Top Layer-2 Blockchain Solutions in 2025

1. Introduction

Ever since Bitcoin brought about a cryptocurrency revolution in the world since its breakthrough in 2013, when its prices had a 51% increase within 12 days of November, there have been several new blockchain platforms that have emerged in its wake. However, a vast majority of these blockchain platforms face issues related to their scalability due to the challenges of low transactions and high latencies. To address and overcome these issues, blockchain platforms and blockchain technology is often regularly modified with new and improved features being added in the form of layers, and this is where Layer 2 Blockchain Solutions come in.

Layer 2 blockchain solutions are defined as improvements on Layer 1 traditional blockchain solutions which have limitations in their design regarding transaction processing rates, fees, and periods. Because of their numerous features and advantages in comparison with Layer 1 blockchain solutions, Layer 2 blockchain solutions continue to make major strides in the market, with their Total Value Locked (TVL) surpassing the $20 billion mark in 2024. 

In this blog, we will be discussing the top Layer 2 blockchain solutions in 2025 that have brought about considerable improvements in how blockchain platforms operate. So let’s begin, shall we?

2. Blockchain Layer-1 vs. Layer-2: Which One is Superior?

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The general use cases of Layer 1 and Layer 2 blockchain solutions might differ, but it is still important to understand which one is a superior choice of blockchain solution in general. Here’s a comprehensive comparison between the common features of Layer 1 and Layer 2 blockchain solutions to highlight why Layer 2 is better:

3. Our Criteria for the Top Layer 2 Blockchain Solutions in 2025

Our list of the best Layer 2 Blockchain Solutions in 2025 was created with the following criteria in mind:

3.1. Scalability (25%): 

The solution's ability to significantly increase transaction throughput (TPS) compared to Layer-1 chains.

3.2. Transaction Costs (20%): 

The reduction in gas fees and overall transaction costs offered by the solution.

3.3. Security (15%): 

How well the solution inherits or enhances the security of the underlying Layer-1 blockchain.

3.4. Transaction Speed (15%): 

The speed at which transactions are processed and confirmed, typically measured in seconds.

3.5. Ecosystem Support & Adoption (10%): 

The number of projects, decentralized applications (dApps), and users currently adopting the solution.

3.6.  Smart Contract Compatibility (5%): 

The ability to support complex smart contracts and decentralized applications seamlessly.

3.7. Interoperability (5%): 

How easily the solution allows cross-chain asset and data transfers between Layer-1 and other Layer-2 chains.

3.8. Developer Tools & Resources (5%): 

The availability of developer-friendly tools, SDKs, and APIs to support integration and innovation.

3.9. Energy Efficiency (5%): 

The solution's ability to minimize energy consumption compared to traditional Layer-1 blockchains.

4. Brief Overview of Top Layer 2 Blockchain Solutions in 2025

Based on our aforementioned criteria, we found the following Layer-2 blockchain solutions in 2025 to be the most suitable and fitting picks for our list:

5. Our Picks for the Top Layer 2 Blockchain Solutions in 2025

Here, we will elaborate on our top picks and also explain why we chose them in the first place:

5.1. Polygon

Polygon, which was formerly known as MATIC, is the top-most ranking and leading Layer-2 blockchain protocol that was created to fix the scalability issues of Ethereum. The reason Polygon leads this list is because of its ease in handling transactions on a separate Ethereum-compatible blockchain, followed by returning those transactions back again to the main blockchain. This approach is responsible for significantly lowering the network load on Ethereum.

In addition to this, Polygon is also renowned for allowing users to interact with any dApp on the blockchain network without any congestion issues.

5.1.1. Standout Highlights of Polygon: Why We Chose It

• Fast Processing Time: Polygon easily beats Ethereum when it comes to its block processing time of 2.1 seconds, which is much faster in comparison.
  
  
• Low Transaction Fee: Polygon’s low transaction fee, a meagre amount of $0.01 per transaction, makes it a very popular and widely used choice of Layer 2 solution.
  
  
• Proof-of-Stake Consensus Mechanism: For higher energy efficiency with a much faster turn-around time, Polygon utilizes a Proof-of-Stake consensus mechanism, as compared to Ethereum, which uses a Proof-of-Work consensus mechanism.

5.2. Arbitrum

Arbitrum is a popular choice of blockchain platform to overcome the scalability and congestion issues put forth by Ethereum. This layer-2 blockchain solution is designed with an optimistic roll-up technology where most transactions are processed off-chain, and only the transaction data and a roll-up of the summary are submitted to the Ethereum mainnet. It’s this feature that helps reduce Ethereum congestion, thereby allowing for more cost-efficient transactions.

5.2.1. Standout Highlights of Arbitrum: Why We Chose It

• EVM-Compatibility: Arbitrum is easily compatible with Ethereum virtual machines thanks to its optimistic rollups technology.
  
  
• Seamless Ethereum Integration: Arbitrum is able to seamlessly integrate with existing tools and technologies powered by Ethereum to combine the power of its proprietary virtual machine with optimistic rollups.
  
  
• Reduced Fee: Because of its support for efficient optimistic rollups technology, Arbitrum is able to cut transaction costs and platform fees down to just a tiny, minuscule fraction of costs generally incurred by Layer-1 blockchain solutions.

5.3. Avalanche Subnets

Avalanche is one of the most popular Blockchain networks currently in the market, and it has taken a leap forward into Layer-2 solutions with its central subnets, short for “subnetwork”, which is basically a set of nodes that work together to achieve a singular consensus on transactions that are linked to one or more blockchains. These subnets can also be considered as a network inside of a network, or rather, a network constructed on top of another network with an extensive infrastructure.

