Ethereum (ETH): how L2 adoption is shifting activity away from mainnet this year

Explore how Layer 2 scaling on Ethereum is diverting transactions from mainnet in 2025, its impact on users and RWA platforms like Eden RWA.

• Layer 2 networks are pulling a growing share of Ethereum traffic away from the congested mainnet.
• The shift reshapes transaction costs, user experience, and real‑world asset (RWA) tokenization strategies.
• Investors can benefit by understanding where activity is moving and how platforms such as Eden RWA capitalize on it.

For months now, Ethereum’s mainnet has been a hotbed of congestion, with high gas fees driving users to seek alternatives. Layer 2 (L2) solutions—rollups, sidechains, and state channels—have emerged as the most effective way to increase throughput while keeping the security guarantees of Ethereum.

In 2025, L2 adoption is accelerating at a pace that threatens to alter how developers, traders, and institutional investors interact with the blockchain. The question is not whether L2 will replace mainnet, but how the migration will affect transaction volume, asset tokenization, and ultimately the ecosystem’s health.

This article examines the mechanics behind L2 scaling, its market impact, regulatory risks, and what it means for retail investors who are looking to participate in real‑world assets on Ethereum. We’ll also spotlight Eden RWA as a practical example of how an RWA platform can thrive in this new environment.

Background: Layer 2 Scaling and the 2025 Momentum

Layer 2 solutions are secondary frameworks built atop Ethereum’s base layer, designed to process transactions off‑chain or in parallel while anchoring final states back to mainnet. The most common models include Optimistic Rollups (e.g., Arbitrum, Optimism), zk‑Rollups (e.g., StarkWare, zkSync), and sidechains like Polygon.

Since the 2024 surge of DeFi activity, L2 networks have seen a compound annual growth rate (CAGR) in transaction volume exceeding 120%. In Q1 2025 alone, Optimism recorded a 45% increase in daily active users, while zkSync’s user base grew by more than 60% compared to the same period last year.

Regulatory attention has also increased. The European Union’s Markets in Crypto‑Assets (MiCA) framework now includes provisions that can affect L2 operators, especially those handling custodial services or token issuance. In the U.S., the SEC is scrutinizing tokenized securities issued on rollups for compliance with traditional securities law.

Key players driving this shift include Ethereum Foundation’s EIP‑4337 (account abstraction), Coinbase’s rollup launch, and a growing number of institutional investors looking to lower operational costs through L2 integration.

How Layer 2 Adoption Works

• Transaction Flow: Users submit transactions to an L2 network, where they are bundled into a single “rollup” block. The rollup’s state root is then posted to Ethereum mainnet as a succinct proof.
• Security Model: Optimistic Rollups assume honesty but allow fraud proofs; zk‑Rollups use zero‑knowledge proofs for instant finality and stronger security guarantees.
• Cost Structure: Gas fees on L2s are typically 10–20% of mainnet costs, as the heavy computation is done off-chain. Users still pay a small base fee on Ethereum to finalize the rollup.
• Interoperability: Bridges (e.g., Hop Protocol, Connext) enable asset transfers between L2s and mainnet, ensuring liquidity and composability across ecosystems.

Market Impact & Use Cases for Real‑World Assets

The migration of activity to Layer 2 has several tangible effects on the tokenization of real‑world assets (RWA):

Tokenized real estate, bonds, and infrastructure projects increasingly issue their ERC‑20 or ERC‑1155 tokens on rollups to reduce friction. For instance, a tokenized commercial property in Singapore might use zkSync to allow fractional ownership with instant transfers and minimal gas.

DeFi protocols are also leveraging L2s: liquidity pools now accept rollup assets, yield farming strategies incorporate low‑fee swaps, and cross‑chain bridges enable capital flows without mainnet bottlenecks. Retail investors benefit from reduced entry barriers and more frequent trading opportunities.

Risks, Regulation & Challenges

Regulatory Uncertainty: L2 platforms that facilitate token issuance may fall under securities regulations if the tokens are considered investment contracts. The SEC’s enforcement actions in 2024 targeted rollup projects issuing “security‑like” assets without proper registration.

Smart Contract Risk: Bugs or vulnerabilities in rollup code can lead to asset loss. While mainnet smart contracts are audited, many L2 solutions are still under active development with limited audit history.

Custody & Liquidity: Bridges can become chokepoints; a delay or failure in transferring assets back to mainnet may trap funds. Additionally, secondary markets for rollup tokens are less mature than on‑chain exchanges.

Tokenized property owners must ensure that legal title remains clear and compliant with local laws. Some jurisdictions require real‑name verification for each token holder, complicating privacy.

These challenges underscore the need for due diligence before participating in L2‑based RWA offerings.

