Top 10 Ethereum Layer 2 Projects in 2026
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Every time the crypto bull market kicks in, Ethereum mainnet transactions become expensive. As such, several projects have made significant progress in creating cheaper, faster, and more functional layer 2 (L2) networks.
This article provides a technical overview of the best Ethereum layer 2 crypto projects with the most potential in 2026. We consider factors like tokenomics, network activity, market cap, technology, and more.
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The Best Ethereum Layer 2 Coins to Buy Now
The best Ethereum layer 2 projects offer high scalability, low transaction fees, high throughput capacity, strong security, and compatibility with the Ethereum mainnet. Here are the best layer 2 crypto projects in 2026:
- Arbitrum — Best for low-cost transactions
- Optimism — Best for EVM equivalence
- Base (No Token) – Best for gaming, social finance, NFTs, and super apps
- Blast — Most innovative Ethereum L2 project
- Polygon — Most versatile Ethereum scaling solution
- zkSync (ZK) — Top L2 infrastructure using zero-knowledge rollups
- Starknet (STRK) — Best for Layer 2 validity rollup scaling solution
- Immutable X — Best for NFTs and gaming
- Loopring — Best for building decentralized exchanges
- dYdX — Best for decentralized perpetual trading
Analyzing the Leading Optimistic Rollups
Optimistic rollups refer to one of the most widely used Ethereum Layer 2 scaling projects. They process transactions off-chain and submit batches to Ethereum.
These projects below have real usage, a deep ecosystem, and a long-term relevance within Ethereum’s scaling roadmap. They also prioritize EVM compatibility, cheap fees, and strong Ethereum integration.
1. Arbitrum (ARB) – Best for Low-Cost Transactions
Arbitrum is the best Ethereum layer 2 project for low-cost transactions due to its advanced scaling technology. It significantly reduces gas fees, making transactions cheaper compared to other L2 solutions like Optimism. This cost efficiency is achieved through its optimistic rollup technology, which batches multiple transactions before submitting them to the Ethereum mainnet, minimizing fees.
Arbitrum supports Ethereum-compatible smart contracts and decentralized applications (dApps) without compromising speed or performance. Its ecosystem includes Arbitrum One and Arbitrum Nova, both leveraging the Arbitrum Nitro stack for enhanced throughput and reduced costs. With over $2.97 billion in Total Value Locked (TVL), it holds one of the highest TVL among L2 solutions.
Unique features include decentralized governance through the ARB token, which allows users to vote on network upgrades and other proposals. This governance model is complemented by Arbitrum’s security, which is derived from Ethereum’s consensus. Additionally, Arbitrum’s AnyTrust chains offer ultra-low transaction fees, ideal for applications like gaming and social platforms.
To learn more about our thoughts on Arbitrum’s future, read our Arbitrum price prediction.
2. Optimism (OP) – Best for EVM Equivalence
Optimism is considered the best Ethereum Layer 2 project for EVM equivalence. Its design ensures compatibility with Ethereum’s smart contracts and dApps without requiring modifications, making it an ideal choice for developers aiming for efficient deployment on Ethereum.
Optimism uses Optimistic Rollups to achieve scalability and reduce transaction costs. By processing transactions off-chain and only recording the results on Ethereum, it maintains high throughput while leveraging Ethereum’s security. Its ecosystem supports various projects, reflecting its versatility and robust infrastructure.
Unique features include its OP token, which supports governance and incentivizes network participation. Optimism’s roadmap includes continuous improvements to its infrastructure, aiming to enhance performance and expand its ecosystem. With a strong community and a clear vision, Optimism remains a top choice among Ethereum L2s.
3. Base (No Token) – Top dApps L2 Developed by Coinbase
Next, we have Base. One of the leading Ethereum L2 networks that focuses on improving scalability and lowering transaction costs. It was developed by Coinbase to enable seamless onboarding for dApp users, which supports DeFi, NFTS, and Gaming.
By leveraging Optimism OP Stack, Base benefits from secure and low-cost transactions on Ethereum. It can achieve a high throughput of 132+ TPS and billions in Total Value Locked (TVL). It also highlights the importance of open-source tools, developer accessibility, and integration with Coinbase’s ecosystem.
