At busy periods, Ethereum gas fees spike, and given this network congestion, transaction speeds drop, adding costs for users. There are Layer-2 scaling solutions that improve this. These solutions handle the bulk of the transaction load off of Ethereum while still securing the chain.
These secondary networks are significantly cheaper and faster which improves Ethereum’s cost and speed of transaction for DeFi, NFTs, and trading. The Best Ethereum Layer-2 Networks with Lowest Gas Fees are designed to help scalability and accessibility for network users, giving faster, cheaper, and more effective blockchain.
What Are Ethereum Layer-2 Networks?
Ethereum Layer-2 networks are scaling solutions to enhance the Ethereum blockchain. Layer-2 networks build on Ethereum to enhance speed and lower fees. They conduct transactions off of the main chain, or in secondary layers, but still use Ethereum to secure and finalize those transactions.
This technology includes Optimistic Rollups and Zero-Knowledge (zk) Rollups. Layer-2 networks solve Ethereum chain’s congestion problems. They lower costs and make DeFi, NFTs, and gaming popular and efficient. Layer-2 networks push the Ethereum framework and Web3 to the forefront.
Key Point
| Layer-2 Network | Key Point (Gas Fee Advantage) |
|---|---|
| Arbitrum One | Very low fees with strong DeFi ecosystem support |
| Optimism | Reduced gas costs via transaction batching |
| Base | Coinbase-backed, ultra-low fees for retail users |
| zkSync Era | Low-cost zk-proofs with fast finality |
| Starknet | Highly scalable with minimal transaction fees |
| Polygon zkEVM | Ethereum-compatible, lower fees than mainnet |
| Polygon PoS | Extremely low fees and fast transactions |
| Linea | Consistently low gas with Ethereum-native compatibility |
| Scroll | Lower fees through efficient zkEVM execution |
| Mantle Network | Cost-efficient architecture reduces gas expenses |
1. Arbitrum One
Built with Optimistic Rollup technology, Arbitrum One is one of the most popular Ethereum Layer-2 Networks. Arbitrum One maintains Ethereum-level security by off-loading the bulk of the work to Arbitrum and only calling Ethereum to verify when necessary. This saves users significant costs on transactions.
Best Ethereum Layer-2 Networks with Lowest Gas Fees – Arbitrum One has a robust DeFi ecosystem and offers quick finality of transactions and a large liquidity base. This popularity attracts many users which has led to widespread adoption of the network by dApps, including Uniswap and GMX. It is the go-to network for traders because of the low-cost transactions and high performance.
Main Use Cases
- Decentralized exchanges (DEX trading like Uniswap, GMX).
- Lending & borrowing platforms.
- Yield farming protocols.
- High-liquidity DeFi applications.
- DAO governance systems.
Key Advantages
- Low gas fees compared to Ethereum mainnet.
- Deep DeFi applications with good liquidity.
- Higher throughput due to Optimistic Rollups.
- Good security with Ethereum compatibility.
2. Optimism
Using Optimistic Rollup technology, Optimism combines many transactions into one to help with congestion on the Ethereum mainnet while preserving security. Optimism also allows users to save a significant amount, up to 90%, on gas fees.
Best Ethereum Layer-2 Networks with Lowest Gas Fees – Known for its simplicity, Optimism is very developer friendly and has a large, growing ecosystem of dApps ranging from DeFi to NFTs. Optimism is focused on their “Superchain” vision which will increase the network’s capabilities and will also help with cross-chain issues.
Main Use Cases
- DeFi and AMM protocols
- Governance and DAO voting
- NFT marketplaces
- Cross-chain dApps in the Superchain
- Ethereum scaling dApps
Key Advantages
- Gas prices drop by ~90%
- Architecture is simple and developer friendly
- Ecosystem growth via Superchain is strong
- Ethereum security
3. Base
Base is an Ethereum Layer-2 Network built on Optimistic Rollups and developed by Coinbase. Base introduces many users to the world of Web3 by offering a secure, cost-effective solution to transact on-chain.
Best Ethereum Layer-2 Networks with Lowest Gas Fees – Base is an inexpensive Layer-2 solution that offers users an easy way to connect to Coinbase. Base is experiencing rapid growth in many dApp ecosystems, particularly in DeFi, gaming, and social with retail traders and newbies.
Main Use Cases
- Retail crypto onboarding.
- Social Web3 apps.
- DeFi protocols.
- NFT trading and gaming.
- Web3 Games.
Key Advantages
- Backed by Coinbase ecosystem.
- Low transaction fees.
- Beginner-friendly onboarding.
- Rapid developer adoption.
4. zkSync Era
Constructed on zk-Rollup technology, zkSync Era is a Layer-2 solution employing zk proofs. It offers Ethereum users significant savings on gas fees while providing higher throughput.
