The Rise of Layer 2: Scaling DeFi in 2025

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The Rise of Layer 2

Layer 2 solutions have transformed Ethereum from a congested highway into a multi-lane expressway. Here’s how L2s are reshaping DeFi accessibility and what it means for traders.

L2 Landscape in 2025

Arbitrum and Optimism lead in TVL, while Base has captured retail users with Coinbase integration. zkSync and StarkNet push the boundaries of zero-knowledge technology.

Impact on Trading

  • Transaction fees under $0.10 vs $20+ on mainnet
  • Faster confirmations for better trading experience
  • New protocols launching exclusively on L2
  • Increased retail participation in DeFi

Choosing Your L2

Consider liquidity depth, supported protocols, and withdrawal times. Arbitrum offers the most established ecosystem, while newer L2s may offer token incentives.