Layer2 Sector Research Report: Arbitrum, Optimism, Base, zkSync, StarkNet, and Linea
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Layer2 Sector Research Report: Arbitrum, Optimism, Base, zkSync, StarkNet, and Linea
For now, the EVM ecosystem's scaling solutions will ultimately evolve from the mainnet to Layer2, from OP to ZK, and from Layer2 to Layer3, yet the Layer2赛道 is still in a very early stage.
Navigating Web3 tides with focused insightsAuthor: MIIX Capital
Introduction
Gas fees and limited TPS are the biggest obstacles to the widespread adoption and large-scale deployment of public blockchains, leading to the emergence of Layer2 scaling solutions. Layer2 technology has evolved through state channels, Plasma, and Rollups, with each new iteration improving upon the previous one.
Due to insufficient scalability and long withdrawal periods in OP-based systems, Ethereum's latest roadmap centers around ZK Rollup as the core upgrade path. Even Optimism, which currently uses OP technology, is actively exploring an OP+ZK hybrid proof solution. However, at present, Optimistic Rollups still dominate market share, while zk-Rollups require more time for growth and validation.
1. Layer2 Landscape Overview
The Layer2 space is highly competitive today. The following lists live mainnet projects ranked by TVL:
Layer2 projects currently in testnet phase include:
From the data, OP-based technologies continue to dominate TVL among live Layer2s, primarily due to their superior user experience and high TPS, allowing these Layer2s to maintain a strong first-mover advantage within the ecosystem.
2. Optimistic Rollups vs zk-Rollups
2.1 Optimistic Rollups
Optimistic Rollups are a Layer2 scaling solution based on optimistic validation—assuming submitted blocks are valid unless challenged. A RollupOperator batches multiple off-chain transactions, computes the resulting new state (e.g., balances, contract states), generates an off-chain state update, and submits it along with relevant data to the main chain. This state is assumed correct by default and does not require immediate verification. However, there is a fixed challenge period during which anyone can submit a fraud proof to dispute the validity of the state update. If proven invalid, the disputed transaction is re-executed via the EVM; if confirmed fraudulent, the submitter is penalized (e.g., losing staked collateral) and the on-chain state rolls back. If no valid challenges occur during the challenge window, the on-chain state is updated accordingly.
2.2 zk-Rollups
zk-Rollups are a Layer2 scaling solution based on zero-knowledge proofs. First, the RollupOperator aggregates multiple off-chain transactions into a batch, then generates a succinct cryptographic proof (e.g., zk-SNARKs or zk-STARKs) verifying the entire batch’s validity without needing to check each transaction individually. This proof and associated data are submitted to the main chain, where the chain verifies the proof’s correctness to ensure transaction integrity. Upon successful verification, the on-chain contract updates its state according to the included data. Thus, even though transactions occur off-chain, on-chain state remains consistent and secure.
Note: Zero-Knowledge Proof (ZKP) is a cryptographic concept that allows one party (the prover) to prove to another (the verifier) that a statement is true without revealing any additional information beyond the truth of the statement itself. In short, ZKP enables someone to prove knowledge of certain information without disclosing the information.
2.3 Comparative Analysis of ZK vs OP
Both ZK and OP have distinct characteristics. Below is a five-dimensional analysis for readers to assess based on personal preferences:
Verification Method:
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OP uses fraud proofs to verify transactions—assuming validity by default unless evidence proves otherwise. This requires continuous monitoring by off-chain users and nodes to detect malicious behavior from the RollupOperator;
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ZK uses zero-knowledge proofs (e.g., zk-SNARKs or zk-STARKs) to generate a compact proof ensuring the validity of a transaction batch, eliminating the need to validate each transaction individually.
Security:
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OP assumes transaction validity by default, posing potential security risks that depend on active off-chain monitoring by users and nodes;
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ZK provides higher security through mathematical guarantees via zero-knowledge proofs, requiring formal proof of transaction correctness.
