Ethereum fees used to be $50-200 per transaction. Now, on Layer 2, the same transaction costs $0.01. Here's how Layer 2 works — and which one you should be using.
Ethereum mainnet processes ~15 transactions per second — causing congestion and high gas fees during demand spikes. In 2021, ETH gas fees hit $200+ per transaction. This made DeFi inaccessible for most users. Layer 2 networks solve this by processing transactions off the main Ethereum chain.
Rollups batch thousands of transactions together off-chain, then post a compressed summary to Ethereum mainnet. Your transaction is processed on L2 (fast, cheap) but inherits Ethereum's security (the data is always on mainnet). Result: 10-100x cheaper fees with the same trust level as Ethereum.
Arbitrum ($3.2B TVL): Largest ecosystem, most DeFi protocols. Best default. Base: Coinbase's L2 — simplest onboarding for beginners. Optimism: Strong ecosystem, public goods focus. zkSync: ZK-based proof (more future-proof tech). For most users: start on Arbitrum (deepest liquidity) or Base (easiest UX).
Bridge from Ethereum mainnet to L2 using the official bridge (Arbitrum Bridge, Base Bridge) or Across Protocol (faster). Once on L2, use Uniswap, Aave, GMX — same apps, fraction of the cost. Never use unofficial bridges. Always start with a small test amount when bridging for the first time.
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