diff --git a/src/components/WalletDropdown/MiniPortfolio/PortfolioLogo.test.tsx b/src/components/WalletDropdown/MiniPortfolio/PortfolioLogo.test.tsx
new file mode 100644
index 0000000000..86838fa38f
--- /dev/null
+++ b/src/components/WalletDropdown/MiniPortfolio/PortfolioLogo.test.tsx
@@ -0,0 +1,20 @@
+import { SupportedChainId } from '@uniswap/sdk-core'
+import { DAI_ARBITRUM } from '@uniswap/smart-order-router'
+import { DAI, USDC_ARBITRUM, USDC_MAINNET } from 'constants/tokens'
+import { render } from 'test-utils'
+
+import { PortfolioLogo } from './PortfolioLogo'
+
+describe('PortfolioLogo', () => {
+  it('renders without L2 icon', () => {
+    const { container } = render(<PortfolioLogo chainId={SupportedChainId.MAINNET} currencies={[DAI, USDC_MAINNET]} />)
+    expect(container).toMatchSnapshot()
+  })
+
+  it('renders with L2 icon', () => {
+    const { container } = render(
+      <PortfolioLogo chainId={SupportedChainId.ARBITRUM_ONE} currencies={[DAI_ARBITRUM, USDC_ARBITRUM]} />
+    )
+    expect(container).toMatchSnapshot()
+  })
+})
diff --git a/src/components/WalletDropdown/MiniPortfolio/PortfolioLogo.tsx b/src/components/WalletDropdown/MiniPortfolio/PortfolioLogo.tsx
index d0f42ba028..d5283387c3 100644
--- a/src/components/WalletDropdown/MiniPortfolio/PortfolioLogo.tsx
+++ b/src/components/WalletDropdown/MiniPortfolio/PortfolioLogo.tsx
@@ -9,7 +9,7 @@ import useTokenLogoSource from 'hooks/useAssetLogoSource'
 import useENSAvatar from 'hooks/useENSAvatar'
 import React from 'react'
 import { Loader } from 'react-feather'
-import styled from 'styled-components/macro'
+import styled, { useTheme } from 'styled-components/macro'
 const UnknownContract = styled(UnknownStatus)`
   color: ${({ theme }) => theme.textSecondary};
 `
@@ -57,34 +57,28 @@ const ENSAvatarImg = styled.img`
   width: 40px;
 `
 
-const StyledChainLogo = styled.img<{ isSquare: boolean }>`
-  height: ${({ isSquare }) => (isSquare ? '16px' : '14px')};
-  width: ${({ isSquare }) => (isSquare ? '16px' : '14px')};
-  margin-top: ${({ isSquare }) => (isSquare ? '0px' : '1px')};
-  margin-left: ${({ isSquare }) => (isSquare ? '0px' : '1px')};
-  position: absolute;
-  top: 68%;
-  left: 68%;
+const StyledChainLogo = styled.img`
+  height: 14px;
+  width: 14px;
 `
 
-const ChainLogoSquareBackground = styled.div`
-  height: 18px;
-  width: 18px;
-  border-radius: 4px;
-  background-color: ${({ theme }) => theme.backgroundSurface};
+const SquareChainLogo = styled.img`
+  height: 100%;
+  width: 100%;
+`
+
+const L2LogoContainer = styled.div<{ $backgroundColor?: string }>`
+  background-color: ${({ $backgroundColor }) => $backgroundColor};
+  border-radius: 2px;
+  height: 16px;
+  left: 60%;
   position: absolute;
   top: 60%;
-  left: 60%;
-`
-
-const SquareBackgroundForNonSquareLogo = styled.div`
-  height: 16px;
+  outline: 2px solid ${({ theme }) => theme.backgroundSurface};
   width: 16px;
-  border-radius: 2px;
-  background-color: ${({ theme }) => theme.textPrimary};
-  position: absolute;
-  top: 68%;
-  left: 68%;
+  display: flex;
+  align-items: center;
+  justify-content: center;
 `
 
 /**
@@ -101,6 +95,7 @@ export function PortfolioLogo({
   const { squareLogoUrl, logoUrl } = getChainInfo(chainId)
   const chainLogo = squareLogoUrl ?? logoUrl
   const { avatar, loading } = useENSAvatar(accountAddress, false)
+  const theme = useTheme()
 
   const [src, nextSrc] = useTokenLogoSource(currencies?.[0]?.wrapped.address, chainId, currencies?.[0]?.isNative)
   const [src2, nextSrc2] = useTokenLogoSource(currencies?.[1]?.wrapped.address, chainId, currencies?.[1]?.isNative)
@@ -147,13 +142,15 @@ export function PortfolioLogo({
   }
 
   const L2Logo =
-    chainId === SupportedChainId.MAINNET ? null : (
-      <div>
-        {chainLogo && <ChainLogoSquareBackground />}
-        {!squareLogoUrl && logoUrl && <SquareBackgroundForNonSquareLogo />}
-        {chainLogo && <StyledChainLogo isSquare={!!squareLogoUrl} src={chainLogo} alt="chainLogo" />}
-      </div>
-    )
+    chainId !== SupportedChainId.MAINNET && chainLogo ? (
+      <L2LogoContainer $backgroundColor={squareLogoUrl ? theme.backgroundSurface : theme.textPrimary}>
+        {squareLogoUrl ? (
+          <SquareChainLogo src={chainLogo} alt="chainLogo" />
+        ) : (
+          <StyledChainLogo src={chainLogo} alt="chainLogo" />
+        )}
+      </L2LogoContainer>
+    ) : null
 
