Gate Layer Network Launch Transforms GT Token Into Web3 Ecosystem Fuel
Gate.io has launched Gate Layer, a new Layer 2 blockchain built on OP Stack technology and fully compatible with Ethereum Virtual Machine. According to BeInCrypto, the network delivers over 5,700 transactions per second with one-second block times and transaction costs of approximately $30 per million operations. The platform uses GateChain as its settlement layer and offers cross-chain connectivity through LayerZero technology.
Simultaneously, Gate announced comprehensive tokenomics upgrades for GT, transforming it from an exchange token into the exclusive gas token for Gate Layer. Dr. Han Lin, CEO of Gate, told BeInCrypto that over 180 million GT tokens have been burned, representing 60.18% of the initial supply. The dual-burn model will continue with scheduled buybacks and on-chain burns.
Strategic Positioning Against Layer 2 Competitors
Gate Layer enters a competitive market where major exchanges have already established Layer 2 presence. The Block reports that Gate follows Coinbase's Base and Kraken's Ink networks in leveraging OP Stack technology. Base currently holds $3 billion in Total Value Locked according to recent data, while Binance's opBNB competes with similar performance metrics.
Gate differentiates its offering by combining technical performance with existing exchange infrastructure. The platform provides immediate liquidity access for developers alongside products like Perps DEX, Gate Fun, and Meme Go. Cross-chain functionality allows applications deployed once to reach users across Ethereum, BSC, and Polygon networks. CoinDesk notes that exchanges are seeking to position themselves as full-stack Web3 providers rather than just trading venues.
Broader Layer 2 Market Expansion
The Layer 2 ecosystem continues rapid growth as blockchain networks address scalability limitations. Cointelegraph research shows Base ranks among the fastest-growing blockchains by active users in 2025, driven by ultra-low fees averaging $0.01 and integration with Coinbase's 100 million user base. Arbitrum and Optimism maintain strong positions with established developer communities and institutional adoption.
Competition extends beyond performance metrics to ecosystem development and user onboarding. Networks focus on reducing technical barriers through improved user interfaces and seamless wallet integration. The trend toward exchange-operated Layer 2 networks reflects broader institutional adoption and infrastructure maturation. Market analysts expect continued consolidation as platforms compete for developer attention and transaction volume.
GT token's evolution from exchange utility to blockchain infrastructure demonstrates the expanding role of native tokens in Web3 ecosystems. The deflationary mechanism through token burns combined with increased utility as gas token creates sustained demand drivers. However, networks face ongoing challenges including regulatory compliance, security considerations, and competition from established Layer 1 and Layer 2 solutions.
Further Reading
For those interested in understanding the broader decentralized infrastructure landscape, our comprehensive DAO tooling guide provides detailed analysis of over 100 platforms and tools used in decentralized governance. The guide covers essential infrastructure components that support projects like Gate Layer in building sustainable Web3 ecosystems.
