Layer 2 Networks: Dramatically Lower ETH Transaction Costs

Layer 2 (L2) networks are Ethereum scaling solutions that process transactions off the main Ethereum chain and then batch and submit them to Ethereum mainnet. This approach dramatically reduces costs — by 97–99% compared to mainnet — while inheriting Ethereum's security guarantees. In 2025, L2 networks process over 1.9 million daily transactions.

Arbitrum – Largest Ethereum L2 by TVL

Arbitrum uses Optimistic Rollup technology to process Ethereum transactions at a fraction of mainnet cost. ETH transfers on Arbitrum typically cost $0.001–$0.01. Token swaps on Arbitrum's Uniswap V3 deployment cost $0.05–$0.30, compared to $5–$20 on mainnet during congestion. Arbitrum has the largest DeFi ecosystem of any L2, with billions in total value locked.

Optimism – Fast Finality Rollup

Optimism is another Optimistic Rollup that powers the OP Stack — the technology behind Base (Coinbase's L2), among others. Fees on Optimism are similar to Arbitrum, with transfers costing under $0.05 in most conditions. The Superchain ecosystem built on OP Stack is expanding rapidly in 2025.

Base – Coinbase's L2 Network

Base, launched by Coinbase in 2023, is built on the OP Stack and has become one of the most active L2 networks. Base transactions typically cost $0.001–$0.05, and the network processes millions of daily transactions. For users already on Coinbase, bridging to Base is seamless.

zkSync & Polygon zkEVM

ZK-Rollup based L2s use zero-knowledge proofs to validate transaction batches more efficiently. zkSync Era and Polygon zkEVM offer near-instant finality with fees under $0.05 per transaction. ZK proofs provide cryptographic validity rather than relying on a 7-day challenge period like Optimistic Rollups.

How to Bridge to Layer 2

To use an L2, you first bridge your ETH from mainnet to the L2 using the official bridge (e.g., bridge.arbitrum.io, app.optimism.io). Bridging takes a few minutes and costs a one-time mainnet gas fee. Once on L2, all subsequent transactions are at drastically reduced costs. You can bridge back to mainnet at any time, though Optimistic Rollup withdrawals take 7 days without a third-party bridge.