Blockchain technology has grown from a decentralized payment system to a powerhouse behind various applications such as DeFi, GameFi, NFTs, the metaverse, and Web3. However, the potential of blockchain technology is still limited by scalability issues and high transaction fees. This is where Layer 2 solutions come in.
Layer 2 solutions are protocols or frameworks built on top of existing blockchains to improve their speed and scalability. They allow for faster and cheaper transactions while still leveraging the security of the underlying blockchain. With increased adoption of dApps and the rise of Web 3.0, Layer 2 solutions are becoming increasingly important in the crypto space.
Currently, crypto investors are turning their attention to projects with solid fundamentals and continuous developments. Here are top 5 layer 2 cryptocurrencies that have attracted considerable interest in recent months. So, let’s get started!
Top 5 Layer 2 Cryptocurrencies To Buy Now
Polygon (MATIC)
Polygon is the leading Layer 2 solution that enables developers to easily create and deploy blockchains that integrate seamlessly with the Ethereum network. It also supports data and token exchanges among various Ethereum-based projects via the MATIC sidechain.
Polygon aims to solve the problem of high gas fees and slow transactions on Ethereum by providing a Layer 2 scaling solution that can handle thousands of transactions per second. The project has gained significant traction in the crypto market, with over thousand of dApps built on its network and partnerships with major players.
With Ethereum’s dominance in the DeFi space, Polygon is well-positioned for growth as more projects look for solutions to scalability issues. As per CoinMarketCap, the MATIC Coin is currently trading at $0.69, showing 6.90% increase in price over the last 7 days.
Arbitrum (ARB)
Arbitrum is another Layer 2 scaling solution that uses optimistic rollups to increase the throughput of transactions on the network. The Arbitrum project has significantly enhanced Ethereum’s scalability and user experience, attracting developers and users seeking faster and more affordable transactions.
One of the biggest advantages of Arbitrum is its compatibility with existing Ethereum dApps, which means that users can easily migrate their projects from Ethereum to Arbitrum without significant changes to their codebase. This makes it an attractive option for developers and users alike.
With its strong development activity and expanding ecosystem, Arbitrum is poised for continued growth and adoption in the coming months. As per CoinMarketCap, the ARB Coin is currently trading at $0.98, experiencing a 2.70% increase in the last 7 days.
Optimism (OP)
Optimism is a Layer 2 scaling solution built on top of Ethereum to address the network’s scalability issues. It uses optimistic rollups and has greatly enhanced Ethereum’s scalability and user experience, drawing both developers and users.
As the second-largest Layer 2 solution on Ethereum, it secures $313 million in its smart contracts and supports various protocols, including Synthetix and Uniswap.
As we found on CoinMarketCap, the OP Coin is currently trading at $2.49 and experienced an 1.78% increase over the last 24 hours. The OP Coin also ranks in the top 50 tokens by market capitalization.
Starknet (STRK)
Starknet (STRK) is a layer-2 scaling solution that uses zero-knowledge rollup (ZK rollup) to enable dApps to achieve exceptional scalability while preserving Ethereum’s security standards. Starknet aims to empower individuals to implement and use any social function on the blockchain freely.
Moreover, the Starknet project has been gaining traction from developers and investors due to its innovative scaling approach and potential to unlock new blockchain use cases.
The STRK Coin is currently trading at $1.09 according to CoinMarketCap, with a market capitalization of over $1.23 billion. With its innovative technology and growing ecosystem, StarkNet has the potential for significant growth in the coming years.
Mantle (MNT)
Mantle is the first modular Layer-2 solution that is designed with a main pocus on achieving widespread adoption and decentralized governance. Its governance is facilitated by the native token, MNT, which allows voting on new network initiatives
Mantle’s unique modular structure supports various transactions and actions across different layers, managed by participants via Ethereum rollups. Rollups effectively transfer computation and staged storage off-chain, reducing the computational load on Layer 1.
As per CoinMarketCap, the Mantle project has remarkably achieved a total market capitalization of $3.02 billion and is currently trading at $0.94, showing 1% increase in price over the last 24 hours.
Conclusion
As the demand for decentralized applications on Ethereum continues to grow, Layer 2 scaling solutions are becoming increasingly popular. Projects like Optimism and StarkNet offer scalability, low fees, and compatibility with existing dApps, making them attractive options for developers and users alike.
With their current success and potential for future growth, these Layer 2 solutions are certainly worth keeping an eye on in the world of blockchain technology. So, it is important for individuals and businesses to stay informed about these developments and make smart investment decisions in the ever-evolving world of cryptocurrency.
Also Read: Crypto Whales’ Picks for May: Top 3 Altcoins
Disclaimer: The information in this article should not be considered anything as financial advice, and the OvenAdd platform is intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.
