Ethereum Layer 2 Evolution: Arbitrum’s Dominance and Optimism’s Niche Strategy

As of October 2025, the Ethereum Layer 2 ecosystem continues to demonstrate remarkable growth and strategic differentiation. Arbitrum maintains its commanding position with a Total Value Locked (TVL) of $3.85 billion, significantly outpacing Optimism's $338.99 million. This substantial disparity highlights Arbitrum's successful appeal to major decentralized exchanges and sophisticated liquidity providers, where its ecosystem supports thriving stablecoin pools and advanced derivatives protocols. The network has become the preferred platform for high-volume DeFi applications seeking scalable Ethereum solutions. Meanwhile, Optimism has strategically focused on cultivating native liquidity and developing a unique ecosystem identity. Rather than competing directly for the same market segments, Optimism has carved out a distinctive niche by emphasizing projects built natively on its platform. This approach has fostered organic growth and community-driven development, creating a foundation for sustainable expansion. The network's emphasis on native project development suggests a long-term vision that prioritizes ecosystem quality over rapid metric inflation. The current Layer 2 landscape reveals a maturing market where different scaling solutions are finding their optimal positioning within the broader Ethereum ecosystem. Arbitrum's dominance in traditional DeFi metrics contrasts with Optimism's targeted approach, creating complementary rather than purely competitive dynamics. This diversification benefits the entire Ethereum network by providing users and developers with multiple optimized pathways for different use cases and requirements, ultimately strengthening Ethereum's position as the leading smart contract platform.

Arbitrum vs Optimism: Liquidity and Activity Trends in Layer 2 Networks

Arbitrum continues to dominate the LAYER 2 landscape with a total value locked (TVL) of $3.85 billion, dwarfing Optimism's $338.99 million. The disparity underscores Arbitrum's appeal to major decentralized exchanges and liquidity providers, where stablecoin pools and derivatives protocols thrive.

Optimism, while smaller, is carving a niche with native liquidity—more of its value stems from projects built directly on its network rather than bridged assets from Ethereum. This shift signals growing ecosystem maturity.

User activity tilts decisively toward Arbitrum, which processes over 2.6 million daily transactions and sustains hundreds of thousands of active wallets. Both networks have benefited from Ethereum's EIP-4844 upgrade, slashing transaction fees by 90% and boosting accessibility for traders and developers alike.

Fasset Appoints Mehtap Onder as Managing Director to Drive Digital Asset Adoption in Asia and Africa

Fasset, a global banking and investment platform, has named Mehtap Onder as Managing Director to spearhead institutional adoption of digital assets across Asia and Africa. The MOVE follows Fasset's recent digital banking license approval, marking a strategic push into emerging markets.

Onder brings over a decade of experience bridging traditional finance with digital assets. Her prior role at GCEX Dubai saw her secure the first broker-dealer license from Dubai's VIRTUAL Assets Regulatory Authority (VARA) and establish the region's first client-money account for a Virtual Asset Service Provider.

At Fasset, Onder will lead regulatory strategy, compliance, and institutional growth initiatives. A key focus will be launching Own, Fasset's ethereum Layer 2 network designed for real-world asset tokenization. The platform aims to expand compliant, asset-backed finance opportunities for both institutions and retail investors.

Tom Lee’s Bullish Ethereum Forecast: $10,000 ETH by December 2025

Fundstrat co-founder and Bitmine president Tom Lee projects Ethereum could surge to $10,000 by December 2025, with long-term potential reaching $60,000. The forecast comes amid institutional accumulation, with Bitmine's recent 63,500 ETH purchase ($184 million) bringing its holdings to 3.34 million ETH—2.7% of circulating supply.

Tokenization of real-world assets is driving Ethereum's growth narrative, unlocking trillion-dollar market opportunities. Fractionalized asset transactions are already boosting network activity, though broader market sentiment remains cautious. Lee's outlook contrasts with current bearishness, positioning ETH as a cornerstone of Bitmine's institutional strategy since June 2025.

ETHZilla Partners with Liquidity.io in $15M Deal to Advance RWA Tokenization

ETHZilla Corporation (Nasdaq: ETHZ) shares gained 0.83% to close at $15.77 after announcing a strategic $15 million partnership with Liquidity.io. The deal includes $5 million in cash and a $10 million equity stake in Satschel, Inc., positioning ETHZilla at the forefront of compliant real-world asset tokenization.

The collaboration grants ETHZilla exclusive rights to list Ethereum Layer 2 tokens on Liquidity.io's SEC-regulated Alternative Trading System. This infrastructure accelerates ETHZ's strategy to bridge traditional finance with blockchain-native solutions through a compliant digital asset framework.