Base is focused on real-world utility and has no plans to release a native token. This bold choice enables Base to prioritize sustainable and organic growth over short-term hype-driven incentives.
4. Blast (BLAST) – Most Innovative Ethereum L2 Project
Blast is the most innovative Ethereum scaling solution due to its unique yield generation mechanism. Unlike other L2s, Blast offers native yield on ETH and stablecoins like USDC, USDT, and DAI, directly integrating Ethereum’s staking and Treasury Bill protocols. This feature allows users to earn passive income without additional steps.
Blast uses an optimistic rollup mechanism to ensure EVM compatibility. This allows seamless deployment of dApps without modifications. Its auto-rebasing feature for ETH and USDB simplifies yield accrual, making it user-friendly for both developers and end-users.
Additionally, it features a gas revenue-sharing model that redistributes net gas fees to dApp developers. Having reached over $500 million in TVL shortly after launch, Blast demonstrated significant growth and potential.
Analyzing the Leading Zero-Knowledge (ZK) Rollups
Zero-knowledge (ZK) rollups use cryptographic proofs to verify transactions instead of relying on fraud challenges. Each batch of transactions is proven mathematically before being finalized on Ethereum. This allows for faster finality, stronger security guarantees, and efficient scaling.
The ZK rollups below were chosen based on technical maturity, mainnet usage, developer adoption, and EVM compatibility. They focus on high throughput, lower fees, and trust-based execution.
1. Polygon (MATIC/POL) – Most Versatile Ethereum Scaling Solution
Polygon is the most versatile Ethereum L2, offering a range of technologies for scaling Ethereum. Its versatility stems from supporting multiple scaling techniques, including Polygon PoS, zkEVM, and Polygon Miden, catering to various developer needs and use cases.
Polygon PoS enhances transaction throughput and reduces gas fees by processing transactions on a sidechain, while zkEVM, an open-source ZK-Rollup, ensures high scalability and low costs with Ethereum Virtual Machine (EVM) compatibility. Polygon ID and Agglayer together focus on blockchain-native identity and trustless cross-chain interoperability.
Polygon 2.0 introduces POL, a hyperproductive token facilitating staking and governance across multiple chains. It aims to unify liquidity and scalability via zero-knowledge (ZK) technology. With a current market cap of $5.27B and a circulating supply of 8.01B POL, Polygon remains a leading choice for developers seeking scalable and versatile solutions.
2. zkSync (ZK) – ZK-Rollup-Based L2 for Scaling and Security
zkSync uses zero-knowledge rollups to improve the speed of transactions while keeping costs low without sacrificing Ethereum’s security. It works by batching transactions off-chain and submitting zk-SNARK proofs to Ethereum. This allows the network to process thousands of transactions per second while protecting transaction details.
The network also supports EVM-compatible applications, which makes it suitable for DeFi, payments, and other smart contract use cases. By focusing on efficiency and user experience, zkSync helps devs deploy scalable apps without sacrificing security in any step.
The native token ZK powers the ecosystem and can be used for transaction fees, governance through DAO, staking rewards, and liquidity incentives. The ERC-20 token has a total supply of 21.00B tokens and a market cap of $492.31M.
3. Starknet (STRK) – Best ZK-Rollup Built for High-Scale Execution
Starknet is an L2 validity rollup that uses zk-STARK proofs to deliver fast, low-cost transactions that are executed off-chain, batched, and verified on Ethereum through cryptographic proofs. This reduces congestion without relying on fraud charges.
The STRK token is used to pay transaction fees, participate in governance, and stake to help keep the protocol secured. It also acts as an incentive to provers and sequences responsible for validating off-chain computation.
What sets Starknet apart from EVM-based rollups is that it uses Cairo, a programming language that’s designed specifically for zero-knowledge computation. This adds a learning curve for developers, but it enables higher efficiency and long-term scalability for complex dApps.
Specialized L2 Projects Reviewed
Some L2s are built with a narrow focus, optimizing for specific use cases like NFTs, DEXs, or high-frequency trading. These specialized designs often trade composability for performance and cost efficiency.