Best Ethereum Layer-2 Networks with Lowest Gas Fees – With a focus on security, finality, and low-cost smart contract execution, zkSync Era strengthens its position as a leading Ethereum Layer-2 solution. Its design is EVM-compatible, allowing developers to port their Ethereum dApps with minimal friction.
Main Use Cases
- Payments and micropayments.
- DeFi protocols.
- NFTs and Smart contracts.
- Cross-chain transfers.
Key Advantages
- Zero-knowledge proofs for security.
- Rapid finality.
- Low-cost execution.
- Highly EVM compatible.
5. Starknet
Starknet is a zk-Rollup Layer-2 built from the ground up with STARK proofs. It achieves high scalability with the tradeoff of strong cryptographic security.
Best Ethereum Layer-2 Networks with Lowest Gas Fees – an abundance of throughput for intelligent contracts, DeFi, and even game-related smart contracts places Starknet as a leader in the dApp ecosystem for its rapidly growing user base.
Main Use Cases
- Advanced DeFi applications
- Blockchain gaming
- AI-based decentralized systems
- High-performance dApps
- NFT ecosystems
Key Advantages
- STARK based cryptography
- Greater scalability
- Cheaper pricing per computation
- Excellent future-proofing
6. Polygon zkEVM
Polygon zkEVM is a zero-knowledge rollup that brings zk proofs to Ethereum while allowing developers to save on gas fees. Its aim is to roll out zk infrastructure for Ethereum across the Ethereum Virtual Machine (EVM).
Best Ethereum Layer-2 Networks with Lowest Gas Fees – Smart contract developers can execute their Ethereum smart contracts on zkEVM with only minor code alterations. Polygon zkEVM drastically cuts the cost of transactions while upholding security and decentralization.
Main Use Cases
- dApp Migration from Ethereum
- DeFi applications
- NFT sales and trades
- Enterprise blockchain
- Web3 infrastructure
Key Advantages
- Full EVM complement
- High Ethereum security
- Lower gas compared to mainnet
- Developer friendly
7. Polygon PoS
Polygon PoS is a sidechain focused on complementing Ethereum to achieve faster and cheaper transactions. Along with zkEVM, it is one of the most prolific scaling solutions on Ethereum.
Best Ethereum Layer-2 Networks with Lowest Gas Fees – Polygon PoS was built for speed and low transaction costs. Polygon has become very popular for DeFi, NFTs, and gaming use cases. The widespread adoption of Polygon across Web3 is clear.
Main Use Cases
- Minting and trading NFTs
- Gaming
- DeFi applications
- Web3 apps
- Microtransactions
Key Advantages
- Very low transactions fees
- Fast block times
- Widespread adoption
- High scalability
8. Linea
Linea is a Layer-2 network built by ConsenSys on a zkEVM framework. It employs zero-knowledge proofs to balance Ethereum’s security and scalability.
Best Ethereum Layer-2 Networks with Lowest Gas Fees – Linea maintains low transaction costs and integrates Ethereum tools like MetaMask seamlessly. This has led to a growing user base among developers for building scalable dApps.
Main Use Cases
- DeFi applications
- NFT platforms
- Enterprise blockchains
- dApps on Ethereum
- Web3 tools
Key Advantages
- zk-rollups for scaling
- Excellent support for MetaMask
- Low gas
- High ETH alignment
9. Scroll
Scroll is a zk-Rollup Layer-2 network fully compliant with the Ethereum Virtual Machine (EVM). It offers a highly scalable and decentralized design.
Best Ethereum Layer-2 Networks with Lowest Gas Fees – Scroll is built to minimize gas costs and validates transactions by doing the bulk of the work off-chain. Because of this, maintaining lower gas costs has made it a popular solution for building DeFi and NFT use cases.
Main Use Cases
- DeFi applications
- NFT ecosystems
- dApps on Ethereum
- Cross-chain
- Scalable smart contracts
Key Advantages
- zkEVM
- High EVM Equivalence
- Lower transaction fees
- Secure validity proofs
10. Mantle Network
Mantle Network is a modular Layer-2 with a design aimed at cost-efficient separation of execution, data availability, and consensus layers.
Best Ethereum Layer-2 Networks with Lowest Gas Fees – Mantle Network has low gas costs and is highly scalable for DeFi and Web3 use cases. The modular design of Mantle helps developers and users engage with the network at a low cost.
Main Use Cases
- DeFi yield platforms
- Liquidity mining systems
- Modular blockchain applications
- Web3 financial products
- Scalable dApp ecosystems
Key Advantages
- Modular architecture design
- Very low gas fee execution
- High scalability potential
- Efficient data availability layer
Why Gas Fees Matter in Crypto Trading?
Affect Trading Profitability
Gas fees contribute to the overall costs when executing trades. These fees can make good trades unprofitable. High gas fees can especially hurt profitability in the case of trades that are executed frequently.
Hit Small Traders Hardest
Gas fees can substantially cut the capital invested in a trade for small retail traders. These fees are negligible for large institutional traders.
