Layer 2 Tokens Are Outperforming But Can It Last?

Benzinga04:06

Something’s happening with Layer 2 networks that’s worth paying attention to. While Ethereum (CRYPTO: ETH) processes roughly 1.65 million transactions daily, Layer 2 platforms are now handling over 5 ...

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While Ethereum (CRYPTO: ETH) processes roughly 1.65 million transactions daily, Layer 2 platforms are now handling over 5 ...</p>\n\n<a href=\"https://www.benzinga.com/Opinion/25/12/49547657/layer-2-tokens-are-outperforming-but-can-it-last\">Source Link</a>\n\n</div>\n","source":"Benzinga","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Layer 2 Tokens Are Outperforming But Can It Last?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nLayer 2 Tokens Are Outperforming But Can It Last?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-12-23 04:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/Opinion/25/12/49547657/layer-2-tokens-are-outperforming-but-can-it-last><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Something’s happening with Layer 2 networks that’s worth paying attention to. While Ethereum (CRYPTO: ETH) processes roughly 1.65 million transactions daily, Layer 2 platforms are now handling over 5 ...</p>\n\n<a href=\"https://www.benzinga.com/Opinion/25/12/49547657/layer-2-tokens-are-outperforming-but-can-it-last\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"EZET","symbol_name":"以太坊ETF-Franklin","start_time":0,"source_url":"https://www.benzinga.com/Opinion/25/12/49547657/layer-2-tokens-are-outperforming-but-can-it-last","article_id":"2593695430","we_media_id":null,"thumbnails":[],"rights":{"source":"Benzinga","url":"https://www.benzinga.com/Opinion/25/12/49547657/layer-2-tokens-are-outperforming-but-can-it-last","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2593695430","pubTimestamp":1766433976,"columns":[],"sourceInfo":{"source_id":"Benzinga","name":"Benzinga Cypto"},"weMediaInfo":null,"summary":"Something’s happening with Layer 2 networks that’s worth paying attention to.","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"EZET":"以太坊ETF-Franklin","ARB":"AltShares Merger Arbitrage ETF","BK4595":"比特币概念","BK4551":"寇图资本持仓","BK4539":"次新股","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","QETH":"以太坊ETF-Invesco Galaxy","ETHV":"以太坊ETF-VanEck","BK4554":"元宇宙及AR概念","ETH":"低成本以太坊ETF-Grayscale","BK4585":"ETF&股票定投概念","CETH":"以太坊ETF-21Shares","BK4516":"特朗普概念","LU1861558580.USD":"日兴方舟颠覆性创新基金B","BK4535":"淡马锡持仓","LU1861217088.USD":"贝莱德金融科技A2","BK4596":"哈里斯概念","LU1861220207.SGD":"Blackrock FinTech A2 SGD-H","LU2360107671.USD":"BGF FINTECH \"A4\" (USD) INC","BK4588":"碎股","BK4600":"加密货币概念","BK4112":"金融交易所和数据","BK4601":"加密货币现货ETF","FETH":"以太币ETF-Fidelity"},"translate_title":"第2层代币表现出色，但能否持续？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CETH":0.68,"EZET":0.68,"ARB":1.92,"QETH":0.68,"FETH":0.68,"ETH":1.95,"ETHV":0.68},"content_text":"Something’s happening with Layer 2 networks that’s worth paying attention to. While Ethereum (CRYPTO: ETH) processes roughly 1.65 million transactions daily, Layer 2 platforms are now handling over 5 times that volume, with weekly active addresses reaching 10.18 million. This isn’t speculation. This is real migration happening in real time.But here’s where it gets interesting for investors. Strong usage doesn’t automatically translate to strong token performance. I’ve been tracking these networks closely, and the disconnect between infrastructure success and token value is becoming harder to ignore.What The Data Actually ShowsThe transaction numbers are straightforward. Layer 2 platforms now handle 5.19 times the transaction volume of Ethereum mainnet, with networks like Base, Arbitrum (CRYPTO: ARB), and Optimism (CRYPTO: OP) leading the charge. The combined Layer 2 ecosystem holds approximately $38 billion in total value locked as of December 2025.Arbitrum commands roughly 44% of the L2 market with approximately $16.7 billion in TVL. Base has emerged as a serious contender with 33% market share, holding around $12.5 billion. Optimism maintains about 6% with roughly $2.3 billion in TVL.Base’s growth has been something else to watch. The Coinbase Global Inc. (NASDAQ:COIN)-backed L2 has seen its developer community explode over the past year, with thousands of builders now actively working on the platform. That’s not marketing hype. That’s builders committing resources to create applications on the platform.The fee economics tell an equally compelling story. Transaction fees on Layer 2s average $0.08 compared to $3.78 on Ethereum mainnet. Users are voting with their wallets, choosing speed and affordability over paying premium fees on Layer 1.But let’s talk about the elephant in the room. Activity spikes don’t always mean what they seem.The Airdrop Problem Nobody Wants To DiscussSome Layer 2 networks saw their metrics crater after token