Ethereum is slow and expensive. Layer 2 networks fix this. Here is how they work and which ones matter in 2026.
Ethereum at peak demand: $50+ per transaction, 15 TPS. Unusable for everyday use. Layer 2 was built to fix this.
Layer 2 bundles thousands of transactions off-chain, then posts a compressed proof to Ethereum. Fast + cheap, secured by ETH.
Arbitrum: $18B TVL. Base (Coinbase): fastest growing. Optimism: backed by top VCs. zkSync: zero-knowledge proofs.
L2 tokens (ARB, OP) are bets on Ethereum's success. As ETH adoption grows, L2 networks capture the activity and fees.
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