2024 L2 Track Major Shakeup: These 10 Projects Are Worth Watching

If you ask what Layer-2 is, simply put, it’s like a “highway”—when the mainnet (Layer-1) gets congested, L2 helps you bypass and pass through quickly. Just look at the data: Bitcoin can only process 7 transactions per second, Ethereum handles 15, but Visa easily surpasses 1700 transactions per second. The gap is quite large.

The emergence of Layer-2 breaks this awkward situation. In 2024, the competition in the L2 space has shifted from wild growth to differentiation—some projects quietly profit through Rollup technology, while others invest heavily in zero-knowledge proofs.

What is L2? Explained in one sentence

L2 is not a new chain but a “scaling solution” built on mainnets like Ethereum. It moves transactions off-chain for processing, then consolidates them back to the mainnet for confirmation. The benefits are obvious: transaction speeds increase by 100 times, fees are cut by 95%, but security is still backed by Ethereum.

There are mainly two approaches in the industry: one is Optimistic Rollup, which assumes all transactions are valid unless someone reports otherwise; the other is ZK Rollup, which uses mathematical proofs to verify transaction validity, offering stronger privacy. There’s also Validium, a hybrid approach that balances security and efficiency.

2024 L2 Project Overview

Arbitrum: The leader in the L2 market

• TPS: 2000-4000
• TVL: $10.7B
• ARB Price: $0.19 | Market Cap: $1.08B
• Technology: Optimistic Rollup

Talking about Arbitrum, its position in the industry is rock solid. As of early 2024, it accounts for 51% of Ethereum L2 total locked value. This isn’t hype—Arbitrum’s transaction speed is 10 times faster than Ethereum’s, with fees 95% cheaper.

The project team also understands business, creating a comprehensive ecosystem around the ARB token. DeFi, NFT markets, gaming—everything is covered, and developer friendliness is top in the industry. The only risk is that, as an L2, security still depends on the Ethereum mainnet. But this risk has already been priced in.

Optimism: The second-tier leader in L2

• TPS: 2000
• TVL: $5.5B
• OP Price: No recent data
• Technology: Optimistic Rollup

Optimism and Arbitrum follow the same path—Optimistic Rollup—but market share is somewhat suppressed. Its TVL is less than half of Arbitrum’s, which actually indicates there’s still huge growth potential in the L2 space.

OP’s advantage lies in ecosystem diversity, with major DeFi players like Aave and Curve involved. The project team also emphasizes decentralization, with higher community governance. A peak throughput of 4000 TPS theoretically challenges Arbitrum’s dominance.

Lightning Network: Bitcoin’s secret weapon

• TPS: Up to 1 million+
• TVL: $198M+
• Technology: Bi-directional payment channels

Bitcoin’s scaling approach is completely different from Ethereum’s. Lightning Network isn’t a Rollup; it establishes off-chain payment channels—two users lock funds to open a channel, and transactions between them are instant and extremely cheap. Only the final settlement is on-chain.

This mechanism makes Bitcoin a “lightning-fast” payment tool, suitable for daily small transactions. But it also has obvious drawbacks: high technical complexity, low user adoption, and ongoing security concerns. However, if Bitcoin is to become a true payment system, Lightning is an essential path.

Polygon: The highest market cap L2 matrix

• TPS: 65,000
• TVL: $4B
• MATIC Price: No recent data
• Technology: zk Rollup + Sidechain hybrid

Polygon is somewhat special—it’s not a single L2 but an ecosystem matrix. It offers multiple solutions like zkRollup and Sidechains, allowing users to choose based on needs. Its throughput reaches an astonishing 65,000 TPS, far surpassing Arbitrum.

The ecosystem’s vitality is also a leverage point. OpenSea, Aave, SushiSwap, and other top applications have deep collaborations. DeFi TVL exceeds $845M, and the NFT community is very active. MATIC’s high market cap indicates long-term market confidence.

