The Layer 2 sector is experiencing rapid innovation, with solutions like Arbitrum, Optimism, zkSync, and StarkNet competing to scale Ethereum. While optimistic rollups prioritize ease of adoption, zero-knowledge (ZK) rollups provide superior security and efficiency.

Arbitrum and Optimism currently dominate in terms of adoption, while zkSync and StarkNet represent the next wave of ZK-powered scalability. The long-term winner will likely be the solution that best balances security, decentralization, cost efficiency, and developer support.

Interoperability and composability will also play a crucial role. If a Layer 2 solution can seamlessly integrate with other chains and establish a dominant ecosystem, it may emerge as the leading scalability solution.