimism:Top layer 2 crypto token for 2024, known for its speedy transactions and reduced fees

  • Arbitrum:One of the best layer 2 crypto projects in 2024, offering fast and cost-effective scaling solutions for Ethereum.

  • Immutable X:Immutable X transforms the gaming and NFT space with zero gas fees and instant trades.

  • Polygon:One of the top Ethereum layer 2 projects for 2024, known for its robust and scalable solutions for Ethereum transactions.

  • Lightning Network:A layer 2 project powering the Bitcoin ecosystem with fast, and low-cost transactions.

Best Layer 2 Cryptos Reviewed

Certain cryptocurrency experts predict that during the upcoming bull run, projects focused on tokenizing Real World Assets (RWA), Non-Fungible Tokens (NFTs), and Decentralized Finance (DeFi) will garner significant attention. In our opinion, Layer 2 crypto projects will also help traders safeguard themselves. Investing in layer 2 cryptocurrency tokens can help traders diversify their holdings by exposing them to strong potential coins.

Loopring ($LRC): Ethereum’s Zkrollup Project Offering Low Transaction Costs

Loopring is a popular DEX that runs on the Ethereum blockchain. The objective is to deliver an efficient, reduce costs, and secure manner of exchanging the different cryptocurrencies. Unlike conventional on-order book-based exchanges, Loopring relies on the zkRollup structure. It adheres to off-chain order matching and payment, which reduces fees and increases the platform’s capacity to handle a large number of trades. Loopring processes over 2,000 transactions per second, making it one of the scalable layer 2 crypto projects.

Loopring 6 months price chart

The zkRollup technique consolidates many transactions in a single proof, which is then checked in the Ethereum mainnet. This type of processing frees a lot of computational work from the Ethereum network. Hence, lower gas fees and faster transaction processing time. Also, it is noteworthy to mention that zkRollups has pretty good privacy as transaction data is not disclosed on the blockchain.

Loopring currently accepts almost all the ERC-20 tokens and other digital currencies. Many features are available for trading with users, which include limit orders and market orders as well as engaging in various trading strategies. This also brings in additional tools, including but not limited to liquidity pools and automated market makers (AMMs), which enable the provision of the necessary liquidity for actual trade. Also, scalability, privacy, and low transaction costs make it a highly likely solution for the future of decentralization in trading.

Key Features

  • LRC offers blockchain scalability, since it claims to cost just 1/100th of Ethereum.
  • After ZKRollups was integrated, Loopring's transaction throughput increased to 2,000 TPS.
  • The project can transform cross-border transactions, making Loopring a high-value coin in the future.

Loopring

Live Price  $0.184181 Coin Symbol  lrc
Circulating Supply  1245991468.94 Market Cap $229503503

Dymension ($DYM): Top Layer 2 Crypto Project Enhancing Trust Layers

Dymension is offering a reliable and scalable ecosystem for executing blockchain applications with the help of optimistic and zk-rollups components. This mix of approaches shows that the transactions’ fulfillment in Dymension can occur with high scalability and increased security at the same time, or with higher priority on one of those aspects. Optimistic rollups in Dymension mean that off-chain transactions are executed quickly, while zk-rollups ensure that these transactions have cryptographic proofs for privacy. This type of structure allows Dymension to process a large number of transactions, and therefore, the company can scale it in the developing marketplace of blockchain systems.

Dymension 3 months price chart

Security is crucial in Dymension since it has stringent procedures that check on any fraudulent activities in the network. It has versatile scaling solutions that combine the merits of both types of rollups. Dymension is well-adapted to applications that require both speed and security. Since the popularity of decentralized finance (DeFi) and other blockchain solutions is still expanding, the offered platform from Dymension will also be in high demand.

It also facilitates Inter-Blockchain Communication (IBC) protocol compatibility with different blockchains. Developers can customize RollApps to meet unique requirements by selecting suitable intelligent contracts, data solutions, and consensus processes.

