Layer 2 chains: how they will change the crypto market in 2025
Layer 2 chains, which are built on top of layer 1 blockchains like Ethereum, offer improved scalability, reduced gas fees, and quicker settlements. They have therefore become the essential infrastructure in the next generation of crypto trading. Layer 2 blockchains offer increased scalability, lower gas fees, and faster settlements.
This guide will explain what a Layer 2 chain is, how it’s transforming crypto-trading in 2025, as well as what traders need to know to stay on top of this rapidly changing landscape.
What Are Layer 2 Chains?
The layer 2 chains are protocols that run on a blockchain (Layer 1), such as Ethereum. Their main goal is to improve transaction throughput while reducing fees, without compromising security.
Key Layer Types:
- Rollups – Optimistic or ZK: Bundle multiple transactions and settle on Layer 1
- State Channels: Off-chain microtransaction channels.
- Plasma Chains are sidechains with independent committers that periodically commit to Layer 1.
Popular Layer 2 Chains include:
- Arbitrum, Optimism, and Ethereum (Optimistic rollups)
- Starknet (Zero knowledge rollups), zkSync
- Base by Coinbase – (built with the Optimism stack)
Why layer 2 chains matter for Crypto Trading in 2020
Trading experiences are being reshaped by Layer 2 chains addressing longstanding issues with Layer 1 chains.
1. Reduced Transaction Costs
Gas fees are a major barrier for Ethereum mainnet users, in particular active traders. Layer 2 chain costs are drastically reduced, making it more feasible for high-frequency traders and those who trade low-value coins.
2. Faster Trade Execution
Layer 2s offer near-instantaneous results, making them ideal for arbitrage strategies, scalping, or automated strategies that rely on speed.
3. Increased Liquidity
The liquidity pools on Layer 2 networks are growing deeper and competitive.
4. Onboarding Retail Traders
Reduced fees and faster speeds attract casual traders. This encourages broader adoption of crypto and reduces the friction involved in entering the market.
How Crypto Trading is Adapting To Layer 2 Chains
DEX Evolution
DEXs, including Uniswa,p SushiSwap Curve, and others, are now expanding to Layer 2s. Uniswap V3 allows traders to benefit from advanced features and lower fees on Arbitrum and Optimism.
Derivatives in Layer 2
Platforms, such as dYdX or GMX on Arbitrum (which is migrating to Cosmos), provide leverage and perpetual contracts with deep liquidity.
Trading Bots and Automation
Trading bots are being integrated with Layer 2 environments to allow users to automate trading strategies over faster and cheaper networks.
Use Layer 2 Chains to Trade
| Feature | Tradesmen Benefit |
| Discounted Rates | You can now trade more per day, without having to worry about gas costs |
| Speed | Near-instant order execution for better market timing |
| Scalability | Handles more users than ever before without congestion |
| Security inheritance | Security of the base chain is still present (e.g., Ethereum). |
| Better UX | Simplifies onboarding and improves the trading experience |
Top layer 2 chains to trade in 2025
| Layer 2 Chain | Type | Popular Trading Platforms | Use Case |
| Arbitrage | Optimistic Rollup | GMX Uniswap Camelot | Perps DeFi Swaps |
| Optimism | Optimistic Rollup | Velodrome | DEX trading, lending |
| Base | OP Stack | Aerodrome, LeetSwap | New Retail User Adoption |
| zkSync Era | ZK Rollup | ZigZag, SyncSwap | Privacy + scalability |
| Starknet | ZK Roll up | JediSwap, Nostra | High-performance DeFi |
Security and Risks for Traders
- Withdrawal Delayed: Optimistic Rollups have a withdrawal window of 7 days.
- Smart Contracts and Risks – Bugs in layer 2 protocols can cause fund loss.
- Centralization: Some rollups rely on centralized sequencing.
Always use an audited platform and stay up to date on protocol upgrades.
Tools for trading on Layer 2 Chains
For maximum trading on Layer 2, consider using these tools:
- Coinrule – Automate spot trades on exchanges.
- Zapper / DeBank – Monitor Layer 2 DeFi portfolios.
- Bridge aggregators.
- Wallets – MetaMask Wallets like Rabby and OKX Wallets are natively compatible with major Layer 2s.
Final Thoughts on Layer 2: They Are the Future Of Crypto Trading
In 2025, the layer 2 chain will no longer be a niche solution, it will become the standard. As more traders, protocol developers, and software developers migrate to these networks, they are redefining the crypto trading environment.
If you’re just starting or are a DeFi enthusiast and want to learn more, integrating Layer 2 into your trading strategy will be essential.
Want to trade Layer 2s with more intelligence?
Coinrule can automate your trades to explore more opportunities and find them faster.
Get started automating your trades with Coinrule.com now and get the most from Layer 2 crypto trading by 2025.
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