Trade Less Frequently or Not at All
When gas fees are high, traders are discouraged from executing trades to rebalance their investment portfolios. Even trading strategies such as arbitrage are used less frequently.
Participation in DeFi is Less Likely
Gas fees that are higher than expected rewards dissuade users from participating in DeFi, stopping them from staking or lending in DeFi. The overall engagement in the DeFi ecosystem is low.
Gas Fees Affect Buying and Selling of NFTs
Gas fees that are too high can make buying or selling NFTs too expensive. This especially creates issues in networks that are busy. This negatively impacts collectors and decreases accessibility.
Higher Gas Fees Affect User Experience and Lead to Lower Adoption
Gas fees that lack predictability and that are high drive users away from the network. Competing blockchains and Layer-2 networks that have better costs are preferred.
Higher Gas Fees Lead to Layer-2 Adoption
High gas fees on Ethereum make the adoption of Layer-2 Networks that are cheaper and that allow traders to execute trades in fewer time more appealing.
Key Factors for Ranking Best Layer-2 Networks
Gas Fee Efficiency
The key aspect for users is the reduction in the cost of gas. Users prefer Layer-2 networks that significantly reduce Ethereum gas costs for frequent transactions and DeFi cash flows.
Transaction Speed (TPS)
An increased rate of transactions with further decreased transaction time significantly enhances the experience of users while trading, playing, or interacting with time-sensitive applications
Security Model
Users can be assured of the safety of their funds and data with a high security model provided by Ethereum based networks or advanced cryptographic proofs like zk-rollups.
Ecosystem Adoption
The presence of a variety of DeFi, NFT, Gaming, and other projects that are actively developing on the network contributes to increased utility and network sustainability.
Developer Activity
A network with a significant number of developers is an indicator of a Layer-2 network that is actively evolving and developing with improvements.
Ethereum Compatibility
Increased Ethereum Virtual Machine (EVM) compatibility assists in the effortless movement of dApps and integrations for developers.
Scalability Potential
In the long run, the network’s ability to deal with the increase in users and transactions without affecting the cost or performance of the transactions is vital.
Best Use Cases of Layer-2 Networks
Decentralized Finance (DeFi) Trading
Due to having significantly lower gas fees and quicker transaction times, DeFi applications such as swaps, lending, and staking predominantly utilize Layer-2 networks.
NFT Minting and Trading
Layer-2 networks provide a low-cost method of minting, buying, and selling NFTs. This drives the adoption of digital ownership through NFTs.
Blockchain Gaming (GameFi)
Layer-2 networks provide fast and low-cost transactions to use for trading within a game and for real-time interactions without lag from the network.
Microtransactions and Payments
Layer-2 networks are suitable for real-world applications of payments and subscriptions that can’t be achieved on high-fee networks.
Web3 Social Applications
Web2 social applications that have frequent interactions, such as posting or messaging, utilize Layer-2 networks due to the very low costs.
Cross-Chain Asset Transfers
Layer-2 bridges are used to transfer assets through Ethereum and other networks to increase liquidity and accessibility in the crypto networks.
Enterprise Blockchain Solutions
Establishing Layer-2 networks within enterprise systems of Blockchain supply, finance, and data systems allows the integration of customizable and scalable systems at affordable costs.
Conclusion
Analyzing major Ethereum Layer-2 networks reveals that Layer-2 solutions are imperative in addressing Ethereum’s gas fees and scalability. Arbitrum One, Optimism, Base, and zkSync Era all utilize Optimistic and Zero-Knowledge Rollups to provide cheaper, faster, and more efficient solutions.
Of all available options, zk-rollup-based networks, Starknet, zkSync Era, and Polygon zkEVM, provide more long-term robust security and scalability. Optimistic Rollups, Arbitrum and Optimism, offer the most adoption and liquidity.
For Ethereum’s future to embrace DeFi, digital trading, NFTs, Web3, and gaming solutions, and the mass adoption of decentralized solutions, it needs Layer-2 networks to remain secure and decentralized.
FAQ
What are Ethereum Layer-2 networks?
Ethereum Layer-2 networks are scaling solutions built on top of Ethereum that process transactions off-chain and reduce congestion on the main network, resulting in lower gas fees and faster transactions.
Why do Layer-2 networks have lower gas fees?
They reduce costs by batching multiple transactions together or using zero-knowledge proofs, which decreases the amount of computation required on Ethereum mainnet.
Which is the cheapest Ethereum Layer-2 network?
Networks like Polygon PoS, Base, and Arbitrum One are known for extremely low transaction fees, making them popular among retail traders.
What is the difference between Optimistic Rollups and ZK-Rollups?
Optimistic Rollups assume transactions are valid unless challenged, while ZK-Rollups use cryptographic proofs to verify transactions instantly, offering higher security and faster finality.
Which Layer-2 network is best for DeFi trading?
Arbitrum One and Optimism are widely used for DeFi trading due to their strong liquidity, ecosystem support, and low transaction fees.
