The world of Layer2 scaling continues to evolve at a rapid pace, bringing transformative innovations that promise to reshape the future of decentralized applications and blockchain efficiency. Among the most anticipated developments is zkPorter — a novel scaling solution from Matter Labs that could elevate Ethereum’s transaction throughput to over 20,000 TPS. This week’s insights dive into key trends across Layer2 decentralized exchanges (DEXs), breakthroughs in zk-based rollups, major funding rounds, and high-impact community events shaping the ecosystem.
Top Layer2 DEXs by 24-Hour Trading Volume
As of April 20, CoinGecko data reveals the current leaders in Layer2 DEX trading volume. Quickswap leads the pack with $30 million in 24-hour volume, leveraging its optimized Polygon-based infrastructure to deliver fast and low-cost swaps. Following closely behind is **Loopring**, recording $17.17 million in daily volume — a testament to its robust zkRollup architecture and growing user trust. Rounding out the top three is ZKSwap, which achieved $15.92 million in trading activity, highlighting increasing demand for privacy-preserving and scalable swap solutions.
These figures underscore a clear trend: users are actively migrating to Layer2 platforms that offer reduced fees, faster confirmations, and improved scalability without sacrificing decentralization.
👉 Discover how next-gen trading platforms are redefining speed and efficiency.
zkPorter: A New Frontier in Ethereum Scalability
Matter Labs, the team behind zkSync, recently unveiled zkPorter in a detailed Medium post titled “zkPorter: A Breakthrough in L2 Scaling.” Scheduled for mainnet launch alongside zkSync 2.0 in June, zkPorter introduces a hybrid scaling model combining two complementary technologies:
- zkRollup: Ensures full data availability on-chain, offering maximum security.
- zkPorter: Moves data off-chain while maintaining cryptographic integrity via validity proofs.
This dual-layer design allows zkPorter to scale horizontally — supporting potentially millions of users with ultra-low fees — while still anchoring security to Ethereum’s mainnet. According to Matter Labs, this approach can push Ethereum’s effective throughput beyond 20,000 transactions per second (TPS), dramatically expanding its capacity for mass adoption.
However, not all experts agree on the necessity — or risk profile — of such high throughput. Ethereum co-founder Vitalik Buterin expressed reservations on Reddit, noting that off-chain data availability relies heavily on the honesty of zkSync’s stakers, creating a weaker security guarantee compared to pure on-chain rollups. He argued that 4,000 TPS may already be sufficient for most real-world use cases.
Despite initial skepticism, Vitalik and Matter Labs have since reached a mutual understanding: today’s off-chain data model is a pragmatic compromise. Once Ethereum’s sharded data layer becomes operational, zkPorter plans to migrate storage fully on-chain using these new data shards — preserving both scalability and security.
This forward-looking integration exemplifies how Layer2 solutions are being designed not just for today’s limitations, but for Ethereum’s long-term roadmap.
ETHGlobal Scaling Hackathon Ignites Innovation
The ETHGlobal “Scaling Ethereum” online hackathon officially kicked off this month, running until May 13. As one of the most influential developer events in the space, it brings together builders from around the globe to tackle core challenges in blockchain scalability.
Although held virtually due to ongoing logistical considerations, the event has sparked vibrant collaboration through live workshops and technical deep dives. Participants are exploring cutting-edge implementations of rollups, state channels, and novel consensus mechanisms — all aimed at making Ethereum more accessible and performant.
Projects emerging from this hackathon could lay the groundwork for the next generation of scalable dApps, bridging the gap between theoretical research and production-ready systems.
👉 Explore tools powering the next wave of Ethereum innovators.
dYdX Layer2 Surpasses $300 Million in Trading Volume
In a major milestone for DeFi derivatives, dYdX announced that its Layer2-powered platform — built on StarkWare’s validium technology — has surpassed $300 million in cumulative trading volume just ten days after mainnet launch.
Currently supporting five key perpetual contracts — including ETH-USD, BTC-USD, LINK-USD, UNI-USD, and AAVE-USD — dYdX offers up to 25x leverage, attracting active traders seeking high-performance trading environments with minimal slippage and near-instant execution.
With plans to introduce additional markets and enhance cross-margin functionality, dYdX is positioning itself as a leading force in decentralized derivatives trading. Its success demonstrates strong market appetite for scalable, secure, and user-friendly financial products built on Layer2 infrastructure.
O3 Swap Raises $2 Million in Strategic Funding
Cross-chain aggregation protocol O3 Swap has secured $2 million in funding from prominent investors including NGC Ventures and OKEx Blockdream Ventures. Developed by O3 Labs, the protocol enables seamless asset swaps across multiple blockchains — including Ethereum, Binance Smart Chain (BSC), Heco, Neo, and various Layer2 networks.
By aggregating liquidity from decentralized exchanges across chains, O3 Swap allows users to execute one-click cross-chain trades without relying on centralized intermediaries. This reduces friction for DeFi participants who want to move assets efficiently between ecosystems while maintaining control over their keys.
The investment signals growing confidence in cross-chain interoperability as a critical component of the multi-chain future.
👉 Learn how seamless asset transfers are unlocking new DeFi opportunities.
Frequently Asked Questions (FAQ)
What is zkPorter and how does it differ from zkRollup?
zkPorter is a hybrid scaling solution developed by Matter Labs that combines zkRollup (on-chain data availability) with off-chain data storage. While zkRollup stores all transaction data on Ethereum for maximum security, zkPorter stores data off-chain but uses zero-knowledge proofs to verify validity — enabling higher scalability at a slightly different trust assumption.
Why is 20,000 TPS important for Ethereum?
High throughput enables Ethereum to support mass-user applications like gaming, social media, and global payment systems. While current demand may not require 20,000 TPS today, achieving this scale prepares the network for future adoption and ensures smooth performance during peak usage.
Is off-chain data safe in zkPorter?
Off-chain data relies on staked validators to maintain availability. If they act maliciously or go offline, users can still exit the system through emergency mechanisms. Once Ethereum’s sharded data layer launches, zkPorter will transition to storing data on-chain for stronger guarantees.
How does dYdX achieve fast trading on Layer2?
dYdX uses StarkWare’s validium technology, which processes transactions off-chain but secures them with validity proofs submitted to Ethereum. This allows for rapid trade settlement while minimizing gas costs.
What makes O3 Swap different from other cross-chain bridges?
Unlike many bridges that lock assets on one chain and mint synthetic versions on another, O3 Swap aggregates liquidity across native DEXs on multiple chains. This reduces reliance on wrapped tokens and improves capital efficiency.
Can Layer2 solutions replace Ethereum’s base layer?
No — Layer2s are designed to complement Ethereum’s mainnet by handling computation and storage off-chain while relying on Ethereum for final settlement and security. They extend the network’s capabilities rather than replace it.
Core Keywords: Layer2 scaling, zkPorter, zkSync 2.0, Ethereum TPS, dYdX Layer2, O3 Swap, ETHGlobal hackathon, cross-chain aggregation