Key Features

  • Dymension completes off-chain transactions quickly, and zk-rollups ensure that the transaction validity is cryptographically verified for privacy.
  • It is a flexible solution in the Ethereum scaling space that combines the advantages of both rollups.
  • The notable potential of Dymension to rise is why we chose it to be included in our Layer 2 crypto list.

Dymension

Live Price  $1.21 Coin Symbol  dym
Circulating Supply  222289169 Market Cap $268825383

Starknet ($STRK): Ensures Ethereum's Scalability Without Compromising Decentralization

Starknet is a layer 2 scaling solution that leverages zero-knowledge (zk) rollups that provide even more privacy and security. The transactions that take place on Starknet are checked through mathematical computations that prove that the transaction is valid without revealing the actual data associated with the transaction. All this makes Starknet highly secure than traditional blockchains. Zk-proofs guarantee the transaction is not only safe but also unchangeable, which brings a lot of security to the Ethereum system. This focused privacy does not mean sacrifice though; on the contrary, Starknet has a highly scalable solution in the form of zk-rollups. 

Starknet 3 months price chart

Starknet’s architecture supports complex smart contracts and decentralized apps, making it a good option for developers. Additionally, Starknet is also made to fit the growing demand of dApps emerging in the scene, offering the proper means for the creation of more robust and effective decentralized applications. As the blockchain domain develops further, the topics of scaling and privacy are emerging as crucial, and Starknet stands as the innovative project that solves both scaling and privacy issues. Starknet has a solid throughput of up to 4,000 transactions per second (TPS).

Starknet also supports a feature known as Account Abstraction that enables developers to build apps with better UX. With the bull market around the corner, DeFi projects will rely on Starknt for scalability. So, the project has long-term value.

Key Features

  • Starknet users benefit from a better user experience and greatly reduced transaction costs.
  • With Ethereum EIP-4844, StarkNet intends to lower Layer 1 expenses significantly.
  • For version 0.14.0, a market for transaction fees is suggested to expedite transaction finality.

Starknet

Live Price  $0.430221 Coin Symbol  strk
Circulating Supply  2419112366 Market Cap $1040752852

Optimism ($OP): L2 Scaling Solution Processing Transactions Off Chain

Optimism includes off chain transactions and then sending transaction data back to the Ethereum mainnet, as well as their execution and consolidation. By reducing the overall network load, optimism enables faster and lower transaction fees. EVM compatibility allows optimistic DApps to be integrated with Optimism without requiring a rewrite of their code.

Developers who are familiar with Ethereum but seek greater scalability and lower fees are drawn to Optimism because of this. It can be emphasized that Optimism features an integrated challenge mechanism that thwarts fraudulent transactions before they happen. Each of these transactions is examined, and users have the option to contest any that they believe to be fraudulent. Optimistic Rollups to ensure high throughput and that transactions remain cheap, while maintaining Ethereum’s decentralization and security.

Ecosystem of Optimism

Optimism has a transaction speed of around 714 TPS. This means the layer 2 platform can handle transactions up to 26x quicker than Ethereum’s mainnet. As per the platform’s whitepaper OP token is a utility token used for staking, fees, and governance. OP has surged by over 25% in the last year, showing its potential as a top layer 2 coin.

Top Features

  • Optimism Mainnet and other chains will be integrated into a single network of OP Chains with the introduction of Superchain.
  • With approximately $1.345b in stablecoins and a $575.18m total value locked, Optimison (OP) has a $1.6 billion market cap and is one of the best Layer 2 cryptos.
  • Optimism is a unique initiative that can include and finance outside development plans, increasing the likelihood of collaborations and funding.

Optimism

Live Price  $1.78 Coin Symbol  op
Circulating Supply  1351719035 Market Cap $2402208147

Arbitrum ($ARB): Layer 2 Crypto Based On Optimistic Rollups

Arbitrum is a popular Ethereum layer-2 project that uses optimistic rollups to optimize transactions. Arbitrum helps to decentralize transaction execution from the Ethereum mainnet by allowing its users to transact at significantly lower costs and times. Optimistic rollups combine multiple transactions and perform computations off-chain, resulting in fewer transactions and thus lower transaction fees. Arbitrum can process transactions up to 10 times quicker than Ethereum’s mainnet and save up to 95% on gas expenses. Its peak throughput is 40,000 TPS. According to Defilama, as of September 2024, Arbitrum holds $2.57b TVL among Ethereum’s top Layer 2 crypto projects.

