Best Ethereum Layer 2 Solutions for Ethereum Blockchain

Ethereum, along with being a leading cryptocurrency exchange, has emerged as the largest blockchain smart contract platform hosting thousands of decentralized applications (dApps). With developers and cryptocurrency networks increasingly using Ethereum to develop their decentralized applications (dApps) or DeFi platforms, it is facing the challenges of high traffic congestion, leading to scalability issues and high transaction charges.


To solve these problems, many solutions have been developed by Ethereum and third parties, to allow the developers to develop and run their dApps on the Ethereum blockchain smoothly and efficiently.


In this article, we will discuss the best layer 2 Ethereum solutions that increase the speed and efficiency of your blockchain-based decentralized apps (dApps) on the Ethereum blockchain.

What are Layer-2 Solutions?

Layer-2 solutions have emerged as the possible way to curb network congestion on the Ethereum blockchain to increase the speed and scale of dApps. Built on the top of the Layer 1 chain of the blockchain, Layer 2 solutions work as a secondary framework or protocol to solve the challenges of transaction speed and scalability encountered by developers, dAaps, DeFi, and cryptocurrency networks. Layer 2 Ethereum solutions stay above the Layer 1 chain of the blockchain through smart contracts, providing a link from the blockchain to the apps to reduce congestion in the network, and increase the efficiency of your blockchain-based decentralized apps.

What is Layer 2?

Layer 2 is a common term used to refer to all the Ethereum scaling solutions. It is a separate blockchain working as an extension of Ethereum to enhance its speed and security. Layer 1 is the base blockchain of Ethereum, and Layer 2 solutions are built on top of Layer 1. 

What is the Need for Scaling Solutions?

Due to the rapid increase in the number of people using Ethereum, the blockchain has reached its limit and it is facing network congestion due to high traffic, leading to slow transactions, high gas charges, and scalability issues. This is why the need for scaling solutions arose to solve these problems.

Scaling solutions such as Layer 2 aim to increase transaction speed, and transaction throughput, without compromising on security and decentralization.

Best Ethereum Layer 2 Solutions

Here is the list of best Ethereum layer 2 solutions that will make your dApps run smoothly and efficiently.


Arbitrum Optimistic Rollup is one of the best Ethereum layer 2 solutions for scaling Ethereum blockchain applications. It reduces gas fees by 100 times as compared to layer 1 solutions. Arbitrum performs hundreds of transactions at a time by bundling them into a single transaction on layer 1. Arbitrum actual transaction computation is done off-chain, whereas contract state hashes are stored on-chain. Transaction calls and arguments are also stored on-chain. Launched in May 2021 it can execute 40,000 TPS and has hit over 280k addresses interacting with the network. With a TVL of $3.3 billion, Arbitrum has processed over 14 million transactions so far. 

Polygon (MATIC)

Being the most widely used layer 2 solutions for Ethereum, Polygon is capable of executing up to 7,000 TPS. Polygon was launched in 2017 as the Matic network. With over 2.7 million monthly active users, Polygon has reportedly managed over a billion transactions. The projects that have been leveraged by Polygon include Sushiswap, Chain Games, Quickswap, and Aavegotchi. Having partnerships with top Ethereum projects like Kambria Open Innovation, Graphlink, Mogul Productions, and Umbrella network, Polygon boasts of providing scalable solutions at gas charges lower than Ethereum. With TVL (total value locked) of $4 billion, Polygon provides services like lending, borrowing, blockchain gaming, and NFT marketplaces to over 900 decentralized applications (DApps).


A throughput of 1000x layer 1 and 100 times lower gas charges than the standard Ethereum layer-1 fees makes Loopring stand out from heard of Layer 2 solutions. Launched in March 2020 Loopring can execute 2025 transactions per second. Being a decentralized exchange (DEX), Loopring provides faster and low-cost Layer 2 solutions DApps. Among top Layer 2 solutions and cryptocurrency platforms, Loopring boasts 2,025 TPS, fast transaction processing, and 100x lower gas fees than Ethereum. 

Immutable X

Immutable X was launched by Australian brothers Robbie and James Ferguson in 2018.  With a transaction speed of up to 9,000 TPS, in a short span, Immutable X has emerged as a top NFT-focused Ethereum Layer 2 solution for NFT marketplaces. It allows users to transfer NFTs from one wallet to another at an incredibly low gas fee.


Launched in January 2021 Optimism is one of the best Ethereum layer 2 solutions. It can execute more than 2,000 transactions per second at a very low gas fee. Optimism on its official website claimed that it has helped developers and investors save $1 billion in gas charges during the last year. 

Final Words

As technology is changing every second, blockchain platforms like Ethereum will definitely find more advanced Layer 2 solutions for faster and cheap functionality. Nonetheless, you can pick one of the best Ethereum layer 2 solutions from the above options and read more about the layer 2 crypto list on Cyptoknowmics. 



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