A noticeable trend has emerged where Layer2 perpetual exchange projects such as Lighter and GRVT are aggressively showcasing their capabilities, positioning themselves to compete with market leaders like Hyperliquid. However, this development appears to be a case of delayed market entry, as the anticipated dominance of perpetual DEX platforms should have naturally favored Layer2 solutions, yet alternative Layer-1 platforms like $ASTER have gained significant traction. The core challenges facing Layer2 perpetual exchanges are multifaceted. Primary Layer2 networks including Arbitrum and Optimism prioritize general-purpose Rollup architectures, which inherently limits their transaction processing speeds and block finality times. The complexities of transaction finalization, state synchronization, and computational overhead prevent these platforms from delivering the sub-second trading experiences comparable to centralized exchanges that Hyperliquid provides. Specialization appears to be the crucial differentiator. Projects like Lighter have strategically abandoned the pursuit of universal functionality, instead implementing dedicated optimizations at both the ZK-circuit and order-book matching levels. This specialized approach has enabled transaction volumes competitive with industry leaders. Additionally, many Layer2 perpetual platforms continue to rely on Automated Market Maker (AMM) models or hybrid order-book designs. The experience of GMX, previously a leading Layer2 perpetual protocol, demonstrates the inherent limitations of AMM-based systems. Issues including impermanent loss, MEV vulnerabilities, and slippage problems create barriers for institutional capital and high-frequency trading—challenges largely absent in Hyperliquid’s full-chain Central Limit Order Book (CLOB) combined with HLP model. The traditional DeFi mining incentives prevalent in Layer2 ecosystems have diminished in effectiveness. Emerging perpetual trading platforms like Hyperliquid offer diversified engagement models incorporating meme culture elements, point-based airdrops, and token buyback mechanisms, providing enhanced user experiences and engagement expectations. Furthermore, Layer2 ecosystems suffer from fragmented liquidity distribution. The competitive incentive structures across platforms increase user cross-chain bridging costs and primarily benefit third-party bridging services rather than enhancing protocol-specific user retention. Despite these challenges, the Layer2 perpetual DEX landscape remains active with numerous projects including SynFutures, Orderly Network, and Paradex continuing development. Recent developments such as GRVT’s $19 million funding round indicate sustained investment in Layer2 perpetual trading solutions. The Ethereum ecosystem maintains a significant advantage with substantial stablecoin reserves and DeFi Total Value Locked unmatched by alternative Layer-1 networks.