While choosing the projects below, we focused on how their architecture fits their intended use cases, real-world adoption, and protocol maturity. Each of these L2s solves a specific, clear problem that Ethereum struggles with.
1. Immutable X (IMX) – Best for NFTs and Blockchain Gaming
Immutable X is the best Ethereum layer 2 solution for NFTs due to its gas-free minting and trading, combined with instant transaction speeds and scalability. Using StarkWare’s ZK-Rollup technology, Immutable X enables high-volume NFT transactions without compromising security, making it ideal for creators and traders seeking cost efficiency and performance.
Immutable X offers a carbon-neutral platform, contributing to its appeal among environmentally conscious developers and users. The platform provides an API-driven approach, allowing easy integration for developers without deep blockchain knowledge. This feature, along with a global order book that propagates NFTs across multiple marketplaces, enhances the platform’s usability and reach.
Notable differentiators include the Immutable X Marketplace, which supports gas-free transactions, and the $IMX token for staking, governance, and transaction fees. The platform also hosts various high-profile gaming projects like Gods Unchained and Illuvium, leveraging its scalable and secure infrastructure to support next-generation Web3 games.
2. Loopring (LRC) – Best for Building Decentralized Exchanges (DEXs)
Loopring, a blockchain-agnostic protocol, was specifically designed for building decentralized exchanges. It provides DEXs with features like order rings, which match multiple orders circularly to optimize liquidity and efficiency. Unique features include its ability to process trades off-chain while settling them on-chain, blending the efficiency of centralized exchanges with the security of decentralized platforms.
Loopring leverages zero-knowledge rollups to batch multiple transactions off-chain and produce cryptographic proofs verified on the Ethereum mainnet. This ensures Ethereum-grade security while reducing gas fees and increasing transaction throughput.
The LRC token is integral for staking, governance, and earning a share of protocol fees, ensuring network security and community involvement. Loopring remains a top choice for secure and scalable Ethereum transactions.
3. dYdX (DYDX) – Best for Decentralized Perpetual Trading
dYdX is the best Ethereum layer 2 project for decentralized perpetual trading due to its unique off-chain order handling and on-chain state changes. This design significantly improves throughput and reduces gas fees, making it ideal for high-frequency traders and market makers who frequently update their orders.
dYdX supports margin and perpetual trading with up to 20x leverage, catering to professional traders seeking advanced trading tools. Key characteristics of dYdX include its non-custodial nature, ensuring users maintain control over their assets. It uses ZK-Rollups to increase scalability while preserving Ethereum’s security.
Distinctive features of dYdX include its decentralized governance via the $DYDX token, which allows the community to propose and vote on protocol upgrades. Additionally, the platform’s transition to dYdX v4 on the Cosmos SDK aims to further decentralize and enhance performance.
The Best Ethereum Layer 2 Projects by Market Cap
Here’s a list of the largest Ethereum layer 2 projects, ranked by their market cap.
| Coin | Market Capitalization | Description |
| Mantle | $4.37B | Built with modular architecture using optimistic rollups; offers low fees, high throughput, and EVM compatibility. |
| Polygon | $5.27B | Uses sidechains and a plasma framework to increase transaction speed and reduce costs. |
| Arbitrum | $1.31B | Uses optimistic rollups to achieve high throughput and low fees. |
| Optimism | $577.3M | Uses optimistic rollups, providing near-instant transaction finality and lower gas fees, while ensuring Ethereum-level security. |
| Immutable X | $357.24M | Focuses on NFTs, using zkRollups for instant trade confirmation, massive scalability, and zero gas fees. |
| Starknet | $357.3M | Layer 2 validity rollus using zk-STARK proofs to streamline transactions while keeping costs low. |
| zkSync | $492.31M | ZK-rollup focusing on user experience and developer activity. |
What is an Ethereum Layer 2 Project?
