2-7-2025 – Ethereum’s Layer-2 (L2) protocols have seen explosive growth, with daily transactions increasing 13.6x and throughput rising 24.3x over the past three years, according to data from CEX.IO. These off-chain scaling solutions, built atop Ethereum’s mainnet, are addressing long-standing issues of high gas fees and network congestion, making decentralized applications (dApps) faster and more affordable.
Layer-2 networks like Optimistic Rollups and Zero-Knowledge Rollups process transactions off the main Ethereum chain, reducing costs while maintaining security. The Ethereum Dencun upgrade in March 2024 further slashed L2 fees, and the upcoming Proto-Danksharding phase is expected to boost throughput to 100,000 transactions per second. This has fueled adoption, with L2 networks now handling 97% of Ethereum’s total throughput, per CEX.IO data first reported on X.
The rise of L2 solutions is reshaping the crypto landscape. Projects like Movement Network, a Move-EVM L2, are gaining traction for their interoperability and low-cost transactions. Meanwhile, established L2s like Polygon and zkSync are expanding support for dApps, driving DeFi and NFT growth. However, challenges remain, as some zkRollups face compatibility issues with Ethereum’s Virtual Machine, limiting smart contract functionality.
Analysts see L2s as critical to Ethereum’s future, enabling mass adoption by making blockchain interactions seamless and cost-effective. Investors are closely watching L2 tokens like MOVE and PENGU for potential growth in the 2025 bull market. The next phase of Ethereum’s upgrades, including the Glamsterdam upgrade in 2026, will likely further enhance L2 performance.