The crypto market is down on its knees as investors seek chances for growth in capital only to be disappointed by larger market downturn. Even though Bitcoin price has held relatively better, most altcoins and layer 2 cryptos bleed badly.
Layer 2 (L2) tokens are native tokens of Layer-2 (L2) platforms. These platforms enhance the scalability of Layer 1 (L1) blockchain platforms.
In addition to reducing transaction fees and scaling transactions, L2 tokens boost user experience on their L2 platforms. While an L2 platform generally relies on its underlying network's security, it still uses more efficient procedures that improve transaction speeds and reduce fees.
Overall, the L2 tokens' market cap is currently down by -1.67% over the past 24 hours to $12.54 billion. However, its trading volume also sits pretty at $713.26 million.
L2 tokens are – just like L2 platforms – invaluable to the blockchain space. In this article, we compiled some top five ones to consider for your next purchase:
MATIC is the top layer-2 coin per market cap with a price of $8.47 billion but declined by 1.68% in the last 24h to $0.9136. To some analysts, MATIC's failure to overcome the $0.95 resistance could see its price plummet further, fashioning a lower entry opportunity for long trades at $0.75.
Its blockchain, Polygon, proposes to offer speedy and cheaper transactions while retaining the Ethereum network's core attributes. With its total volume of about $10 billion, Polygon has grown into one of the most prominent L2 platforms.
ARB has a market cap of $1.58 billion but is down by 1.14% within the last 24h at $1.24. Despite adding new addresses, ARB's transaction volume declined by over 90%.
Some analyst, Michael Van de Poppe, opined that ARB is loitering around a resistance. He mentioned that its current price offers a long entry opportunity at $1.10, and if it breaks the $1.18 resistance, it could rally toward $1.30.
Arbitrum is highly regarded amongst developers, often lauded as the most effective L2 solution. It is developer-friendly and compatible with Solidity smart contracts.
OP is the top loser, declining 6.37% over the past 24h. It trades at $1.53 and has a market cap of $514 million.
Optimism protocol is reportedly set to unlock 9% of its native coin, OP's, total supply on May 31, 2023. There are suggestions that 386.5 million OP tokens (approximately $587.5 million) will be tallied with its circulating supply.
It has the most extensive and active DeFi ecosystem among L2 platforms and is compatible with Ethereum and smart contracts.
Although $ZKS has not been officially released as a token, there have been rife discussions of a token airdrop.
zkSync Era, on the other hand, is one of the foremost zero-knowledge (zk) rollups that securely scale Ethereum transactions. It processes transactions at a high speed and low cost.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.