Arbitrum's versatile ecosystem

Arbitrum also has the benefit of being completely compatible with the EVM. This means that developers can easily migrate their Ethereum dApps to Arbitrum with minimal code changes, reduce costs, and higher speed.

Arbitrum is developer-friendly, as it provides its users with all of the materials, explanations, and assistance they may require, making it an appealing option for blockchain development. Security is another key component of Arbitrum. Users can rely on Arbitrum’s security and use its challenge mechanism to reverse any transaction they believe is fraudulent, making things even safer. Thus, Arbitrum presents an excellent opportunity to help relieve network pressure through scalability and security while remaining true to the decentralized ethos.

As we see from the whitepaper, the project is moving toward a community-driven future while staying true to its decentralization goals. Its ecosystem supports many gaming platforms, NFT marketplaces, and finance protocols. Uses for the native token, ARB, include network governance, staking, and transaction fees.

Key Features

  • By utilizing a non-custodial exchange, this was one of the first decentralized perpetual exchanges to provide leveraged trading.
  • With over $4.6 billion in stablecoins and $2.5 billion in TVL, Arbitrum is a popular bet for the next bull run as investors are beginning to have faith in this venture.
  • Its challenge mechanism allows users to undo any transaction they think is fraudulent, further enhancing security.

Arbitrum

Live Price  $0.735792 Coin Symbol  arb
Circulating Supply  4210111968 Market Cap $3097834647

Immutable X ($IMX): ETH Layer 2 Crypto For An Improved Web3 Experience

Immutable X is another Layer 2 scaling solution that has been developed for the purpose of supporting NFT assets. It runs on Ethereum but has a different trading layer for NFTs with near-instant settlement, zero gas fees, and high throughput.

It uses ZK-Rollups to reach over 4,000 TPS with almost instantaneous transactions and low fees while preserving robust infrastructure thanks to its Ethereum mainnet. In addition to being utilized for fees, staking, and network fuel, the native coin IMX is also used for governance.

Immutable ecosystem

It has no transaction cost and also presents a strong option for those who are involved in the creation and sale of NFT and collection of the same. This means that Immutable X means that there are fewer transactions concerning gas on the Ethereum network, hence being economical for high trading of NFTs. Furthermore, Immutable X has high throughput, implying that a large number of transactions can be concluded within a very short time, thus making the experience of the user smooth.

Immutable X offers gamers a seamless experience that includes cost efficiency, fast transactions, genuine NFT ownership, and game compatibility. Developers enjoy minimal prices, simple-to-use tools, and a friendly community within a dynamic ecosystem of games, markets, and decentralized apps.

ImmutableX is one of the most prominent Ethereum Layer 2 blockchains in terms of TVL and market share. It also allows NFT minting, trading, and transfer efficiently because of its high throughput capacity. Ethereum-based blockchains are always compared to Bitcoin Layer 2 projects.

Key Features

  • It has many features that make it simple for users to create NFT projects and for us to include it in our Layer 2 crypto list.
  • Users may benefit from Ethereum's user-friendly APIs, zero gas prices, and security.
  • Find fresh and fascinating projects while exploring the immersive marketplace to the immutable market to trade and acquire.

Immutable

Live Price  $1.25 Coin Symbol  imx
Circulating Supply  1719283101.39 Market Cap $2142932526
Polygon

Polygon ($POL): Top Ethereum Layer 2 Project Suitable For NFTs And DeFi Applications

Polygon is a set of protocols based on Ethereum that claims to bring efficiency and affordability to the blockchain. It has multiple scaling solutions – the first one is Plasma chains, the second is known as zkRollup, and the third one is known as Optimistic Rollup.

