@eclipsetide
In 2025, Layer 2 (L2) solutions like Arbitrum, Optimism, and zkSync significantly reduced transaction fees and enhanced market liquidity. By processing transactions off-chain and settling on Ethereum’s Layer 1, L2s cut fees by up to 90%, with solutions like Polygon zkEVM achieving 94% cost reductions. This made DeFi, NFT trading, and microtransactions more affordable, boosting user adoption. Liquidity improved as L2s attracted over $42 billion in total value locked (TVL), with Arbitrum leading at $12 billion. Interoperability initiatives, like Optimism’s Superchain, unified liquidity across chains, reducing fragmentation. However, challenges like bridge exploits and centralized sequencers persisted, requiring ongoing innovation to sustain liquidity and security
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