Transactions on the Ethereum mainnet get more costly each time the cryptocurrency bull market starts. As a result, several initiatives have advanced the development of layer 2 crypto networks that are more affordable, quicker, and useful.
The top Ethereum layer 2 cryptocurrency projects with the greatest promise for 2024 are outlined technically in this article. Tokenomics, network activity, market capitalization, technology, and other elements are considered.
The Top Ethereum Layer 2 Crypto Available Right Now
High scalability, cheap transaction costs, high throughput capacity, robust security, and Ethereum mainnet compatibility are all features of the top Ethereum layer 2 projects. The layer 2 crypto list or layer 2 blockchain list for 2024 are as follows:
1. Pepe Unchained: The Initial Layer 2 Pepe Token on Its Chain
2. Arbitrum: Crypto layer 2 Ideal for inexpensive transactions
3. Polygon: The most adaptable Ethereum scaling option.
4. Optimism: L2 Coins Ideal for Equivalence with EVM
5. Blast: The most inventive Layer 2 coin project.
6. Loopring: Ideal for creating decentralized transactions
7. Eclipse: The Fastest Transaction
8. Mantle: The most effective decentralization method
9. Immutable X: Ideal for gaming and NFTs
10. dYdX: The greatest option for decentralized everlasting trading
Analyzing the Best Ethereum Layer 2 Crypto
After presenting our list of layer2 coins, let’s examine each in more detail to see what makes it special and its potential.
Pepe Unchained (PEPU) – The First Layer 2 Crypto Pepe Token on its Own Chain
Despite having its roots in meme coin culture, Pepe Unchained is much more than a meme currency. It was built as a distinct layer 2 network on top of Ethereum’s layer 1 and intended to improve the Original Pepe.
In addition to providing its users and supporters with a means of trading, staking, and interacting with the ecosystem, this offers its holders a clear value proposition: minimal costs and transactions up to ten times faster than those of ETH.
A low-cost bridge technology between Ethereum and Pepe Chain is another feature of Pepe Unchained. Since $PEPU is the primary cryptocurrency used by the project, it is used to pay for all gas expenses.
However, with the current APR of about 1,200% annually, Pepe Unchained enthusiasts may also gamble their coins. It’s important to remember that Pepe Unchained has already raised almost $1.8 million since the start of its presale.
Arbitrum (ARB): The Finest Option for Cheap Transactions
Because of its sophisticated scaling algorithm, Arbitrum is the top Ethereum layer 2 crypto project for inexpensive transactions. Compared to other L2 alternatives like Optimism, it drastically lowers gas prices, making transactions more affordable. Its optimistic rollup technique, which minimizes costs by batching many transactions before sending them to the
Ethereum mainnet, enables this cost-effectiveness. Arbitrum allows decentralized apps (dApps) and smart contracts compatible with Ethereum without sacrificing speed or efficiency. Arbitrum One and Arbitrum Nova, which use the Arbitrum Nitro stack to increase throughput and lower costs, are part of its ecosystem.
It has one of the greatest Total Value Locked (TVL) of any L2 solution, at approximately $2.97 billion. Decentralized governance via the ARB token, which enables users to vote on network improvements and other suggestions, is one of the distinctive characteristics.
Arbitrum’s security, based on Ethereum’s consensus, complements this governance architecture. Furthermore, Arbitrum’s AnyTrust networks have very cheap transaction costs, making them perfect for social media and gaming applications. Read our Arbitrum price forecast to learn more about our cryptocurrency outlook.
Polygon (MATIC)— Best Layer 2 Crypto Most Flexible Way to Scale Ethereum
The most adaptable Ethereum L2 is Polygon, which provides various scaling solutions. Its adaptability to different developer requirements and use cases results from its support for several scaling strategies, such as Polygon PoS, zkEVM, and Polygon Miden.
By handling transactions on a sidechain, Polygon PoS improves transaction throughput and lowers gas costs. zkEVM, an open-source ZK-Rollup, guarantees cheap costs and excellent scalability by being compatible with Ethereum Virtual Machines (EVMs).
Polygon ID offers blockchain-native identification solutions. Trustless cross-chain interoperability is what AggLayer guarantees. POL, a hyper productive coin that makes staking and governance across several chains easier, is introduced in Polygon 2.0.
Its goal is to use zero-knowledge (ZK) technology to combine scalability with liquidity. With a circulation supply of 9.28 billion MATIC and a current market valuation of $7.40 billion, Polygon is still a top option for developers looking for adaptable and flexible solutions.