In line with this mechanism, Plasma Chains Solution by Polygon offers off-chain solutions in the same vein as the Lightning Network. This makes it cost-effective since it reduces the load on the ETH mainnet and equally lowers the transaction fees. The company also offers the zkRollup as well as the Optimistic Rollup, which also brings improved scalability by collecting multiple transactions in one and then concludes with high speed testing.

Polygon chains

Polygon’s dual-layer method enables it to process thousands of transactions per second, and solve Ethereum’s scalability issues. Polygon has a throughput of about 65,000 TPS.

Another significant advantage of Polygon is that it is compatible with EVM, as we’ve already mentioned. This saves developers time and money by enabling them to swiftly transfer their dApps from Ethereum to Polygon. Moreover, Polygon keeps the emphasis on security and decentralization so the project can always stay aligned with the Ethereum ecosystem.

Due to its robust infrastructure, affordability, and scalability, it is one of the most sought-after developments and is thus advised for developers wishing to build their projects on Ethereum.

Key Features

  • It also has a strong DeFi sector with protocols like Aave, SushiSwap, and Curve.
  • The projected TVL for the project is $796 million. It also works flawlessly with the Ethereum Virtual Machine (EVM) thanks to the most recent release of Polygon zkEVM.
  • Developer tools and intelligent contracts can both easily include this. It is simple for users to participate in staking as delegates or voters.

Polygon

Live Price  $0.454066 Coin Symbol  matic
Circulating Supply  1920726438.8 Market Cap $873241378

Lightning Network ($BTC): Best Bitcoin Layer 2 Project With Off-Chain Transactions

The Lightning Network is one of the layer-2 solutions that propose to enhance the Bitcoin network in terms of speed of transactions and their cost. Additionally, it continues to function as a payment-clearing network for off-chain transactions and instantaneous clearing services among the participants. With a throughput of up to 1 million TPS, the platform makes it easy for anyone to use Bitcoin and at a lower cost. The platform supports off-chain transactions using a network of bidirectional payment channels.

Lightning Network 3 months price chart

In order to reduce network traffic and fees, users can complete transactions using Lightning Network outside of the main network of the Bitcoin blockchain. For micropayments and subscription models, it is therefore appropriate for low-value “touch points” and recurring payment types.

They have also mentioned other advantages of the Lightning Network, like its quick settlement time. In comparison to the Bitcoin blockchain, this solution is faster and better because transactions can be cleared within participants in a matter of seconds. Further, the Lightning Network facilitates anonymity for users, and the information regarding the transactions does not go on the mainchain.

Under the guise of Bitcoin payment transactions, the Lightning Network may be the revolutionary light that unlocks new technical frontiers. However, its implementation and deployment are contingent on the user’s acceptance, security issues, and compliance requirements.

The Lightning Network expands Bitcoin’s reach, making it one of the top layer 2 projects to watch out for. While the lightning network is the best Bitcoin layer 2 project, there are more options.

Key Features

  • Users may use the network to access different dApps, conduct daily transactions, and make micropayments.
  • It's critical to balance the advantages of quick and inexpensive transactions.
  • It uses the Bitcoin blockchain's capabilities to carry out off-chain transactions, enabling quicker microtransactions and more scalability.

Bitcoin

Live Price  $94475 Coin Symbol  btc
Circulating Supply  19808650 Market Cap $1873584953276

Layer 2 vs Layer 1 Projects

Layer 2 solutions seek to address the scalability and efficiency of Layer 1 blockchains, or the underlying blockchain. Layer 2 platforms, in a nutshell, provide layer1 blockchains with cheaper transactions while retaining the security features of the layer1 chain. Let’s look at them in detail.

What Are Layer 1 Chains?

Layer 1 refers to the main blockchain architecture or the base layer. The Bitcoin and Ethereum blockchains are perfect examples of layer1 blockchains. They are behind the fundamental operations of the network. Layer1 chains handle things such as security, consensus mechanism, and transaction validation.

Although layer1 blockchains like Bitcoin are pretty solid in their security, they struggle with scalability. This results in slower transaction times and users paying more in fees, especially during peak periods of high demand. Scalability problems often pose a limitation for layer1 blockchains, affecting their adoption and further use cases such as microtransactions. Now, let’s look at how layer 2 solves these challenges.