Outlook & Scenarios for 2025+

• Bullish Scenario: Mainnet congestion eases as L2 adoption stabilizes, leading to a healthy hybrid ecosystem. Tokenized assets thrive on rollups with high liquidity and low cost, attracting both retail and institutional capital.
• Bearish Scenario: Regulatory crackdowns tighten restrictions on cross‑chain bridges and token issuance, stalling growth. Technical failures in major rollup networks erode user confidence.
• Base Case (12–24 months): Gradual shift of high‑volume transactions to L2, while core infrastructure for mainnet remains robust. RWA platforms adapt by integrating L2 bridges and offering dual‑chain token options.

For individual investors, the key takeaway is that L2 activity will likely dominate routine transactions, but staying informed about regulatory developments and platform security is essential.

Eden RWA: Tokenizing French Caribbean Luxury Real Estate on Ethereum L2

Eden RWA exemplifies how a real‑world asset platform can harness Ethereum’s Layer 2 ecosystem to democratize access to high‑end property investment. The platform issues ERC‑20 tokens that represent fractional ownership in a Special Purpose Vehicle (SPV) – either an SCI or SAS – owning a luxury villa in Saint‑Barthélemy, Saint‑Martin, Guadeloupe, or Martinique.

Key features:

• Fully Digital & Transparent: Each token is backed by audited smart contracts that automatically distribute rental income paid in USDC to holders’ Ethereum wallets.
• L2 Efficiency: Transactions occur on a zk‑Rollup, ensuring near‑instant transfers and negligible gas costs, making micro‑investments viable.
• Quarterly, a bailiff‑certified draw selects one token holder for a free week in the villa they partially own, creating tangible value beyond passive income.
• Token holders vote on key decisions such as renovations or sale timing, striking a balance between community oversight and operational efficiency.
• A platform utility token ($EDEN) powers incentives and governance, while property‑specific ERC‑20 tokens (e.g., STB‑VILLA‑01) represent the actual asset stake.

Eden RWA’s architecture illustrates how L2 scaling can unlock liquidity for traditionally illiquid assets, enabling retail investors to participate in premium real estate without large upfront capital or custodial intermediaries.

Curious about exploring tokenized Caribbean luxury real estate? You can learn more and join the presale here: Eden RWA Presale or through our dedicated link: Presale Portal. This information is purely educational; it does not constitute investment advice.

Practical Takeaways for Retail Investors

• Track L2 transaction volume growth to gauge where activity is migrating.
• Verify that token issuers conduct regular smart‑contract audits and maintain transparent legal documentation.
• Assess the bridge architecture; ensure it’s supported by reputable protocols with proven security track records.
• Consider gas fee patterns when planning frequent trades or staking on rollups.
• Understand how regulatory developments (MiCA, SEC) could affect tokenized asset compliance.
• Check for liquidity provisions: secondary markets, exchange listings, and cross‑chain swap options.
• Review governance structures to ensure investor rights align with your risk tolerance.

Mini FAQ

What is the difference between Optimistic Rollups and zk‑Rollups?

Optimistic Rollups assume transactions are valid but allow fraud proofs if disputes arise, offering lower upfront costs. zk‑Rollups use zero‑knowledge proofs to verify state changes instantly, providing faster finality but typically higher computational overhead.

Can I move my tokenized property back to Ethereum mainnet?

Yes, most L2 solutions support cross‑chain bridges that let you transfer tokens from the rollup back to mainnet. However, each bridge has its own fee structure and withdrawal times.

Is there a risk of losing my investment if an L2 network fails?

If an L2 network experiences downtime or is shut down, assets locked on that chain may be temporarily inaccessible. Properly audited contracts and diversified holdings across multiple L2s can mitigate this risk.

Does using an L2 platform affect my tax reporting?

L2 transactions are still recorded on Ethereum’s immutable ledger, so you should keep detailed records of all transfers for tax purposes. Consult a qualified tax professional for specific guidance.

What is the role of the $EDEN utility token?

$EDEN powers platform incentives, such as staking rewards or fee discounts, and provides governance rights to holders in decisions affecting the Eden ecosystem.

Conclusion

The rapid expansion of Layer 2 networks in 2025 is reshaping how Ethereum users transact, tokenize assets, and interact with real‑world property. While mainnet remains essential for foundational security, L2s offer the speed, cost efficiency, and composability needed to bring fractional ownership of high‑value assets like luxury Caribbean villas into the hands of a broader investor base.

Retail investors should monitor L2 adoption trends, evaluate platform security and regulatory compliance, and consider how L2 infrastructure aligns with their investment strategy. Platforms such as Eden RWA demonstrate that Layer 2 scalability can unlock new opportunities for tokenized real‑world assets, provided users remain vigilant about the associated risks.

Disclaimer

This article is for informational purposes only and does not constitute investment, legal, or tax advice. Always do your own research before making financial decisions.