/ Explore the transformative world of Layer-2 crypto projects in 2024. Discover top players like Optimism, Arbitrum, Polygon, and more.
Author: Nilesh Hembade.
Updated on: 24 Jan 2024, 19:58 PM IST
Cryptocurrencies are experiencing a major transformation, and at the heart of it all are Layer 2 projects. These newcomers are shaking things up, offering a solution to the nagging problems of slow speeds and high fees on Ethereum.
Imagine sending crypto in a flash, without breaking the bank. That’s what Layer 2 promises, and it’s changing the game for everyone. So strap in and let’s see how these projects are speeding up the future of crypto
What are Layer 2 Blockchains?
At the core of this evolution lies the concept of Layer 2 blockchains, a specialized set of scaling solutions meticulously designed to amplify the scalability and performance of existing blockchains, commonly referred to as Layer 1 (L1) networks. The beauty of Layer 2 lies in its ability to harness the decentralized security of the underlying blockchain while introducing transformative enhancements.
Top 10 Layer-2 Crypto Projects to Watch Out in 2024
1. Optimism (OP)
- Current Price: $2.80
- Market Cap: $2.68 Billion
- Optimism stands as a leading Layer 2 project for Ethereum, offering an optimistic rollup solution that bundles transactions off the mainchain, ensuring secure and efficient verification before optimistically assuming their validity. This ingenious approach results in near-instant transactions at minimal cost, effectively eliminating bottlenecks and the burden of hefty gas fees that have historically plagued Ethereum.
2. Arbitrum (ARB)
- Current Price: $1.69
- Market Cap: $2.15 Billion
- Arbitrum takes the spotlight as the premier Layer 2 solution on Ethereum, boasting improved smart contract functionalities that empower developers to build fast and efficient decentralized applications. With a remarkable transaction speed of 40,000 transactions per second (TPS), Arbitrum addresses Ethereum’s congestion issues and positions itself as a promising protocol with substantial user-perceived potential.
3. Polygon (MATIC)
- Current Price: $0.7286
- Market Cap: $7.0 Billion
- Formerly known as Matic Network, Polygon emerges as a frontrunner in the Layer 2 scaling solution space, specifically engineered to combat Ethereum’s scalability challenges and the associated high transaction costs. Positioned as an enticing crypto asset for potential investments in 2023, Polygon aims to optimize Ethereum’s decentralized application (DApp) functionality through the construction of scalable blockchain networks, offering features such as low fees and rapid confirmation times.
4. ImmutableX (IMX)
- Current Price: $1.85
- Market Cap: $2.45 Billion
- ImmutableX takes center stage for gamers and NFT lovers, offering blazing-fast transactions and zero gas fees. This Layer 2 scaling solution, built on Ethereum, distinguishes itself through its innovative ZK-Rollup technology. By bundling transactions off the main Ethereum chain and processing them in batches at lightning speed while maintaining the security of the underlying blockchain, ImmutableX revolutionizes the NFT gaming space.
5. Mantle (MNT)
- Current Price: $0.6135
- Market Cap: $1.9 Billion
- While most Layer 2 solutions focus on accelerating Ethereum transactions, Mantle takes a bold step by unlocking a gateway to interoperability within the blockchain landscape. Built on top of the Optimism network, Mantle leverages its unique infrastructure to seamlessly connect Ethereum with other blockchains, transcending the barriers between isolated ecosystems. Imagine freely transferring NFTs or DeFi assets between Ethereum and other prominent chains like Solana or Avalanche, all without compromising speed or security. Mantle accomplishes this feat through its innovative cross-chain messaging protocol, enabling atomic swaps and frictionless asset movement across different blockchain worlds.
6. Loopring (LRC)
- Current Price: $0.2291
- Market Cap: $313 Million
- Amidst the Layer 2 crypto project frenzy, Loopring shines as a pioneer in zk-Rollup technology, offering Ethereum users a potent mix of blistering speed, minimal fees, and advanced functionality. Its custom-built zk-Rollups process transactions off-chain, verifying them using cryptographic proofs on the mainchain, resulting in near-instantaneous settlements and gas costs that are mere fractions of those on Ethereum itself. This unlocks a world of possibilities for DeFi enthusiasts, traders, and anyone seeking a smooth, cost-effective experience. But Loopring is more than just a speed demon. It boasts a robust DeFi ecosystem built specifically for its high-performance infrastructure.
7. Skale (SKL)
- Current Price: $0.06761
- Market Cap: $345 Million
- For those seeking a unique approach to Ethereum scalability, SKALE offers a refreshing perspective. Unlike most Layer 2 solutions, SKALE leverages a network of independent “sidechains” built on top of Ethereum. These sidechains, also known as SKALE Chains, provide custom-tailored environments for specific applications, catering to diverse needs in terms of security, privacy, and transaction fees. This modular architecture presents exciting possibilities. Developers can choose the ideal sidechain for their project, whether it’s a high-performance DeFi protocol seeking blazing-fast speeds or a privacy-focused NFT marketplace requiring enhanced anonymity.
8. Manta Network (MANTA)
- Current Price: $2.94
- Market Cap: $740 Million
- Manta Network is a multi-modular ecosystem consisting of two blockchain networks with a focus on zero-knowledge (ZK) applications. Manta Network started out with Manta Atlantic, which is considered the fastest ZK Layer 1 chain on Polkadot. Then, the ecosystem expanded with the introduction of Manta Pacific, a modular Layer 2 platform driven by community involvement. The core philosophy revolves around empowering users with a seamless and cost-effective environment for deploying ZK applications, addressing the challenges faced by current solutions in terms of high gas costs and slow performance.
9. MetisDao (METIS)
- Current Price: $82.51
- Market Cap: $376 Million
- Metis‘ Layer 2 network, which bundles Ethereum transactions and processes them off-chain then returns them to Ethereum for recording, aims to improve Ethereum’s scalability. Metis provides an NFT bridge between its Andromeda network and Ethereum, NFT storage, a framework for its DAO, decentralized autonomous companies (DACs), and middleware to help developers manage their smart contracts. The Metis token (METIS) is used in the Metis ecosystem for staking and transaction fees.
10. AIA Chain (AIA)
– Current Price: $0.02223
– Market Cap: $595 Million
– AIA Smart Chain is a global leading decentralized digital economy ecosystem, providing highly transparent, safe, reliable, efficient, and convenient on-chain digital economy services for users and developers worldwide. AIA Smart Chain (AIA) is a programmable smart contract blockchain compatible with Ethernet Virtual Machine (EVM). AIA Smart Chain aims to provide the most efficient and reliable on-chain digital economy services to users and developers worldwide, while improving the fast execution time of on-chain Ether-based services through second-layer technology.
Stay abreast of these Layer-2 projects reshaping the cryptocurrency growth in 2024. Their unparalleled speed, efficiency, and innovation promise to redefine the future of blockchain technology.