# Ethereum Layer 2 Solutions Locked in Fierce Competition
The market for Ethereum’s scalability solutions, known as Layer 2 (L2) projects, has entered a heated competitive phase. Prominent L2 initiatives like Arbitrum, Base, Optimism, Mantle, and Blast are each employing strategic methods to fortify their market positions.
Notably, Base has been demonstrating rapid growth in Total Value Locked (TVL) and DEX trading volumes, positioning itself as an industry front-runner. Simultaneously, Optimism is focusing on network expansion with its ambitious “Superchain” strategy, while Mantle is leveraging its financial resources and staking ecosystem for growth. Blast is employing an incentive model to capture early liquidity as it enters the market.
## Differentiated Strategies of L2 Projects
### Base: Rapid Growth and User Acquisition
Developed by Coinbase, Base leverages a centralized operational structure and smooth user onboarding to quickly integrate existing Coinbase users into the L2 ecosystem. This approach has rapidly expanded its market share. Recently, Base recorded a TVL of $3.6 billion, making it the fastest-growing L2. Key protocols like Aerodrome ($AERO) and Morpho Blue ($MORPHO) have been pivotal to this growth. Additionally, Base is actively adapting to AI and new trends to sustain its network expansion.
### Optimism: Ecosystem Expansion via Superchain Strategy
Initially operated as an independent L2, Optimism has shifted its strategy to focus on the Superchain concept, which aims to integrate multiple L2 networks into a single, extensive ecosystem. The Superchain includes networks with notable participants like Kraken and Mode, expanding beyond Optimism’s own L2. Although Optimism’s standalone TVL is relatively low at $65.6 million, the overall liquidity and transaction volume within the Superchain remain substantial.
### Mantle: Growth Powered by Financial Capital and Staking
Mantle may have initially launched without much fanfare, but it has recently gained traction through its liquidity staking token (LST), mETH. Mantle’s TVL soared to $1.46 billion, buoyed primarily by mETH’s performance. Leveraging significant project funding, Mantle runs continuous incentive programs to drive ecosystem growth effectively.
### Blast: Capturing Liquidity Through Incentive Models
From its inception, Blast has aimed to secure TVL by offering returns based on Ethereum staking revenue. Although the initial high yields attracted considerable liquidity, post-token release, Blast experienced a decline as users exited en masse. Currently, Blast holds a TVL of $322 million, a significant drop from its peak. Nevertheless, through strategies like new mobile app development and offering over 50% on-chain yields, Blast seeks to reignite user interest.
### Arbitrum: Dominance in Tech and DeFi Focus
Arbitrum stands out with its fast block generation, low fees, and support for diverse programming languages, maintaining a strong tech stack. It holds significant presence in the DeFi sector, with $5 billion in stablecoin supply, sustaining the most robust stablecoin ecosystem among L2s. Despite being surpassed by Base in TVL and DEX trading volumes, Arbitrum continues to seek new growth avenues.
## Key Metrics in L2 Market Competition
### Total Value Locked (TVL)
– Base: $3.6 billion
– Arbitrum: $2.9 billion
– Optimism: $65.6 million
– Mantle: $44.5 million
– Blast: $32.2 million
Base and Arbitrum lead in TVL, with Mantle showing steady growth. Optimism focuses on Superchain expansion over individual TVL.
### Daily Active Addresses (DAA)
– Base: 1,300,000
– Arbitrum: 428,000
– Optimism: 89,100
– Mantle: 37,900
– Blast: 27,600
Base reports the highest number of active addresses, though many pertain to small transactions.
### Stablecoin Supply
– Arbitrum: $5 billion
– Base: $3.7 billion
– Mantle: $397 million
– Blast: $99.6 million
Arbitrum maintains the lead in stablecoin supply, a key metric for institutional and large-scale investors.
### DEX Trading Volume
– Base: $8 billion
– Arbitrum: $4 billion
Since September 2024, Base overtook Arbitrum in DEX trading volumes, attributed to the successful adoption of new DeFi protocols like Aerodrome.
## Future Direction of L2 Competition
The Layer 2 market is dynamically evolving, with each project enhancing its competitive edge through differentiated strategies. Base grows rapidly with high user engagement and transaction volumes, while Optimism pushes for entire network growth via the Superchain strategy. Mantle continues expanding its TVL with its LST model, and Blast seeks to revamp its ecosystem with new reward systems. Arbitrum maintains a strong DeFi presence, looking for new growth opportunities.
As the competition in L2 markets intensifies, the focus will be on how each network secures its market leads through strategic innovation and user engagement.