distributions. Ronin (RON) experienced a 70% drop in active addresses post-airdrop. zkSync saw a 90% drop in transactions and nearly 80% decline in daily active addresses after its airdrop concluded.These weren’t small dips. These were cliff drops that exposed how much of their “usage” consisted of mercenary capital farming free tokens rather than committed users building or transacting on the networks.I watch the ratio of unique addresses to total transactions pretty obsessively now. It’s become one of my favorite filters for separating real growth from artificial activity. When transactions spike without corresponding increases in unique addresses, someone’s running bots. And that activity vanishes the moment incentives dry up.StarkNet has maintained high developer engagement, ranking fourth in the Ethereum ecosystem by developer count. Developer retention matters more than most people realize. Apps need builders. Builders need reasons to stay. Networks that lose developers while claiming user growth usually aren’t being honest about what’s actually happening.The Token Economics Nobody’s SolvingHere’s the uncomfortable reality about most L2 tokens: the business model works, but the token economics don’t.Most Layer 2 networks collect transaction fees in ETH, not their native tokens. So even when usage explodes and networks generate millions in revenue, token holders don’t directly capture that value. You’re essentially holding a governance token and hoping governance creates value somehow, someday.Base has been generating an average of $185,291 in daily revenue over the past six months, making it the most profitable rollup in the ecosystem. That significantly outpaces Arbitrum’s $55,025 daily average and the combined revenues of 14 other top Layer 2s. But here’s the catch: this revenue primarily flows through the network, not directly to token holders in most L2 models.Some projects are experimenting with solutions. Newer tokenomics models route portions of sequencer fees to stakers. That’s directionally correct. But the majority of L2 projects still rely on token inflation to fund growth, which means existing holders get diluted even as the network scales.The math on this is brutal. A network experiencing 15% annual token inflation needs its usage and revenue to grow significantly faster just to break even for token holders. Price appreciation gets eaten by supply expansion.The transition to decentralized sequencers represents a potential game changer. Right now, most rollups run centralized sequencers for speed and simplicity. When they eventually move to decentralized sequencer networks, token holders could start earning real revenue from transaction ordering and MEV extraction. That’s when governance tokens might actually start capturing the value these networks create.But “when” keeps slipping. Projects promise decentralization roadmaps, then quietly push timelines. After watching this pattern repeat, I’ve gotten skeptical about whether some teams are genuinely committed to distributing value or just saying what token holders want to hear.What Actually Matters For InvestorsIf you’re evaluating L2 tokens, here’s what I focus on.Transaction consistency matters more than peaks. Networks showing steady growth in both transaction volume and unique daily addresses demonstrate healthier fundamentals than those with volatile spikes followed by dramatic declines. Cross-chain activity metrics declined 19.81% earlier this year, suggesting some capital rotation may be exhausting itself rather than expanding.TVL composition reveals everything. I don’t just look at total value locked anymore. I examine what comprises that value. Stablecoins and bridged ETH indicate productive economic activity. Heavy concentration in native governance tokens or sketchy yield farms suggests less sustainable foundations. Networks where stablecoins and bridged tokens exceed 45% of TVL generally show healthier fundamentals.Fee generation and margins separate winners from pretenders. Can the network cover its settlement costs and generate profit? Platforms maintaining 10 to 100 times fee reduction relative to Ethereum while generating positive margins demonstrate sustainable models. Base’s daily revenue averaging $185,291 over six months demonstrates real business economics, not subsidized growth.Developer retention predicts future success. GitHub commits, hackathon participation, grant program uptake. These metrics translate into diverse applications, which expand user bases and revenue streams. Networks losing developers while claiming user growth usually precede ecosystem stagnation. I’ve seen this pattern enough times to trust it.Token unlock schedules matter more than people think. High inflation rates exceeding 10 to 15% annually create significant headwinds. Calculate inflation-adjusted returns by subtracting annual emission rates from price