Catenaa, Wednesday, December 31, 2025-Ethereum layer 2 networks saw uneven growth in 2025, with liquidity and users concentrating on a small number of dominant chains, led by Coinbase-backed Base, according to industry data.
Total value locked across layer 2s rose during the year, but most gains accrued to Base, which grew from about $3.1 billion in January to more than $5.6 billion in October.
Base accounted for roughly 47% of all layer 2 DeFi TVL, driven by steady user activity and integration into Coinbase’s consumer platforms.
Arbitrum remained the second-largest network, with TVL edging down slightly to about $2.8 billion, or nearly 31% of the sector total. OP Mainnet expanded its network of Superchain partners but lagged in retail usage as activity shifted toward Base.
User metrics showed a similar pattern. Base captured close to half of layer 2 decentralized exchange volume throughout the year, supported by consumer-focused applications and onchain lending growth tied to Morpho’s integration in the Coinbase app. Other networks experienced short-lived spikes tied to incentives and token launches, followed by sharp declines.
Institutional adoption accelerated in 2025, with firms such as Kraken, Uniswap and Sony launching rollups built on existing stacks rather than custom infrastructure. Many chose the OP Stack, reinforcing a trend toward shared tooling and distribution through large platforms.
Despite growth, most layer 2s remained highly centralized.
Bitcoin-focused layer 2 activity declined sharply, while interest returned late in the year to select zero-knowledge rollups with new cryptographic features.
Looking ahead to 2026, analysts expect competition to intensify as liquidity clusters around a few large networks and performance-focused projects test whether higher throughput can attract sustained usage.