Throughput & Performance:
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OP offers fast off-chain transaction processing, but finality may take longer due to the fraud proof challenge period;
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ZK requires significant computational resources to generate proofs, but on-chain verification is extremely fast—once generated, the main chain can quickly confirm validity.
Generality:
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OP is fully EVM-compatible, enabling direct migration of numerous dApps with low computational overhead, suitable for general smart contracts and complex computations;
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ZK technology is still evolving, currently facing limitations in supporting general-purpose smart contracts and complex computation.
Cost:
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OP has relatively lower off-chain transaction costs;
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ZK proof generation demands substantial computing power, potentially leading to higher off-chain transaction costs.
In summary, Optimistic Rollups and zk-Rollups each have strengths and weaknesses. Optimistic Rollups are better suited for complex smart contract scenarios and offer excellent Ethereum compatibility, while zk-Rollups excel in security and privacy protection. Although inherent limitations of OP have pushed Ethereum toward ZK-centric scaling, technological evolution takes time. OP-based Layer2s are also developing hybrid OP+ZK proof systems. Whether OP or ZK will dominate the future remains uncertain.
3. Layer2 Market Data Analysis
Debates over ZK versus OP persist, but ultimately market dynamics decide. Let’s examine detailed Layer2 metrics across transaction volume, TVL, TPS, and other dimensions.
3.1 Layer2 Daily Transaction Volume Surpasses Ethereum Mainnet
Total daily transaction volume on Layer2 has significantly exceeded Ethereum mainnet. As Layer2 continues to grow, this trend is expected to persist. Especially after the Dencun upgrade, Ethereum will separate traditional transaction calldata from Rollup blob data. EIP-4844 is projected to boost Rollup scalability by 3–5x. I anticipate ETH/BTC exchange rates will rise as the Dencun upgrade approaches, making Layer2 on-chain data movements particularly worth watching.
3.2 TVL and Market Share Distribution
In terms of TVL, Arbitrum consistently holds about 50% market share, peaking at around 65%. The second and third positions are occupied by OP and Base, both OP-based Rollups.
Although Arbitrum reached a record TVL of $8.48 billion on December 9, 2023, its market share has been declining, mainly due to OP’s rapid rise and dilution from new Layer2 launches. OP’s circulating market cap ($2 billion) now exceeds Arbitrum’s ($1.3 billion), and total market cap is only about $1 billion less than ARB. The market shows stronger optimism toward OP, reflected in its higher valuation.
Base’s TVL has recently increased, driven largely by Seamless. Coinbase announced listing of Seamless Protocol’s governance token SEAM—the first and currently only native Base ecosystem project token available on Coinbase. This triggered widespread user engagement and speculative interactions with Base-based projects ahead of potential airdrops.
3.3 Profitability and Trend Analysis of Layer2
Over the past three months, Linea has generated relatively high gas revenue, mainly because its technology is still iterating and overall gas efficiency is suboptimal. During peak activity, zkSync Era contributes more gas, primarily driven by airdrop-related interactions.
Currently, Layer2 profitability models remain unclear. As public infrastructure, it’s difficult to charge users extra fees, so most Layer2s rely on fundraising or token issuance for development and operations.
Comparing issued tokens against ETH price: OP outperforms both Ethereum and other Layer2 tokens. This strength stems from compelling narratives (OP+ZK and OP Stack) and strong capital backing, fueling higher market expectations and broader upside potential. With the Dencun upgrade countdown underway, OP and leading native-token projects are receiving heightened market attention.
3.4 Latest TPS Data Comparison
Driven by the booming NFT inscription trend, real-time TPS across various Layer2 projects has hit new highs. zkSync Era peaked at 62 TPS, followed by Arbitrum at 58. Base and OP did not benefit significantly from this wave, showing no notable spikes in TPS. Nevertheless, current TPS levels still fall short of supporting simultaneous interactions for a future billion-user scale. Layer3 may become an inevitable next step.