Base: Coinbase’s new L2 star

• TPS: 2000
• TVL: $729M
• Technology: Optimistic Rollup

The biggest dark horse in 2024 is none other than Base. As Coinbase’s official L2, it has advantages in fundraising, ecosystem development, and user traffic. In just a few months, it has entered the top three L2s, showing strong market confidence in exchange-backed L2s.

Base uses the OP Stack and Optimistic Rollup technology, but with Coinbase’s brand backing and user base, its growth is rapid. Gas fees can be cut to as low as 5% of Ethereum’s, making it very attractive for DeFi users.

Dymension: The modular dark horse

• TPS: 20,000
• TVL: 10.42M DYM
• DYM Price: $0.07
• Technology: RollApps (modular design)

Dymension’s approach is different. It employs modular blockchain design, where each RollApp can freely choose consensus, execution, and data availability schemes. This flexibility theoretically allows it to support more complex applications.

Risks include being a relatively new project with limited user base and TVL still growing. Developer adoption also needs time to validate.

Coti: From Cardano to Ethereum

• TPS: 100,000
• TVL: $28.98M
• COTI Price: $0.02 | Market Cap: $54.5M
• Technology: zk Rollup

Coti shifted from Cardano’s L2 role to become an Ethereum privacy-focused L2. What does this strategic change mean? It’s a bet on the Ethereum ecosystem, giving up on Cardano.

With a design limit of 100,000 TPS, it’s very ambitious, but whether it can truly run remains to be seen. With privacy features, it has some potential in DeFi and NFT sectors, but its ecosystem is just starting.

Manta Network: Privacy DeFi pioneer

• TPS: 4000
• TVL: $951M
• MANTA Price: $0.07 | Market Cap: $33.4M
• Technology: zk Rollup

Manta’s standout feature is privacy. It uses zero-knowledge proofs to hide DeFi transactions—transactions are valid but anonymous. This has special significance in an environment with increasing regulatory scrutiny.

Manta Pacific is an EVM-compatible L2, while Manta Atlantic handles privacy identity management. The two-layer architecture is clear. As of early 2024, it ranks third in Ethereum L2 TVL, indicating rising market recognition of privacy needs.

Starknet: The zealot of STARK proofs

• TPS: 2000-4000 (theoretically up to millions)
• TVL: $164M
• Technology: zk Rollup (STARK proofs)

Starknet uses STARK instead of SNARK, which can theoretically reach millions of TPS. But this power requires heavy computation—developing on Starknet demands high technical skills.

Cairo, its programming language, also has a steep learning curve, so ecosystem growth is slow. However, its followers are true believers, confident in its long-term prospects. TVL is slowly increasing, and the ecosystem is still being built.

Immutable X: Gaming’s exclusive L2

• TPS: 9000+
• TVL: $169M
• IMX Price: $0.23 | Market Cap: $192.61M
• Technology: Validium

Immutable X is designed specifically for gaming. It optimizes the entire NFT creation, trading, and transfer process, with over 4000 TPS ensuring smooth experience and near-zero fees that don’t “suck blood” from players.

The ecosystem includes many mid-to-high level Web3 gaming projects, and OpenSea is integrated. IMX’s liquidity and market cap are solid, reflecting growing institutional interest in the gaming sector.

Will Ethereum 2.0 replace L2?

No. The Danksharding upgrade will push Ethereum’s throughput to around 100,000 TPS, but this will only make L2s stronger, not replace them.

Proto-Danksharding will first optimize L2 cost structures, allowing projects like Arbitrum and Optimism to cut fees further. Then, interoperability between L1 and L2 will become smoother, providing seamless user experience. This is a symbiotic relationship, not a replacement.

Conclusion

L2 is not a temporary solution but a permanent infrastructure for the Ethereum ecosystem. In 2024, competition has evolved from “who’s faster” to “whose ecosystem is better.” Arbitrum remains the leader, Optimism is quietly rising, Base leverages big tech backing to enter the front line, and niche experts like Manta and Immutable X are quietly building.

Bitcoin’s Lightning Network, Polygon’s matrix approach, Starknet’s technological boldness… the future of L2 is diverse, and so are the opportunities.