Ethereum Layer 3 solutions are seen as the next big thing in crypto, offering scalability and customization for DeFi and gaming.
Guy Turner from Coin Bureau recently listed XAI, Degen Base (DEGEN), and ORBS as promising Ethereum L3 projects.
Launched in March 2023, XAI has a market cap of $280 million and could rally 300% to $3 based on technical analysis.
Built on Coinbase's Base L2, DEGEN has a market cap of $483 million and could surge to $1 based on its chart pattern.
ORBS is a general-purpose L3 solution and has a market cap of $147 million. This coin could potentially surge 4,230% to its all-time high.
Don't let Ethereum's current sluggishness fool you.
The cryptocurrency is headed for significantly better days, and this goes for all of its layers.
Ethereum layer 2 solutions have been fairly popular so far, with some of them like Base, Optimism and Polygon dominating the scenes so far in terms of price, TVL and daily active users.
But what if the incoming bull run was an opportunity for Ethereum L3s to shine?
Let’s go over a few things.
Ethereum L3s are fairly simple.
While L2s (or Layer 2s) sit directly on top of the main Ethereum network and act as scaling solutions for speed and lower fees, Ethereum L3s do just the same.
These blockchains build on the relationship between Ethereum and its L2s, by sitting on top of the Layer 2 blockchains and providing much, much better customization, lower fees, interoperability and scalability.
Ethereum > Layer 2s > Layer 3s
According to a new Coin Bureau video posted on YouTube featuring host, Guy Turner, Layer 3s might be the next big thing.
“Thing is, layer-3s are also super efficient, making them perfect for things like gaming, decentralized finance (DeFi) and much much more besides. As such, layer-3 chains and the cryptos launching on them have some serious 100x potential.”
Turner went further to list three of the top Ethereum L3s he believes to have the most upside potential, and we think they’re worth looking into.
Here are all three:
XAI, according to CoinMarketCap, has been fairly popular since its launch in March 2023.
It was built on top of Arbitrum and currently has a market cap of around $280 million.
The cryptocurrency has a total supply of around 1 billion tokens, as well as a current price of $1at the time of writing.
XAI in the charts
According to the charts, the cryptocurrency is currently struggling to maintain its standing above the $1 support, before a dip to $0.66.
Over the near term, the cryptocurrency appears bearish and might take a little patience to get in on.
However, the prospects remain wildly valid, with a possible 300% rally to around $3 in the works, per indication from the Fibonacci retracement tool.
Degen Base is another strong contender for the top Ethereum L2s to pick from.
As the name implies, Degen Base was built on top of the Base Ethereum L2 (which was developed by Coinbase and has experienced explosive growth over the last year).
Degen Base currently has twice the market cap of XAI at around $483 million, a current price of around $0.034 and a total supply of around 37 billion $DEGEN.
Degen Base’s price prediction
According to the chart above, $DEGEN has an almost clear path upwards to the $1 zone.
The ascending trendline above is one of the contributing factors to this potential, with a break below $0.024 being the only thing that invalidates this outlook.
ORBS is the third protocol on this list, with a market cap of around $147 million.
Unlike Degen, which is a highly specific layer 3 solution, ORBS focuses on being a more general-purpose layer 3 infrastructure for Ethereum.
While Degen was built on top of Base and XAI was built on top of Arbitrum, Orbs works as a separate chain, running parallel Ethereum and only making contact with it at intervals.
The cryptocurrency has a total supply of around 10 billion tokens.
ORBS in the charts
According to the charts, the cryptocurrency has declined strongly from its March 2022 all-time high of $2 and now trades at around $0.046.
This means that the cryptocurrency is down by around 87% from its all-time high, and could be poised for a staggering 4,230% rally if we will ever see Orbs retest this $2 high.
Considering the signs of recovery the cryptocurrency is showing in the chart above, we can conclude that ORBS may have the most potential of all the cryptocurrencies on this list.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it 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.