Introduction
Ethereum remains the backbone of decentralized finance (DeFi) and smart-contract applications — but success has its costs. High gas fees and network congestion have long frustrated users seeking affordable blockchain transactions.
That’s where Layer 2 (L2) scaling solutions come in. These protocols process transactions off-chain, then settle them on Ethereum’s main network (Layer 1) — keeping the same security while drastically cutting fees and increasing speed.
In 2025, three major L2s dominate headlines: Arbitrum, Optimism, and Base. Together, they handle the majority of Ethereum’s transactions. This article compares their technology, adoption, and decentralization using verified on-chain and independent data — no speculation, no hype.
What Are Layer 2s and Why They Matter
Ethereum Layer 1 processes roughly 15–20 transactions per second (TPS). When usage spikes, fees soar and throughput collapses.
L2 rollups fix this by batching thousands of off-chain transactions and submitting them to Layer 1 as compressed proofs — preserving Ethereum’s security while massively increasing efficiency.
All three networks — Arbitrum, Optimism, and Base — use optimistic rollups, which assume transactions are valid unless a “fraud proof” shows otherwise. To understand how these systems work in detail, check out our comprehensive guide to how Ethereum Layer 2 works.
Today, L2s collectively process many times more transactions than Ethereum itself. According to L2BEAT, Base alone handles over 120 user operations per second (UOPS), compared with Ethereum’s approximately 16.
Think of it like this: Ethereum L1 is a crowded city street; Layer 2 chains are the express highways built above it.
1. Arbitrum — The DeFi Powerhouse
Launch: 2021 by Offchain Labs
Technology: Optimistic rollup with multi-round fraud proofs and EVM compatibility
Core Upgrade: Arbitrum Nitro (2022)
Key Facts (October 2025)
- Activity: ≈ 32.6 UOPS (per day, L2BEAT)
- Value Secured (TVS): ≈ $20.79 billion — #1 among L2s
- Governance: Arbitrum DAO with on-chain voting via ARB token and a Security Council
- Ecosystem: Strong DeFi base — Uniswap, GMX, Camelot DEX, and hundreds more
Strengths
✅ Deep liquidity and highest DeFi TVL
✅ Proven security and transparent governance
✅ Large developer community and robust infrastructure
Limitations
⚠️ Some fraud-proof features have historically been partially implemented — always verify the current stage on L2BEAT risk pages
⚠️ Throughput claims like “40,000 TPS” are theoretical marketing numbers, not observed benchmarks
Verdict: Arbitrum remains the #1 choice for DeFi users and builders focused on liquidity, security, and DAO governance.
2. Optimism — The Infrastructure Backbone
Launch: 2021 by OP Labs
Technology: Optimistic rollup with EVM equivalence and single-round fault proofs
Framework: OP Stack, an open-source toolkit for building Ethereum-secured L2 chains
Key Facts (October 2025)
- Activity: ≈ 14.4 UOPS (OP Mainnet)
- Value Secured (TVS): ≈ $3.94 billion
- Governance: Community-run via the OP token
- Ecosystem: The OP Stack powers chains like Base, World Chain, Unichain, and more
Strengths
✅ Most reused L2 framework in the industry
✅ “Superchain” vision — interoperable L2s sharing liquidity and security
✅ Simplified developer experience and open-source standards
Limitations
⚠️ OP Mainnet’s own TVS is lower than Arbitrum and Base
⚠️ Some OP Stack-based chains still lack fully live fault proofs (“Stage 0” status)
⚠️ Stats like “50+ chains and 17M daily transactions” are not verified by independent sources
Verdict: Optimism is the developer’s choice — ideal for building custom L2s and scalable ecosystems under the Superchain umbrella.
3. Base — The Adoption Engine
Launch: 2023 by Coinbase on the OP Stack
Technology: Optimistic rollup with EVM compatibility
Goal: Bring on-chain activity to mainstream users via Coinbase’s ecosystem
Key Facts (October 2025)
- Activity: ≈ 122.2 UOPS — #1 among all L2s
- 30-Day Volume: ≈ 376 million transactions
- Value Secured (TVS): ≈ $16.39 billion
- Average Fee: ~ $0.001 – $0.002 per tx (cheapest on Ethereum L2)
- Stage: Reached L2BEAT Stage 1 on April 29, 2025 (fault proofs + Security Council)
Strengths
✅ Ultra-low fees and massive user adoption
✅ Seamless integration with Coinbase Wallet and on-ramp
✅ Fastest-growing L2 for consumer apps, NFTs, and memecoins
Limitations
⚠️ Still in early decentralization stages — sequencer and governance remain partly centralized
⚠️ Heavy reliance on Coinbase’s infrastructure and MEV-style priority fee markets
⚠️ Coinbase’s “100M users” is a marketing figure; on-chain activity is the true metric
Verdict: Base is the clear leader in daily activity and affordability, pushing Ethereum toward mass adoption.
Quick Comparison Table
| Metric (Oct 2025) | Arbitrum | Optimism (OP Mainnet) | Base |
|---|---|---|---|
| Daily Activity (UOPS) | ≈ 32.6 | ≈ 14.4 | ≈ 122.2 (#1) |
| Value Secured (TVS) | $20.79B (#1) | $3.94B | $16.39B (#2) |
| Typical Fee Range | $0.01 – $0.10 | $0.01 – $0.05 | <$0.01 (~$0.0016) |
| Decentralization Stage | Mature DAO + multi-round proofs | Rolling out fault proofs | Stage 1 (fault proofs live) |
| Focus Area | DeFi & liquidity | Infrastructure & builder tools | Mass adoption & UX |
| Best For | Traders & DeFi users | Developers & new L2 chains | Beginners & consumer apps |
Choosing the Right L2 for You
🧭 For Beginners: Start with Base — it’s cheap, fast, and easy to use.
🧮 For DeFi Traders: Use Arbitrum for its deep liquidity and DAO security.
🧰 For Builders: Build on Optimism’s OP Stack for scalable custom chains.
Pro Tip: Check current fees and network status on l2fees.info before bridging funds. Prices and latency fluctuate daily.
Final Verdict: No Single Winner — Three Different Champions
- Arbitrum → DeFi Champion: Liquidity, security, and governance
- Optimism → Builder’s Champion: OP Stack powering a multi-chain future
- Base → Adoption Champion: Speed, cost, and mainstream onboarding
Together, they make Ethereum faster, cheaper, and more inclusive than ever. The real victory isn’t one chain winning — it’s Ethereum’s ecosystem scaling to millions of users.
Sources and Further Reading
- L2BEAT — Activity & TVS Dashboards
- GrowThePie Analytics
- l2fees.info — Real-Time Fee Tracker
- Ethereum.org — Optimistic Rollups Overview
- Arbitrum Documentation
- Arbitrum DAO Governance
- Optimism OP Stack Documentation
- Base Official Documentation
- Offchain Labs
- OP Labs