Layer 2 networks were created as a response to Ethereum, a layer 1 crypto, having too low throughput to support the amount of traffic on its network. Scaling solutions built on top of Ethereum’s layer 1 blockchain process transactions independently and only do final verifications on the main blockchain. While the most common types of layer 2 networks are sidechains and rollups, there are different shapes and flavors of scaling solutions, including:
- Rollups (zkRollups and optimistic rollups)
- Sidechains
- State/payment channels
- Plasma chains
- Validiums (zkSNARKs and zkSTARKs)
Let’s look at each type of Ethereum layer 2s individually and examine their inner workings.
Rollups
As mentioned, there are two types of rollups: optimistic rollups and zero-knowledge rollups (zkRollups). While they differ in centralization, finality, and data storage, their basic principle works similarly.
The rollups bundle hundreds of separate transactions and report them to layer 1 in a single transaction. As such, the fees accrued only amount to one transaction, making transacting on a rollup a fraction of the cost of one on a layer 1.
While rollup transactions are computed on a separate blockchain, they are reported to and stored on the main chain for finality. As a result, rollups are guaranteed the same security as the main chain because altering a final transaction on the rollup chain would also mean changing the transaction on the main chain.
Optimistic Rollups
Optimistic rollups work under the assumption that all transactions are valid by default — hence the name “optimistic.” In order to spot a potential invalid transaction, they employ a fraud-protection method based on validators reporting the transaction during a specific time frame. This means that they require at least one honest validator at all times.
The most notable optimistic rollup layer 2s include Optimism and Arbitrum.
Pros
- Easy-to-implement EVM-compatibility
- Low hardware costs
Cons
- Difficult to maintain privacy
- Reliance on honest validators
- Slow fund withdrawal period in the case of an invalid transaction
zkRollups
Unlike optimistic rollups, zkRollups don’t have to work under any assumptions. Instead, they use a cryptographic method called zero-knowledge proofs to verify transactions without exposing the identity of the participants or the contents of the transaction. While this increases the network’s security, it also increases its operating costs and complexity.
The most notable zkRollup layer 2s include zkEVM, zkSync, and Starknet.
Pros
- High throughput
- Quick fund withdrawal in case of an invalid transaction
Cons
- Hardware-intensive
- Difficult EVM-compatibility implementation due to code adjustment requirements
Sidechains
Sidechains work differently from rollups in that they maintain their own network state using their own consensus mechanism. As such, they do not benefit from layer one security the same way rollups do, but this comes with the advantage of not storing data on layer 1.
Instead of reporting transactions to layer 1, sidechains run in parallel with layer one, using bridges to transfer assets between the chains. Sidechains are becoming less used as the emergence of rollups grows.
The most well-known sidechain is Polygon, although, as we discussed earlier, it has recently launched a zkRollup chain, zkEVM.
Pros
- Higher throughput than most rollups
- Lower fees (mainly data storage fees and zk proof fees)
- Instant finality
Cons
- Less secure than rollups
- While great as a transitional layer 2, it lacks the “complete package” rollups are aiming for
State/Payment Channels
State or payment channels are peer-to-peer networks that enable two parties to transact among themselves. When looking at their core components, they are most similar to Bitcoin’s Lightning Network. The channels work like IoUs, only submitting the final results to the main blockchain.
These channels’ core purpose is to facilitate micropayments or frequent payments between two parties, as regular on-chain transactions would simply cost too much. On top of that, main chains like Ethereum’s blockchain take time to settle transactions, and that may not be optimal for parties that need to transact often and quickly.
Pros
- Instant finality
- Throughput is not limited by blockchain
- Completely private
- Cheap to operate
Cons
- Parties’ funds need to be locked up in order to transact
- Parties need to trust each other
- Data is less protected than on a blockchain
- New channels require modifications to user wallets
Plasma Chains
Often referred to as a “child” of Ethereum, plasma chains are, in essence, small copies of Ethereum mainnet.
The architecture works by creating root contracts as an element of each of the plasma side chains. This root contract links the child chains to the main chains while establishing a set of rules that guides each of the plasma chains. One thing to note is that plasma is still an under-tested and under-used system, though developers are coming out with new upgrades very quickly.