What Are Layer 2 Platforms?

Layer2 platforms exist on top of layer blockchains. Their goal is to make these layer 1 chains more efficient and scalable. Layer 2 platforms process transactions off-chain, and send the final data back to the main blockchain. This way, they rescue network congestion and transaction costs.

Layer2 solutions use common technologies such as side chains, rollups, state channels to enable faster transaction speed and low transaction fees. They also leverage the decentralization and security of layer 1. Layer 2 solutions make layer1 chains like Ethereum ready for more adoption and practical use cases. Some of the top layer 3 projects are working towards making transaction speeds faster, by making L2 networks even more scalable.

How To Choose The Best Layer 2 Crypto Projects to Invest In?

When selecting the best Layer 2 blockchain projects, keep the following essential criteria in mind:

EVM Compatibility

Layer 2 solutions that provide Ethereum Virtual Machine (EVM) compatibility, such as Arbitrum, ZKSync Era, and Linea, are a good option for developers wishing to transfer their dApp from Ethereum Layer 1 to Layer 2 without having to make significant modifications to their code.

Scalability And Efficiency

Seek out Layer 2 networks with enhanced scalability and efficiency to handle a higher volume of transactions at a reduced expense. This is especially crucial for finance applications, as adoption barriers like high transaction volumes and gas expenses might be substantial.

Security

Verify that the Layer 2 system you select upholds the same degree of decentralization and security as the eth mainnet. ZK-Rollups and other Layer 2 solutions provide more robust security assurances than Optimistic Rollups.

Interoperability

Consider how effectively the Layer 2 solution functions with the Ethereum ecosystem’s various networks and technologies. For example, Coinbase’s Base easily connects with Coinbase tools, users, and products.

Developer assistance

To assist you in creating and implementing your dApp, pick a Layer 2 solution that offers thorough developer assistance, including community resources, documentation, and tools.

Track Record: Seek out Layer 2 networks with an established history of dependability and performance. Review comments and endorsements from other programmers and users who have previously implemented the Layer 2 solution.

What is the best layer2 crypto?

Choosing the best layer 2 crypto platform would depend on your needs. You’d have to factor in needs such as security, scalability, user adoption, and fees. However, Loopring stands out for its comprehensive way of scaling Ethererum thus making it the best layer 2 crypto coin. Polygon’s developer-friendly environment and broad adoption are good reasons to choose it. Polygon is also EMV-compatible, meaning you can easily interact with other Ethereum apps.

Conclusion

We’ve highlighted some of the top layer2 crypto projects in 2024. Each of these solutions help make layer1 chains efficient and scalable. Polygon, Arbitrum, Optimism, Loopring, Starknet, each, offers unique contributions to the ecosystem. As more people continue to adopt blockchain, the demand for these layer2 platforms is bound to increase. 

Frequently Asked Questions

1. What is the fastest-growing Layer 2 blockchain?

Since its official mainnet debut, Base (which originated from Coinbase Exchange) has become the fastest-growing layer 2 blockchain.. It has acquired 1 million unique addresses. Before the Base network's formal debut on August 9, 2023, users had already added 532k addresses by using unauthorized bridges to connect to the chain.

2. Is Layer 2 fast?

In addition to being faster and less expensive than routers, Layer 2 switches do not require an IP address or a routing algorithm to forward data.

3. Are Layer 2 blockchains secure?

An off-chain network or technology constructed on top of a Layer 1 blockchain is called a Layer 2 network. A Layer 2 often functions as an additional blockchain that builds upon the original Layer 1 blockchain and takes over its security assurances.

Mike
Lawrence has been involved with blockchain since the last bull run, crafting comprehensive content across diverse sectors of the industry. Dedicated to delivering meticulously fact-checked, timely, and relevant content, he strives to enhance understanding and awareness within the crypto and blockchain community.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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This content is purely for educational purposes and should not be considered as financial advice. Do your own research before investing in any crypto platform and only invest the amount you can afford to lose.