To dive deeper, check out the complete article from original source:
https://droomdroom.com/layer-2-bridges-and-scaling-solutions-revenue/
🔗 Layer-2 solutions on Ethereum, like Polygon, Arbitrum, Optimism, and Base, bundle multiple transactions into one, significantly lowering transaction costs through a process called the Merkle tree.
By reducing fees to just a few cents, they offer users cheaper alternatives to Ethereum’s high gas fees. Despite these low fees, Layer-2 chains generate substantial revenue by processing massive transaction volumes.
⚡️ For example, Polygon handles 65,000 transactions per second, processing around 3 million transactions daily, yielding 30,000 POL in revenue. Arbitrum averages 1.5 million daily transactions, while Optimism processes 0.75 million transactions each day.
📊 The secret to their success lies in scaling — these networks prioritize speed and transaction volume over decentralization. This allows them to manage large numbers of transactions efficiently, which compensates for the lower individual transaction fees.
🌍 While Ethereum processes around 10–15 transactions per second with high validator involvement, Layer-2 chains like Polygon, Arbitrum, and Optimism have fewer validators, enabling faster processing.
💰 Even though Layer-2 chains charge significantly less than Ethereum, the sheer volume of transactions — often from DApps, DeFi protocols, and frequent small transactions — makes these networks profitable. Base, backed by Coinbase, processes 5 million daily transactions, generating around $200 million in annual revenue.
🌐 Despite charging only pennies per transaction, the high volume ensures sustainability and growth for these Layer-2 solutions.