Optimism (OP) – Best Layer 2 Crypto Ideal for Equivalence with EVM
The best Ethereum Layer 2 project for EVM equivalency is thought to be Optimism. It is the perfect option for developers seeking effective Ethereum deployment because its architecture guarantees compatibility with Ethereum’s smart contracts and dApps without the need for changes.
To attain scalability and lower transaction costs, Optimism uses optimistic rollups. It uses Ethereum’s security to maintain high throughput by processing transactions off-chain and only publishing the outcomes on Ethereum.
Its ecosystem’s support for various initiatives demonstrates its adaptability and strong infrastructure. Its OP token, which encourages network involvement and helps governance, is one of its distinctive characteristics.
Optimism’s vision calls for ongoing infrastructure upgrades to boost efficiency and growth, which is still popular among Ethereum L2s because of its vibrant community and distinct mission.
Blast (BLAST) – The Most Pioneering Crypto Layer 2 Because Of Its Unique Yield-Generating
Ethereum Layer 2 crypto Project Blast is the most inventive Ethereum scaling option. In contrast to previous L2s, Blast integrates Ethereum’s staking and Treasury Bill protocols natively, providing native income on ETH and stablecoins such as USDC, USDT, and DAI.
With the help of this function, users may get passive revenue without taking any further action. To guarantee EVM compatibility, Blast employs an optimistic rollup method. This makes it possible to deploy dApps without any changes.
Both developers and end users will find yield accrual easier to use because of its auto-rebasing capability for ETH and USDB.
It also has a gas revenue-sharing approach that allows app developers to get a portion of net gas prices. Blast showed tremendous growth and promise, reaching over $500 million in TVL soon after its debut.
Loopring (LRC): The Decentralized Exchange (DEX) Building Tool of Choice
A L2 blockchain-neutral protocol called Loopring was created especially for creating decentralized marketplaces. Order rings, which circularly match numerous orders to maximize liquidity and efficiency, are among the capabilities it offers DEXs.
One of its distinctive characteristics is its ability to combine the security of decentralized platforms with the efficiency of centralized exchanges by processing deals off-chain and settling them on-chain.
Loopring creates cryptographic proofs validated on the Ethereum mainnet by batching many transactions off-chain using zero-knowledge rollups. This lowers gas costs, boosts transaction throughput, and guarantees Ethereum-grade security.
To ensure network security and community engagement, the LRC token is essential for staking, governance, and receiving a portion of protocol fees. For safe and scalable Ethereum transactions, Loopring is still the best option.
Eclipse: The Layer 2 Blockchain with Fastest Transaction
Regarding transaction speed, Eclipse is among the top Ethereum L2 crypto projects. Using the Solana Virtual Machine (SVM) for execution, which handles transactions faster than the EVM, achieves an unmatched throughput.
Because of this, Eclipse can manage many transactions with little latency, making it perfect for applications that need quick processing times. Eclipse chooses Ethereum, guaranteeing strong security by verifying the sequence and authenticity of transactions using Ethereum’s validating bridge.
Eclipse is efficient and safe because of the combination of Ethereum’s security and Solana’s speed. Additionally, it uses Celestia for data availability, offering scalable bandwidth that exceeds Ethereum’s present capabilities.
Eclipse’s use of RISC Zero for effective zero-knowledge fraud proofs and its register-based architecture, which makes proving easier, are two of its distinctive characteristics. To facilitate interaction with Ethereum’s DeFi and NFT ecosystems, Eclipse intends to use ETH for gas costs rather than creating its coin.
Mantle (MNT) — The Decentralization Best Option
Mantle’s unique design and governance style make it the ideal Layer 2 for decentralization. A DAO-governed network guarantees a decentralized and community-driven growth process by allowing MNT token holders to make important choices.
This governance structure’s modular architecture makes high degrees of decentralization and flexibility possible. Mantle’s design isolates transaction execution, data availability, and transaction finality into different modules.
Throughput is increased, and gas prices are greatly decreased using Optimistic Rollups for scaling, compressing transactions and settling them on Ethereum. Mantle also uses EigenDA to make decentralized data available to support a decentralized architecture.
Furthermore, the Mantle EcoFund and Grants Program encourages innovation in the ecosystem by supporting new initiatives. Mantle is a top Ethereum L2 project because of its decentralization, modularity, and strong developer support. Additionally, Mnatle recently joined with BitDAO, which contributed to its growth.