3.5 Head-to-Head Project Comparison
In terms of active addresses:
Over the last three months, zksync Era maintains stable activity with ~200k average daily active addresses. Post-token launch, Arbitrum averages ~150k per day, OP ~60k. Arbitrum demonstrates significantly higher ecosystem stickiness than OP. Yet, ARB is valued lower than OP, mainly due to:
1. OP Stack enjoys strong support from major capital and developer communities;
2. OP is officially backed by Ethereum and plans to transition to OP+ZK hybrid proofs;
Based on transaction volume and TVL:
Arbitrum leads by a wide margin, followed by zkSync. StarkNet saw a surge in new users after confirming upcoming airdrop snapshots. I speculate that ZK-based zkSync and StarkNet might announce airdrop details by year-end or Q1 next year. Historically, Rollups during airdrop periods see temporary but significant TVL increases in native projects, providing strong tailwinds for already-launched native tokens and likely driving up their prices.
4. Layer2 Ecosystem Research
Among the top 10 by market share, OP-based Optimism and Arbitrum control over 80%, leaving ZK-based Rollups somewhat behind. However, as key players and promising contenders, ZK Rollups and OP Rollups are evolving competitively and learning from each other. Based on current market performance, we analyze Arbitrum, Optimism, Base, zkSync, StarkNet, and Linea in detail:
4.1 Arbitrum Ecosystem
As a Layer2 scaling solution, Arbitrum uses Optimistic Rollups to increase throughput and reduce gas fees. It bundles multiple transactions into batches and submits them to Ethereum mainnet. Arbitrum is compatible with Ethereum smart contracts, allowing seamless integration with existing dApps and DeFi protocols.
Currently, Arbitrum boasts the highest-quality ecosystem among Layer2s, featuring a rich set of native projects. Having pioneered the Layer2 boom, Arbitrum hosts well-known native projects such as Radiant Capital, GMX, Camelot, and Treasure DAO. In terms of daily active users, Arbitrum shows the strongest retention post-airdrop compared to others. Next, we explore the development status of native ecosystems across different Layer2s, especially those yet to issue tokens:
GMX
Within Arbitrum’s DeFi sector are GMX, Radiant Capital, and Camelot. Arbitrum’s DeFi ecosystem stands out for uniqueness, with many projects built atop GMX’s liquidity pool.
Recently, GMX’s trading volume has rebounded with the broader market, closely correlating with its token price. With OKX Wallet integrating GMX to offer 50x leverage trading, I expect further market rallies could drive higher on-chain volumes and organic growth in GMX token value.
Treasure Dao
Treasure Dao is a non-DeFi project within Arbitrum’s ecosystem, focusing on lightweight, creative, and playful casual games.
AAA games demand massive industrial production capabilities and high capital investment. In competing with traditional Web2 games, lightweight creative games may be the breakthrough point—they allow rapid iteration to find optimal economic models and deliver instant fun rather than burdensome grinding, which is often unsustainable.
4.2 Optimism Ecosystem
Optimism is another Layer2 solution using optimistic rollups to improve throughput and reduce gas fees. It was the first to enable users to bridge funds from L1 with Ethereum security guarantees without paying high gas fees. Designed for EVM compatibility, it supports the Ethereum Virtual Machine and features “fraud proofs” allowing users to challenge invalid transactions.
Compared to Arbitrum, Optimism’s ecosystem shows weaker innovation and hasn’t seen breakout native projects gain traction. However, it has made solid progress in infrastructure, including the modular OP Stack and OP+ZK hybrid proofs, backed by strong capital support. Currently, Velodrome is the primary native project with issued tokens, while most others are non-native, indicating average ecosystem development.
4.3 Base Ecosystem
Base is a Layer2 network developed by Coinbase, a crypto giant with a $20 billion market cap. Built using OP Stack technology, Base operates as an Optimistic Rollup on Ethereum. Its node providers include Blockdaemon, QuickNode, Blast, Safe Wallet, block explorers Etherscan and Blockscout, and indexing services like The Graph and Covalent. Base hosts several native projects such as Aerodrome (developed by Velodrome), Seamless Protocol, and friend.tech, all emerging as leaders in the ecosystem.
