Layer 2s are changing direction this cycle. Last cycle, most L2s followed the same strategy: Lower fees, attract DeFi apps, offer incentives and compete for TVL. That model is no longer enough. Cheap blockspace has become common, and users rarely care about the underlying stack. This cycle, I think the winners are building around three advantages: – Existing distribution – A specific financial use case – Infra designed for that use case Only 5 Ethereum L2s currently secure more than $1B: [1] @base: $15.98B [2] @arbitrum - $ARB: $11.58B [3] @Optimism - $OP: $1.89B [4] @Mantle_Official - $MNT: $1.50B [5] @Lighter_xyz - $LIT: $1.47B But each one is reaching scale through a different method. [1] Base: consumer distribution Base has the strongest direct distribution through Coinbase. Expanding from a general L2 into a complete onchain financial platform covering tokenized assets, stablecoin payments, trading and AI agents. The Base App can connect users, assets and applications in one interface. Coinbase also provides fiat access, liquidity and trust that most chains cannot build independently. [2] Arbitrum: financial infra and custom chains Arbitrum’s strongest method is combining deep DeFi liquidity on Arbitrum One with app-specific Orbit chains. I have followed @RobinhoodCrypto closely, and I think it is the clearest catalyst for this model. Robinhood brings its own users, tokenized stocks, RWA trading and perpetual markets. Arbitrum provides the infra needed to move those products onchain. RH does not directly add its value to Arbitrum One’s TVS because it is a separate Orbit chain. However, it strengthens the wider Arbitrum eco and proves that major financial platforms can launch dedicated chains using its tech. [3] Optimism: infra for a network of chains OP Mainnet alone is not the full Optimism thesis anymore. Optimism’s strongest method is the Superchain: multiple OP Stack chains sharing standards, governance and eventually native interoperability. Base, @unichain, @inkonchain and other OP chains expand the network even when activity does not happen directly on OP Mainnet. The current catalyst is native Superchain interoperability. Upgrade 20 introduces the dispute-game structure required to represent the state of multiple chains. Optimism is also working with @SuccinctLabs toward ZK validity proofs and faster withdrawals. [4] Mantle: treasury-backed institutional liquidity Mantle is taking a more capital-driven approach. Its advantages are its large treasury, Bybit distribution and focus on institutional assets, structured yield and RWAs. Instead of competing for every type of application, Mantle is positioning itself as infra connecting exchange liquidity with onchain capital markets. The current catalysts are tokenized equities, regulated stablecoins such as USDG and deeper integration with Bybit. I think Mantle works best when its treasury and exchange relationships are used to seed sustainable financial products. [5] Lighter: application-specific execution Lighter represents the clearest change in L2 design. It is an app-specific ZK rollup optimized for perpetual trading. Its strongest method is vertical specialization: low latency, zero trading fees and cryptographically verifiable order matching and liquidations. Reaching the top five shows that one high-demand application can secure more value than many general-purpose chains. Overall, I see the L2 market is moving from “build cheaper Ethereum” toward “own distribution or dominate one financial vertical.” Capital is concentrating around the few networks with a clear reason for users and liquidity to stay. But I believe it’s the beginning of a new era for these L2 infra.