   return (
     <StyledLogoParentContainer>
diff --git a/src/components/WalletDropdown/MiniPortfolio/__snapshots__/PortfolioLogo.test.tsx.snap b/src/components/WalletDropdown/MiniPortfolio/__snapshots__/PortfolioLogo.test.tsx.snap
new file mode 100644
index 0000000000..56ec6ccc84
--- /dev/null
+++ b/src/components/WalletDropdown/MiniPortfolio/__snapshots__/PortfolioLogo.test.tsx.snap
@@ -0,0 +1,164 @@
+// Jest Snapshot v1, https://goo.gl/fbAQLP
+
+exports[`PortfolioLogo renders with L2 icon 1`] = `
+.c3 {
+  width: 40px;
+  height: 40px;
+  border-radius: 50%;
+}
+
+.c1 {
+  display: -webkit-box;
+  display: -webkit-flex;
+  display: -ms-flexbox;
+  display: flex;
+  -webkit-flex-direction: row;
+  -ms-flex-direction: row;
+  flex-direction: row;
+  gap: 2px;
+  position: relative;
+  top: 0;
+  left: 0;
+}
+
+.c1 .c2:nth-child(n) {
+  width: 19px;
+  height: 40px;
+  object-fit: cover;
+}
+
+.c1 .c2:nth-child(1) {
+  border-radius: 20px 0 0 20px;
+  object-position: 0 0;
+}
+
+.c1 .c2:nth-child(2) {
+  border-radius: 0 20px 20px 0;
+  object-position: 100% 0;
+}
+
+.c0 {
+  position: relative;
+  top: 0;
+  left: 0;
+}
+
+.c5 {
+  height: 14px;
+  width: 14px;
+}
+
+.c4 {
+  background-color: #0D111C;
+  border-radius: 2px;
+  height: 16px;
+  left: 60%;
+  position: absolute;
+  top: 60%;
+  outline: 2px solid #FFFFFF;
+  width: 16px;
+  display: -webkit-box;
+  display: -webkit-flex;
+  display: -ms-flexbox;
+  display: flex;
+  -webkit-align-items: center;
+  -webkit-box-align: center;
+  -ms-flex-align: center;
+  align-items: center;
+  -webkit-box-pack: center;
+  -webkit-justify-content: center;
+  -ms-flex-pack: center;
+  justify-content: center;
+}
+
+<div>
+  <div
+    class="c0"
+  >
+    <div
+      class="c1"
+    >
+      <img
+        class="c2 c3"
+        src="https://raw.githubusercontent.com/Uniswap/assets/master/blockchains/arbitrum/assets/0xDA10009cBd5D07dd0CeCc66161FC93D7c9000da1/logo.png"
+      />
+      <img
+        class="c2 c3"
+        src="https://raw.githubusercontent.com/Uniswap/assets/master/blockchains/arbitrum/assets/0xFF970A61A04b1cA14834A43f5dE4533eBDDB5CC8/logo.png"
+      />
+    </div>
+    <div
+      class="c4"
+    >
+      <img
+        alt="chainLogo"
+        class="c5"
+        src="arbitrum_logo.svg"
+      />
+    </div>
+  </div>
+</div>
+`;
+
+exports[`PortfolioLogo renders without L2 icon 1`] = `
+.c3 {
+  width: 40px;
+  height: 40px;
+  border-radius: 50%;
+}
+
+.c1 {
+  display: -webkit-box;
+  display: -webkit-flex;
+  display: -ms-flexbox;
+  display: flex;
+  -webkit-flex-direction: row;
+  -ms-flex-direction: row;
+  flex-direction: row;
+  gap: 2px;
+  position: relative;
+  top: 0;
+  left: 0;
+}
+
+.c1 .c2:nth-child(n) {
+  width: 19px;
+  height: 40px;
+  object-fit: cover;
+}
+
+.c1 .c2:nth-child(1) {
+  border-radius: 20px 0 0 20px;
+  object-position: 0 0;
+}
+
+.c1 .c2:nth-child(2) {
+  border-radius: 0 20px 20px 0;
+  object-position: 100% 0;
+}
+
+.c0 {
+  position: relative;
+  top: 0;
+  left: 0;
+}
+
+<div>
+  <div
+    class="c0"
+  >
+    <div
+      class="c1"
+    >
+      <img
+        class="c2 c3"
+        src="https://raw.githubusercontent.com/Uniswap/assets/master/blockchains/ethereum/assets/0x6B175474E89094C44Da98b954EedeAC495271d0F/logo.png"
+      />
+      <img
+        class="c2 c3"
+        src="https://raw.githubusercontent.com/Uniswap/assets/master/blockchains/ethereum/assets/0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48/logo.png"
+      />
+    </div>
+  </div>
+</div>
+`;