How Can Businesses Benefit from Layer 2 Ecosystem Growth?

These solutions process transactions off the main blockchain while relying on the Layer 1 network for security and finality. If you first want to learn more about what L2 blockchains are, you can read our article focused on this topic.

The Layer 2 ecosystem has shown explosive growth with remarkable developments across multiple metrics. The total value locked (TVL) in Layer 2 solutions has reached an impressive 23 billion USD in the end of 2024, showing a substantial growth of more than 100% compared to the beginning of 2024. Total Value Locked (TVL) is calculated by summing up the value of all assets staked or locked in a DeFi platform.

Anyway, a lot has changed since new U.S. policies. The overall sentiment in the cryptocurrency markets has cooled, along with the TVL in L2 blockchains. As a result, the Total Value Locked has dropped back to levels around $10 billion. However, from a long-term perspective, this does not change their potential in any way.

Market Share Analysis

Arbitrum One dominates the ecosystem with 54.69% of the market share, which equals 10 billion USD in TVL 5. The ecosystem now has 33 active Layer 2 projects. Among these, 11 use Optimistic Rollup and 12 employ ZK-Rollup technology. You can discover the difference between Optimistic Rollup and ZK-Rollup in this article.

The uniqueness of Layer 2 platforms lies in their positioning. General-purpose platforms like Arbitrum One, Base, and OP Mainnet handle most traffic. Meanwhile, specialized platforms focused on gaming and specific use cases are emerging to serve different user needs 9.

This growth extends beyond mere numbers. A transformation in blockchain application deployment and usage is underway. Layer 2 solutions now deal with previous scalability concerns effectively. We're entering a new era of blockchain adoption that's more available and efficient than ever.

Real-World L2 Applications

Research into Layer 2 technologies has revealed impressive implementations across various sectors. The sort of thing we love is sharing the most influential applications for your business that we've come across.

Layer 2 Blockchain for Payments

Layer 2 solutions are revolutionizing payment systems through stablecoins and faster transaction processing. The most impressive part is that transactions on some L2 networks cost as little as $0.002 10. This makes micropayments possible for the first time. Data shows that platforms like Base process transactions at 20-100 times cheaper rates than Layer 1 blockchains 11.

Lower fees make it more cost-effective for businesses to process a high volume of transactions, whether for payments, supply chain tracking, or customer rewards programs. This reduction in costs can encourage wider adoption of blockchain-based services, such as enabling micropayments that were previously too expensive on Layer 1.

When it comes to Layer 2 blockchains for payments, the best options depend on the asset and use case. Lightning Network stands out as the top choice for Bitcoin payments, offering instant transactions with near-zero fees, making it ideal for cross-border payments and microtransactions.

For Ethereum-based payments, Arbitrum and Optimism lead the way with low fees and high scalability, while Base (backed by Coinbase) provides an easy on-ramp for mainstream users. Meanwhile, Polygon has gained traction among businesses, securing partnerships with Mastercard, Stripe, and Starbucks.

Gaming and NFT Platforms

The gaming sector shows remarkable innovation. Immutable X, a leading Layer 2 platform, has reached impressive metrics.

• Over 9,000 TPS for trades and 18,000 TPS for transfers 12
• Near-instant transaction finality 12
• Gas-free transactions for most operations 12

Titles such as IMVU, Guild of Guardians, Habbo, Cross the Ages, Undead Blocks, Ember Sword, Planet Quest, Gods Unchained, WAGMI Defense, and Tiny Colony are integrating their Web3 features using Immutable X.

Immutable X token metrics - Over 9,000 TPS for trades and 18,000 TPS for transfers and 3,2 billions gamers worldwide.

Opportunities for Businesses in L2

Infrastructure Projects

Businesses can capitalize on Layer 2 investment opportunities by aligning their operations with the trends in infrastructure development. The $10 billion Total Value Locked (TVL) in Layer 2 solutions reflects growing market confidence, making this an opportune moment for businesses to explore partnerships or projects within this space. Rollups as a Service (RaaS), for instance, provides a streamlined way for businesses to deploy customized Layer 2 solutions, reducing time to market and enabling tailored scalability for applications like decentralized finance (DeFi) platforms, marketplaces, or gaming ecosystems.

Layer 2 Scaling Benefits for Businesses

L2 scaling solutions make blockchain networks faster, more affordable, and easier to use by addressing core scalability challenges: 

Higher transaction throughput: Offloading transaction execution to L2 increases the number of transactions processed per second. This allows blockchain networks to handle more users and applications while maintaining performance. 

Lower transaction costs: Bundling multiple transactions into a single operation reduces the gas fees needed for onchain settlement. This cost reduction makes dApps and other blockchain services more accessible to a wider audience. 

Faster transaction speeds: Processing transactions offchain enables near-instant finality. This speed is a must for use cases that rely on real-time interactions, such as decentralized exchanges or blockchain-based games. 

Improved privacy: Transactions processed on certain L2s, like state channels, remain private until the final state is submitted to the main chain. This keeps sensitive details secure while ensuring blockchain integrity.17

Growth Potential Analysis

Layer 2 solutions show remarkable adoption metrics in our research. The market presents interesting dynamics - Layer 2 tokens lack explicit value accrual mechanisms now, yet future profit distribution models show promise.

These platforms position themselves well for long-term growth. Optimism shows a steadfast dedication to reinvesting earnings into ecosystem development. Successful Layer 2 projects follow patterns like non-dividend growth stocks and focus on expanding their ecosystem rather than distributing immediate profits.

The investment landscape changes faster, and Layer 2 tokens trade with higher beta compared to ETH. This makes diversification vital in such a dynamic market.

Conclusion

Layer 2 solutions stand as the foundations of blockchain scalability and adoption. Research shows these technologies deliver outstanding results in key areas.

Numbers tell a compelling story. Layer 2 platforms now handle over 10 billion USD in total value locked. They support thousands of apps and make new use cases possible that scalability limits previously blocked. These achievements go beyond technical metrics. They bring real business value through lower operational costs and better performance.

The ecosystem shows two vital signs for 2024. Layer 2 solutions see growing enterprise adoption, which signals they're ready for mainstream use. Specialized platforms work alongside general-purpose solutions to create a rich ecosystem that supports the next wave of blockchain breakthroughs.

Layer 2 technology keeps evolving on solid ground. Proven scalability combines with enterprise adoption and strong developer activity. We're stepping into a new era of blockchain utility where Layer 2 solutions shape the future of digital transactions.