Ethereum Layer 2 Networks: Arbitrum, Optimism, Base, and Polygon

Arbitrum leads Ethereum’s USD 48B Layer 2 market at nearly 40% TVL, but Base is closing fast with explosive daily transaction growth. Optimism powers the Superchain, while Polygon pivots hard toward low-cost stablecoin payments.

Overview:

• Arbitrum holds 40% of L2 TVL at USD 16.9B, still the clear market leader.
• Base hit nearly 12.9M daily transactions, the fastest-growing L2 by activity.
• Polygon fees dropped below USD 0.005, fueling its payments-focused pivot.

Ethereum built the foundation for decentralized finance, but its own success created a problem. Rising demand pushed gas fees higher and slowed transaction times during busy periods. 

Layer 2 networks emerged to fix this, handling transactions off the main chain while still relying on Ethereum for final settlement and security.

Four major networks in Ethereum’s scaling ecosystem are Arbitrum, Optimism, Base, and Polygon PoS. Each one takes a distinct path toward the same goal of faster, cheaper transactions. 

This article breaks down how these four compare today, backed by current figures, and explains why the Layer 2 market looks the way it does heading into late 2026.

How Layer 2 Scaling Actually Works

A Layer 2 network processes transactions outside Ethereum’s main chain and uses different mechanisms to report or verify transaction data on Ethereum. Rollups use either fraud-proof or validity-proof systems to support settlement. This design keeps fees low without sacrificing the trust Ethereum provides. Most major L2s today run on rollup technology, either optimistic rollups or zero-knowledge rollups, each handling verification a bit differently.

Together, these networks now hold close to USD 48 billion in combined value, spread across more than seventy active rollups. Yet a small group of chains controls most of that activity and liquidity.

Arbitrum Still Leads on Value Locked

Arbitrum remains the largest Layer 2 network by total value locked, sitting near USD 16.9 billion. That figure gives Arbitrum close to 40 percent of the entire Layer 2 market, a lead it has held for some time now. Daily transactions average around 4.3 million, supported by roughly 129,000 active users each day.

Arbitrum runs on Nitro, its own optimistic rollup system, which assumes transactions are valid unless challenged within a set window. Costs stay low for users, with a basic ETH transfer priced near USD 0.0044. Stablecoin reserves on the network have also climbed, now sitting close to USD 4.2 billion.

Base is Closing the Gap Quickly

Built On Coinbase’s User Base

Base, developed by Coinbase using the OP Stack, has grown faster than almost any other Layer 2 network this year. Total value locked now sits near USD 12.8 billion, putting its market share between 30 and 33 percent. That growth pace has surprised even longtime observers of the scaling race.

Daily activity on Base tells an even stronger story. The chain hit nearly 12.9 million transactions in a single day earlier this year, with active addresses crossing 380,000 during peak usage. A few reasons explain this surge:

• Direct access through Coinbase’s exchange and wallet apps
• Transaction fees that often amount to just a few cents
• Strong pickup among everyday consumer crypto apps
• Growth from under USD 3 billion in TVL in late 2024 to over USD 10 billion since

Also Read: 10 Ways Stablecoins Could Change Payments in India

Optimism Powers More than its Own Chain

Optimism, known widely as OP Mainnet, holds a smaller share directly, around USD 1.9 billion in value locked. That translates to roughly 4 to 6 percent of total Layer 2 market share. Daily transactions sit near 2.35 million, with active users ranging from 19,000 to 82,000 depending on how activity gets measured.

Optimism’s real influence, though, goes beyond its own numbers. The OP Stack, an open framework it created, now powers Base and several other chains under what’s called the Superchain vision. This means Optimism shapes a far larger slice of the Layer 2 ecosystem than its standalone figures suggest.

Polygon Shifts Toward Payments and Stablecoins

Polygon’s PoS chain tells a different growth story compared to the three rollups above it. Value locked rose about 18 percent through the first half of 2025, moving from roughly USD 899 million to over USD 1.06 billion. That recovery came even as broader DeFi activity declined during the same period.

Transaction volume remains steady too, with Polygon processing around 4.2 million transactions daily. Average fees have dropped sharply, falling from USD 0.014 in early 2024 to under USD 0.005 more recently. 

Polygon now leans heavily into its AggLayer framework, a system built to connect liquidity across chains using its CDK toolkit. Stablecoin value on the network grew 45 percent in early 2025 alone, crossing USD 2.4 billion.

A Quick Side-By-Side Look

• Arbitrum: Largest TVL overall, deep DeFi liquidity, low-cost token swaps
• Base: Fastest growth in daily users, strong consumer app adoption
• Optimism: Smaller direct footprint, broad influence through the Superchain network
• Polygon: Lowest average fees, growing focus on stablecoin payments

Final Thoughts

The Layer 2 market has developed a clear distribution of value locked, with Arbitrum and Base accounting for a large share of the total. Arbitrum and Base alone now account for close to three-quarters of all value locked across Ethereum’s scaling networks. Smaller rollups are left competing for whatever liquidity and users remain outside that dominant pair.

Choosing between these four networks really comes down to what someone needs from the chain. Arbitrum suits serious DeFi activity, Base fits everyday consumer use, Optimism appeals to developers building within its Superchain, and Polygon continues serving payment-heavy applications well. 

Ethereum’s scaling journey still has room to grow, but these four networks have already become its backbone.

Also Read: Brazil, Thailand and India Strengthen Crypto Regulations and Digital Currency Adoption

FAQs

Which Layer 2 network holds the most total value locked right now? 

Arbitrum leads with close to USD 16.9 billion in value locked, giving it nearly 40 percent of the Layer 2 market. Base follows next with around USD 12.8 billion, narrowing the gap steadily over recent months.

What exactly is the OP Stack, and why does it matter? 

The OP Stack is Optimism’s open-source framework that other networks can build on. Base runs on this technology, which means Optimism’s influence extends well beyond its own transaction and value-locked numbers.

Why has Base grown faster than other Layer 2 networks lately? 

Base benefits directly from Coinbase’s large existing user base and exchange integration. Combined with low transaction fees, this helped the chain reach nearly 12.9 million daily transactions during peak activity periods this year.

How is Polygon different from Arbitrum, Optimism, and Base? 

Polygon operates as a sidechain rather than a rollup and now focuses on payments through its AggLayer framework. The other three networks concentrate more heavily on decentralized finance and general-purpose applications.

Will transaction fees on these networks stay this low in the future? 

Fees depend on Ethereum’s base layer traffic and each network’s own technical choices. Current costs remain well under a dollar, though demand spikes or infrastructure changes could shift pricing over time.