This particular Layer-2 blockchain solution has the capability and potential to unlock a whole new door of possibilities in the Layer-2 blockchain space by giving users and developers on the network the power to build custom blockchains and empower Avalanche to scale.

5.3.1. Standout Highlights of Avalanche: Why We Chose It

• Independent Operations: Every subnet on the Avalanche network is able to operate independently, thereby facilitating a process of seamlessly integrating and adding new subnetworks on the blockchain.
  
  
• Decrease in Network Congestion: The use of subnets is able to decrease the network congestion on the blockchain, which also helps in reducing transaction costs.
  
  
• Cross-Chain Transfers: Users on the Avalanche blockchain are powered by an enormous amount of flexibility to tailor their individual subnet and engage in cross-chain transfers to other blockchains without interacting with the X-chain.
  

5.4. Loopring

Loopring, the first Ethereum zkRollup to exist on the blockchain, is a Layer-2 protocol built on Ethereum that enhances the overall transaction experience by processing key elements off-chain. By doing so, it significantly boosts Ethereum’s performance, enabling it to handle transactions at a rate 1,000 times faster than Ethereum's native throughput, with fees as low as a fraction of a cent. 

Loopring’s primary goal is to address Ethereum’s scalability challenges through two innovative mechanisms: ring-based order matching and zkRollups. Ring-based order matching optimizes transactions by grouping multiple buy and sell orders into circular rings, ensuring efficient trade execution. Meanwhile, zkRollups help alleviate congestion on the Ethereum network by processing transactions off-chain and settling them on-chain in batches. These innovations make Loopring one of the most effective Layer-2 solutions for unlocking Ethereum’s potential.

5.4.1. Standout Highlights of Loopring: Why We Chose It

• Trading Support: Loopring’s platform supports the trading and exchange of different cryptocurrency tokens, including ERC-20 tokens and NFTs.
  
  
• Individual Market Cap: Loopring is powered by its individual token, $LRC, which means that the platform is able to power its own market cap.
  
  
• High Throughput: Loopring is able to harness over 2000 transactions per second (TPS), resulting in a massive throughput.
  

5.5. OP Mainnet

The OP Mainnet is a fast and cost-efficient Layer-2 blockchain for Ethereum, powered by Optimism. Developed by OP Labs and utilizing its proprietary OP Stack software, it has become one of the most widely-used Layer-2 solutions. As its name suggests, OP Mainnet leverages optimistic rollups—similar to its competitor Arbitrum—allowing for rapid transactions with minimal fees, all while preserving the robust security of Ethereum’s core architecture. 

Additionally, like many other Layer-2 solutions, OP Mainnet is fully compatible with the Ethereum Virtual Machine (EVM), enabling seamless integration with Ethereum-based applications.

5.5.1. Standout Features of OP Mainnet: Why We Chose It

• EVM Compatibility: The most notable feature of OP Mainnet is its high-level of compatibility and support for EVM-powered blockchain wallets.
  
  
• Miscellaneous Support Tools: Within the OP Mainnet system, there is a plethora of development tools, libraries, and modules available for helping developers.
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• Superchain Capabilities: OP Mainnet is also known for its superchain capabilities, as it is able to connect multiple Layer-2 networks on it through shared code.

6. Comparing The Best Layer 2 Blockchain Solutions in 2025

In this section, we will be drawing a comparison matrix between our chosen picks for the top layer 2 blockchain solutions in 2025 to help you decide which one you can opt for based on your industry requirements or preferences:

7. FAQs (Frequently Asked Questions)

7.1. What is a Layer-2 Blockchain Solution?

A Layer-2 blockchain solution is a secondary framework or protocol built on top of a Layer-1 blockchain (like Ethereum) to enhance scalability and efficiency. It reduces transaction congestion by processing transactions off the main chain, offering faster and cheaper transactions. Layer-2 solutions are crucial for addressing the limitations of Layer-1 blockchains and improving the overall user experience.

For businesses looking to implement or optimize Layer-2 solutions, explore our Layer-2 Cryptocurrency Development Services to help scale your blockchain projects effectively.

7.2. What is the difference between Layer-1 and Layer-2 blockchain solutions?

Layer-1 solutions refer to the base layer of a blockchain (e.g., Ethereum, Bitcoin), responsible for security and consensus. Layer-2 solutions are built on top of Layer-1, designed to improve scalability and reduce costs without compromising security by offloading the main chain’s transactional load​.

7.3. What are the benefits of Layer-2 blockchain solutions?

The key benefits include:

• Increased scalability (handling more transactions per second)
• Lower transaction fees
• Faster transaction processing
• Reduced load on Layer-1 blockchains, improving overall network efficiency

7.4. What are some of the best Layer-2 solutions in 2025?

Popular Layer-2 solutions in 2025 include:

• Polygon (formerly Matic)
• Arbitrum
• OP Mainnet
• Avalanche Subnets
• Loopring
  

7.5. What are the factors and criteria one must keep in mind when choosing a Layer-2 blockchain solution?

Key factors include:

• Transaction speed and fees
• Security model (e.g., zk-Rollups vs. Optimistic Rollups)
• Compatibility with Layer-1 protocols (e.g., Ethereum compatibility)
• Decentralization and validator structure
• Specific use cases such as DeFi, NFTs, or cross-chain transfers​
  

7.6. What are some popular use cases for Layer-2 solutions?

Popular use cases include:

• DeFi (Decentralized Finance) applications
• NFT trading and marketplaces
• Gaming and metaverse projects
• Cross-chain asset transfers
• Enterprise-level blockchain solutions