Immutable X (IMX): The Best for Blockchain Gaming and NFTs
Because of its instantaneous transaction speeds, scalability, and gas-free minting and trading, Immutable X is the finest Ethereum layer 2 option for NFTs. Immutable X, which uses StarkWare’s ZK-Rollup technology, allows for high-volume NFT transactions without sacrificing security, which makes it perfect for traders and developers looking for performance and cost-effectiveness.
Immutable X appeals to developers and users who care about the environment since it provides a carbon-neutral platform. Because of the platform’s API-driven methodology, developers without extensive blockchain experience may easily integrate it.
This feature improves the platform’s accessibility and reach, as does a global order book that spreads NFTs over many markets. The $IMX token is used for the stake, administration, and transaction fees, and the Immutable X Marketplace allows trades to happen without using gas.
In addition, the platform is home to several well-known gaming projects, such as Gods Unchained and Illuvium, which use its safe and scalable architecture to enable Web3 games of the future.
dYdX (DYDX) – Ideal for Decentralized Perpetual Trading
dYdX Professional traders looking for cutting-edge trading tools may benefit from dYdX’s support for margin and perpetual trading with up to 20x leverage. dYdX’s non-custodial nature, which guarantees users retain ownership of their assets, is one of its key features.
ZK-Rollups are used to boost scalability while maintaining Ethereum’s security. One of dYdX’s unique characteristics is its decentralized governance, which enables the community to vote on and suggest protocol updates using the $DYDX token.
The platform’s move to dYdX v4 on the Cosmos SDK also intends to improve performance and further decentralize.
What Is an Ethereum Layer 2 Project?
Ethereum, a layer 1 cryptocurrency, has insufficient throughput to handle the traffic volume on its network, prompting the development of layer 2 networks. Only final verifications are performed on the main blockchain via scaling solutions developed on top of Ethereum’s layer 1 blockchain, which handles transactions separately. Although rollups and sidechains are the most popular forms of layer 2 networks, there are other varieties and forms of scaling solutions, such as Rollups (optimistic rollups and zkRollups), Sidechains, State/payment channels, Plasma chains, and Valididiums (zkSNARKs and zkSTARKs).
Why Invest in Ethereum Layer 2 Blockchain Coins?
Helping to resolve the scalability problem in cryptocurrency may be a highly profitable use case, as seen by the price of Polygon MATIC during the most recent bull run. Here are several justifications for purchasing layer 2 coins in light of that.
Improved Scalability and Efficiency
At the moment, Ethereum’s network handles around 600 transactions per 12 seconds, resulting in a throughput of about 50 transactions per second. Although this figure may not seem like much, it was only attained during the most recent Dencun improvement. Ethereum managed 15 to 30 transactions per second before that.
However, the second-largest cryptocurrency by market capitalization benefits from its scaling solutions, which not only handle more transactions per second on average but also lessen the need for more transactions to be processed directly on Ethereum.
Growing Demand and Adoption
Cryptocurrencies as a development environment and investment vehicle are growing in popularity. This is particularly relevant in light of the de facto mainstreaming of cryptocurrency with the launch of Bitcoin and Ethereum ETFs.
Demand rises with acceptance, leading to more transactions and scalability issues. Layer 2 scaling solutions come into play here and provide a much-needed answer.
Reduced Gas Fees
As the name implies, Layer 2 blockchain scaling solutions are developed to enhance scalability. Higher throughput and cheaper gas prices are the results.
Gas prices are often not all that different between an uncongested mainnet and an uncongested layer 2 network. But in 2021, we all saw the highest Ethereum mainnet congestion gas costs, which amounted to hundreds of dollars.
Having layer 2 networks in your toolbox is a wise move to avoid being entangled in such congestion.
High Upside Potential
Polygon is the biggest layer 2 by market size, with a little over $5 billion. In contrast, Ethereum and Bitcoin have over $100 billion market capitalization. In addition, many Layer 2 companies on our list have market capitalizations under $1 billion.
Compared to well-known currencies like Bitcoin or Ethereum, low market cap layer 2s may provide much more upside potential despite the possibility of increased risk. Therefore, you may look at lesser market value projects if you seek a layer 2 cryptocurrency with the biggest potential.
FAQs
Conclusion
Ethereum layer 2s are among the most promising cryptocurrencies available right now. However, after carefully analyzing the top Ethereum layer 2 projects, we discovered that Pepe Unchained ($PEPU) could be the greatest available.
Built on Ethereum’s L2 chain, this meme coin with a Pepe theme promises quick transaction speeds, cheap transaction fees, and large staking rewards. At the moment, $PEPU is offered for presale purchase.