Pros
- Low transaction costs
- High throughput
- Users can create personalized plasma chains
Cons
- Lax security systems
- Network congestion in certain circumstances
- 7-14-day delays in fund withdrawals are possible
Validiums (zkSNARKs and zkSTARKs)
Validiums are another form of scaling solution that uses off-chain computation in terms of zero-knowledge proofs. Once they finish computing a transaction, they publish proofs directly on Ethereum to verify it.
Validity proofs submitted to Ethereum can come in the form of zkSNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) and zkSTARKs (Zero-Knowledge Scalable Transparent Argument of Knowledge).
Validiums are great for certain use cases, such as blockchain gaming or trading, as they require privacy and scalability equally. However, as with all technologies that use zero-knowledge proofs, they suffer from high hardware costs.
Pros
- High scalability
- Reduced gas fees
- Guaranteed off-chain data validity
Cons
- High hardware costs
- Slow finality time
- Limited support for smart contract integration
Why Invest in Ethereum Layer 2 Blockchain Coins?
As we saw with the Polygon MATIC price in the last bull run, helping solve the scalability issue in crypto can be a very lucrative use case. With that in mind, here are the reasons to buy layer 2 coins.
Improved Scalability and Efficiency
Ethereum’s network currently processes approximately 2.9 million transactions daily, with 300 TPS on average. This boost is a result of the recent upgrades like peerDAS and Fusaka, which enable faster speeds and lower costs. Prior to that, Ethereum handled 15 to 30 transactions per second.
On the other hand, its scaling solutions not only handle more transactions per second on average; they also reduce the necessity of many transactions to be handled directly on Ethereum, making it a win-win situation for the second-largest cryptocurrency by market cap.
Growing Demand and Adoption
Cryptocurrencies as an investment vehicle and development ecosystem are becoming more popular as time passes. This is especially true after the introduction of Bitcoin and Ethereum ETFs, where crypto has de-facto become mainstream.
With increased adoption comes increased demand; with increased demand comes more transactions and more scalability problems. This is where layer 2 scaling solutions step in and provide a much-needed fix.
Reduced Gas Fees
Layer 2 scaling solutions are created to improve scaling. This means higher throughput, as well as lower gas fees.
When comparing an uncongested mainnet to an uncongested layer 2 network, gas fees are often not too different. However, we’ve all seen peak Ethereum mainnet congestion gas fees that reached hundreds of dollars in 2021.
In order to avoid getting caught in such congestion, it’s smart to consider having layer 2 networks in your arsenal.
High Upside Potential
While Bitcoin and Ethereum sit at market caps well over $100 billion, the largest layer 2 by market cap is Mantle, which is at just over $4.37B. Furthermore, many layer 2’s on our list have less than $1 billion market caps.
Although they could present a higher risk, low market cap layer 2s could provide vastly more upside potential than well-established coins like Bitcoin or Ethereum. Therefore, if you are looking for a layer 2 crypto with the most upside, you might want to check smaller market cap projects.
Final Thoughts: What is the Best Layer-2 for Ethereum?
Ethereum layer 2 solutions offer a chance to make the ecosystem usable at scale. They reduce fees, increase throughput, and improve user experience. This allows Ethereum to be part of DeFi, NFTs, gaming, and high-frequency trading without overwhelming the mainnet.
Some networks focus on general smart contract execution, while others focus on cryptographic security via zk proofs. Others focus on specific niche use cases.
Choosing the right network depends on different factors, including technology design, adoption, and token utility. It’s best to do your own research and identify your needs before you commit capital to any L2.
FAQs
What are the layer 2 blockchains?
What are Ethereum layer 2 blockchains?
Is Polkadot a layer 2 blockchain?
References
- L2Beat: The State of the Layer 2 Ecosystem
- L2fees.info: L2 Fees
- Blockonomi: Immutable X: The First Ethereum Layer 2 Scaling Solution for NFTs
- Revelo Intel: dYdX – Project Breakdown
- CoinDesk: Decentralized Exchange dYdX Launches Public Testnet on Cosmos
- MEXC: Ethereum Pushes Past Prior Limits With A Record-Breaking TPS Spike
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