appreciation. The real return often looks very different from the headline number.Decentralization progress separates serious projects from vaporware. Networks still operating single centralized sequencers after multiple years raise questions about commitment. Track specific milestones and technical progress, not just promises.The Risks That Could Reverse EverythingEthereum mainnet improvements could squeeze L2 margins. The Pectra upgrade, scheduled for early 2026, will raise blob capacity from 3 to 6 blobs per block, potentially reducing settlement costs further. While beneficial for users, this compresses L2 economics if fee reductions outpace usage growth.Competition is intensifying across over 30 active Layer 2 projects fighting for the same users and liquidity. Markets consolidate. They always do. Networks outside the top five by TVL face existential risks as network effects compound for market leaders. The recent TVL figures show this consolidation already happening, with Arbitrum and Base capturing 77% of the L2 market between them.Regulatory uncertainty hangs over token classification. If regulators determine Layer 2 governance tokens constitute securities, compliance costs and trading restrictions could crater valuations. The lack of clear value accrual mechanisms in many token models strengthens securities classification arguments.Technical risks persist despite security improvements. Bridge exploits continue occurring. Smart contract vulnerabilities in Layer 2 implementations could trigger catastrophic losses. The complexity of rollup architectures creates ongoing challenges even for well-audited networks.Airdrop exhaustion represents a near-term headwind. As remaining large Layer 2 projects complete token distributions, temporary demand spikes may reverse, exposing true organic user bases versus incentive-chasing mercenary capital.My Investment FrameworkI’m selective about L2 exposure, but I’m not completely out.I prioritize networks demonstrating revenue generation exceeding settlement costs. Platforms capturing genuine value from users offer superior prospects compared to those burning treasury funds for artificial activity. Projects lacking positive unit economics face uncertain futures.Token utility beyond governance matters. Fee sharing mechanisms, staking yields, or direct value capture offer better risk-adjusted returns than pure governance tokens. The transition timeline toward decentralized sequencers matters significantly since this shift enables direct revenue distribution.Competitive positioning requires honest assessment. Arbitrum’s 44% market dominance and Base’s 33% represent positions difficult for new entrants to overcome. Smaller networks need compelling differentiation beyond marginally lower fees or slightly faster transactions.Ecosystem development beyond DeFi speculation provides sustainability. Gaming, social applications, and real-world asset tokenization represent growth vectors less dependent on yield farming cycles that inevitably fade. Base’s integration with Coinbase’s user base demonstrates strategic positioning toward consumer applications.Remember that Layer 2 tokens represent leveraged Ethereum exposure. If ETH struggles, L2 networks face amplified headwinds. Conversely, Ethereum strength multiplies through Layer 2 ecosystems as users migrate from expensive mainnet transactions.The Bottom LineLayer 2 infrastructure is winning. Usage is real. Developers are building. Transaction volumes are growing. The technology works.But token success lags infrastructure success because current tokenomics inadequately capture the value these networks create. Until decentralized sequencers distribute revenue to token holders, governance tokens represent indirect rather than direct claims on growing economic activity.The most promising opportunities combine proven usage metrics, credible paths toward decentralized sequencers, and tokenomics beginning to incorporate actual value accrual. That’s a short list right now. Arbitrum and Base best fit this profile given their market dominance and revenue generation, though their token economics still need improvement.Can L2 tokens keep outperforming? Yes, if networks maintain usage growth and implement better value capture mechanisms. But don’t confuse infrastructure success with token success. Those aren’t always the same thing.For now, I’m staying exposed but selective. The momentum’s real. The technology’s proven. Whether the tokens ultimately capture the value being created remains the open question we’re all trying to answer.Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.$ARBArbitrum$0.18700.54%Overview$ETHEthereum$2981.43-0.67%$OPOptimism$0.2710-%COINCoinbase Global Inc$249.601.83%Market News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. Benzinga does not provide investment advice. 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