Seamless
Seamless has launched its token, enabling speculation around Aerodrome and Friend.tech. While lacking unique innovations, its listing on Coinbase has drawn attention to Base’s native projects.
Friend.tech
Friend.tech allows buying/selling KOL tokens for direct access to influencers. However, this mechanism has proven unsustainable in practice.
Fren Pet
Fren Pet is a pixel-art pet-raising game operating via intricate tokenomics. As a Web3 game, it emphasizes token economics over intrinsic gameplay enjoyment.
4.4 zkSync Ecosystem
zkSync is a Layer2 solution using zero-knowledge proofs to enhance throughput and reduce gas fees. It aims for full EVM compatibility and supports the Ethereum Virtual Machine. zkSync also features “zkPorter,” enabling transaction aggregation for further gas reduction.
Unlike other ecosystems where DEXes exhibit strong Matthew effects, competition among DEXes on zkSync is fierce, and no standout lending platforms have emerged yet—making it a hotbed for developer and VC investment.
Dmail Network
Dmail Network is an email-related application on zkSync, previously winning first prize at ETH Global hackathons. Its current Unique Active Wallets (UAW) growth is primarily driven by airdrop anticipation.
Tevaera
Tevaera is a gaming platform similar to Treasure Dao on Arbitrum, but with lower game quality. It remains in early development and warrants ongoing observation.
4.5 StarkNet Ecosystem
StarkNet is a Layer2 solution using zk-Rollups to increase throughput and reduce gas fees. It is designed for EVM compatibility and supports the Ethereum Virtual Machine. StarkNet also features “validium,” enabling more complex computations off-chain.
Due to technical constraints, StarkNet suffers from limited TPS and high gas fees, hindering ecosystem growth. However, its development environment fosters innovation, incubating numerous cutting-edge projects:
- StarkWare was the first to propose vertical scaling of Ethereum using recursive techniques, introducing Layer3;
- Decentralized sequencer Madara;
- Dynamic upgradable NFT standard StarkSheet;
- First complete implementation of Uniswap V4 hooks via Ekubo (currently assisting Uniswap in refining V4);
- Cross-chain games and cross-chain game engines;
Precisely due to subpar user experience, StarkNet raises entry barriers for speculators, making it a prime opportunity for builders and innovators—a frontier worth exploring early.
4.6 Linea Ecosystem
Linea is a zk-Rollup-based Layer2 solution enhancing throughput and reducing gas fees. Instead of transpilers or custom compilers, it generates ZK proofs directly from compiled Solidity bytecode. This reduces vulnerability surfaces and hacker risks, while its innovative prover design ensures faster transactions and lower gas costs.
Linea shares ownership under Consensys with MetaMask, giving it massive traffic potential. However, despite using ZK tech, its user experience lags behind contemporaries like Base (which chose OP).
Overall, Linea lacks innovation. Its native ecosystem includes only Mendi Finance as a lending protocol, and non-DeFi developments trail far behind other Layer2s.
5. Conclusion
The Layer2 war continues, with every Rollup exploring decentralization and scaling solutions—including decentralized sequencer networks, modular stacks (ZK Stack, OP Stack), Layer3 architectures, OP+ZK hybrid proofs, account abstraction, and more.
Currently, EVM ecosystem scaling is moving from mainnet → Layer2 → ZK → Layer3, but the Layer2 space remains very early-stage. Each Rollup finds its own survival strategy: Arbitrum through rich, unique DeFi offerings; StarkNet via strong innovation and novel projects; Optimism via capital backing; zkSync through strategic vision; Base through robust innovation and resources.
With the Dencun upgrade approaching, the era of Layer2-centric EVM is about to begin—an exceptional opportunity landscape for investors and a golden chance for developers to capture the next billion users.
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