Base is establishing itself as the frontrunner in daily fee generation among Layer 2 (L2) blockchain networks. Currently, only three L2 chains are producing significant daily fees derived from app-based economic activity.
Base has ascended to the top position among L2 chains with the highest daily fees, fostering the most active application economy and generating a total of $147,000 in daily revenues. The chain's fees are also substantial, hovering around $145,000 per day, which reflects considerable on-chain activity. Base currently hosts nearly 550,000 daily active addresses, primarily engaged in Decentralized Exchange (DEX) trading, token activities, and perpetual futures trading.
Generally, L2 chains have fallen short of their initial promises to host a broad application ecosystem. The majority of existing L2 networks generate less than $5,000 in daily fees. Consequently, Base accounts for approximately 70% of the app-based revenue within the EVM-compatible L2 ecosystem.
According to data from Cryptorank, only Base, Arbitrum, and Starknet are producing robust daily fees. Arbitrum, once the leading L2 network, is now experiencing slower activity and producing only $39,000 in daily fees. Polygon is also among the active chains in terms of revenue, notably due to the rise of Polymarket.
While L2s were envisioned as competitors to Ethereum, the Layer 1 (L1) network itself draws in close to $500,000 in daily fees from its smart contract activity. Base and Arbitrum are positioned within the top 10 fee-producing chains, while Starknet ranks 11th. Most L2 networks are conspicuously absent from the upper echelons of the fee-generating chart.
L2 Share of App Revenues is Falling
L2 chains currently contribute around 15.9% of the total app revenues within the Ethereum ecosystem. Revenues reached their peak on October 10 and subsequently slowed down, mirroring broader market trends. Both Ethereum and L2 revenues experienced a decline concurrently, despite 2025 being one of the most successful years for the Ethereum ecosystem in terms of application activity and adoption.
Base continues to lead in most categories, particularly in the finance sector. Base hosts over 2 billion smart contracts for decentralized finance (DeFi), compared to approximately 589,000 for Arbitrum. Base excels in token transfers and general utility, and it only trails behind Taiko in terms of on-chain social media applications.
However, Arbitrum One and Arbitrum Nova register a higher volume of financial transactions on their DeFi applications. Ethereum maintains its position as the leader, directly handling a significant portion of DeFi traffic.
The current balance between L2 and L1 indicates that the sidechains have not siphoned liquidity away from Ethereum. L2s are benefiting from historically low fees for posting data on the L1 chain, yet they are not diverting user traffic from Ethereum's native applications.
L2 Chain Creation Slows Down
In total, approximately 150 L2 chains are currently vying for attention. At one point during the crypto cycle, numerous projects launched their own L2 chains due to perceived ease of development.
Of these chains, a significant number are still considered largely centralized. Around 99 of the remaining networks are deemed live, with several shutting down each month due to insufficient demand. The L2 ecosystem has undergone significant evolution over the past year, with applications consolidating onto a select few task-specific networks, leaving the rest with minimal liquidity and user bases. Even previously active chains have been largely abandoned following the conclusion of airdrop farming seasons.